What happens when an arrest of assets is made as a result of Royal Court judgment ?
Once an arrest of a debtor's assets is made under a Royal Court judgment, this will be reported to the judgment creditor. A copy of the inventory of the arrested assets will be provided so that the judgment creditor can decide whether it is financially worthwhile to proceed with obtaining the Royal Court's permission to sell the assets available. HM Sheriff will advise the creditor as to the likely return following a forced sale of the assets at a Sheriff's auction.
Monies that have been arrested in the hands of a bank - Where monies have been arrested in the hands of a bank then the judgment creditor must summon the bank to court to declare how much they are holding for the credit of the debtor and request that these monies are paid over to HM Sheriff and then paid over to them.
What happens if the judgment creditor wishes to proceed further with a sale of personal assets belonging to the debtor?
If the judgment creditor wishes to proceed further, then the arrest must be confirmed in the Royal Court and the permission of the Court must be sought to sell the items. The debtor should be summoned to attend the Court at the time of this application. Once permission is granted an Act of Court will be provided which will authorise HM Sheriff to proceed with the sale.
How does HM Sheriff sell the arrested assets?
HM Sheriff will then decide how best and when to sell the arrested items in order to maximise the likely return for the creditor. This might be by auction or by tender. HM Sheriff can utilise the services of an independent commercial auctioneer if this is felt to be the best way to achieve the best return.
What happens next when the assets have been sold?
Once all the assets have been sold HM Sheriff will report to the creditor how much has been raised from the sale less the costs of the department and the creditor will then need to summon HM Sheriff back to the Royal Court to declare how much is available. At this point the creditor should request that the Court orders that the monies should be paid over to them.
In Court, HM Sheriff will be asked whether there are any other creditors, judgment or otherwise that he is aware of. If there are and the amount available will not satisfy all the judgments then the Court will declare that a desastre hearing will need to be convened.
If there is sufficient funds to pay all known creditors then HM Sheriff will be ordered to pay over the sums to satisfy the judgment debts.