Protective Distraint

Protective distraint is another tool that may be used by Commercial Landlords when their tenant is in arrears with Rent. This process allows the Landlord an opportunity to make an agreement for the payment of rent arrears, whilst ensuring that they retain the right to sell the seized goods should the tenant default. By entering into such an agreement, the tenant is able to continue trading on the premises, which is likely to be in the best interests of both parties concerned.

If your tenant has fallen into arrears, you may instruct Direct Collections Bailiffs Limited to arrange a protective distraint in conjunction with the tenant. We will arrange for a Certificated Bailiff to attend at a mutually agreeable time to meet with the tenant at the demised premises. The Certificated Bailiff will then undertake a thorough inventory of seized goods. The Certificated Bailiff will then enter into a Walking Possession agreement, which must be signed by the tenant. Naturally the Certificated Bailiff explains the implications of signing the agreement to the tenant and ensures that it is clearly understood. The agreement is renewed at agreed intervals by the Certificated Bailiff, until such time as the need for protective distraint is no longer required.

To you, the Landlord, the major benefits of the Protective Distraint route is that if the tenant defaults on the agreed arrangement for repayment, the Certificated Bailiff may re-attend the premises immediately. This can be done by force if needed however this is not usually necessary. The purpose of the re-attendance is to remove and sell the seized goods at public auction to clear the outstanding arrears.

The potential implications of the tenant not adhering to the agreement are usually sufficient to incentivise them to uphold the arrangement.

A further distinct advantage to you, the Landlord, is that no other creditors such as the HMRC or Local Authorities can attempt to distrain on the assets that have already been seized.

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