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Government Toughens up Bailiff Laws

The government has pressed ahead with the abolition of the common law remedy of distress for commercial property. Paul Henson, Senior Associate at Collyer Bristow LLP, explains the new commercial rent arrears recovery (CRAR) process and how this will affe

The government indicated its strong commitment to tackling aggressive bailiffs without compromising enforcement in the consultation paper Transforming Bailiff Action (2012). It stated: "It is still necessary for enforcement action to be available by enforcement agents seizing and selling goods to pay the debt. It is accepted, however, that when this enforcement action is taken, debtors should be treated fairly and proportionately."

In light of this pledge, the Taking Control of Goods Regulations 2013, one of three statutory instruments underpinning a package of reforms to bailiff law, will come into force on 6 April 2014. Although the new rules aim to protect defaulting tenants from rogue bailiffs, landlords will be less than pleased that their ancient common law remedy of distraint has been abolished and replaced with a significantly diluted alternative.

Previously, certified bailiffs could enter the leased commercial premises of a defaulting tenant and remove and sell goods owned by the tenant up to the value of the rent arrears. This right to 'distrain for rent' provided landlords with a relatively cheap and effective method to recover arrears, without initiating costly court proceedings.

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