Bailiffs and Your Business: How to Stop Bailiff Action

You can often stop bailiff action against your business by acting as soon as the first notice arrives: offer an affordable payment arrangement to the creditor, ask the court to pause any judgment enforcement, or, if the business cannot recover, use a formal procedure. What bailiffs can take, and whether they can force their way in, depends on the type of debt and on whether you are a sole trader or a limited company.

This guide covers England and Wales only. It reflects the changes to bailiff rules that took effect on 1 May 2026. If you run a limited company, specialist free help is available from Business Debtline.

Sole trader or limited company: who owes the debt?

This is the first question to answer, because bailiffs can only take goods belonging to whoever owes the money.

• Sole traders are personally liable for business debts. There is no legal difference between you and your business. Bailiffs collecting a business debt can take your personal goods as well as business goods, including from your home.
• Limited companies are separate legal persons. Bailiffs collecting a company debt can only take goods the company owns. They should not take a director’s personal belongings unless the director has personally guaranteed the debt and a separate judgment has been made against them.
• Partnerships (not LLPs) are usually treated like sole traders: each partner can be personally liable.

Which business debts can lead to bailiffs?

Business rates

If business rates are not paid, the council can get a liability order from the magistrates’ court and pass the debt to a private enforcement company. No county court judgment is needed. The enforcement agent must send a notice of enforcement giving at least 14 clear days before visiting. For business rates they must enter peacefully and cannot force entry on a first visit. Contact the council early: you may be able to spread payments, and it is worth checking you are receiving any rate relief you qualify for.

Commercial rent arrears (CRAR)

Commercial Rent Arrears Recovery lets a landlord of commercial premises instruct an enforcement agent to take control of the tenant’s goods without going to court first. The main rules are:

• There must be a written lease of commercial premises. CRAR cannot be used if any part of the property is let as a home.
• The unpaid rent must be at least seven days’ rent. Only the rent itself (plus any VAT and interest on it) counts. Service charges, insurance and business rates do not.
• The enforcement agent must give 14 clear days’ notice, under the rules in force from 1 May 2026 (it was seven clear days before that).
• Entry must be peaceful, through a normal entrance such as a door or loading bay.
• The landlord can also serve notice on any sub-tenants, requiring them to pay their rent direct to the landlord until the arrears are cleared.

Business Debtline’s guide to commercial property leases explains CRAR and a landlord’s other options, such as forfeiture of the lease.

HMRC debts

HMRC can take control of goods for unpaid tax, such as VAT, PAYE or self-assessment, without first going to court. Its officers, or enforcement agents acting for it, must give 14 clear days’ notice. HMRC cannot break in without first getting a warrant from a court, and a court will consider whether this is reasonable. The best way to prevent this is usually to contact HMRC and ask for a Time to Pay arrangement. GOV.UK explains what to do if you cannot pay your tax bill.

Court judgments and High Court writs

If a supplier or other creditor gets a county court judgment, they can enforce it with county court bailiffs or, for judgments of £600 or more, transfer it to the High Court for enforcement by a High Court Enforcement Officer (HCEO). Business debts are rarely regulated by the Consumer Credit Act, so most can be transferred. Judgments of £5,000 or more must go to the High Court if bailiffs are used. Our guide to the different types of bailiffs explains who does what.

To stop a county court warrant, you can apply to suspend it. To stop a High Court writ, you can apply for a stay of execution. See our guide on how to stop a warrant of control for the steps.

Can bailiffs force entry to business premises?

Sometimes, and more often than for a home. The rules depend on the debt:

If your premises are open to the public, an enforcement agent may be able to walk in during opening hours. That is why dealing with the debt before a visit matters.

What can bailiffs take from a business?

Sole traders: the tools of the trade exemption

If you are an individual, bailiffs cannot take items you need personally for your job or business, such as tools, vehicles, phones or computer equipment, up to a total value of £1,350. Anything above that value, and business goods you do not need personally for your work, such as stock, can be taken. Basic household goods at home are also protected. Our guide to what bailiffs can take lists the exempt items in full.

Limited companies

The £1,350 exemption is for individuals. A company’s stock, equipment, vehicles and machinery that it owns can generally be taken, so the risk to a limited company’s trading assets can be higher. Keep clear records of which assets belong to the company and which belong to directors or others personally.

Third-party goods and leased equipment

Bailiffs can only take goods that belong to the person or company that owes the money. They should not take:

• Equipment that is leased or rented from a finance company.
• Customers’ goods left with you for repair or storage.
• Goods belonging to a landlord, another business sharing the premises, or a director personally.

Keep lease agreements, invoices and receipts on site so you can show who owns what. If goods belonging to someone else are taken, the owner can make a claim to the court to get them back. Goods on hire purchase can be more complicated, so get advice.

Letters from debt collectors are not bailiffs

Many businesses receive letters from debt collection agencies such as Commercial Collection Services Ltd (trading as CCS Collect) or Moorcroft. These firms are not bailiffs. They have no power to take goods or enter your premises. For most debts they can only lead to bailiff action if the creditor takes you to court first. The exception is tax: CCS Collect also collects for HMRC, and HMRC can take enforcement action without going to court. Our guide to dealing with CCS Collect explains how to respond.

How to stop bailiff action on your business

Options for any business

1. Read the notice and note the creditor, the debt and the deadline.
2. Contact the creditor and the enforcement company straight away. Offer a realistic payment plan backed by a cash-flow forecast.
3. For tax debts, ask HMRC for Time to Pay before enforcement begins.
4. For judgments, apply to suspend a county court warrant or to stay a High Court writ.
5. Get free specialist advice if you cannot afford the payments being asked for.

Options for limited companies

If the company is insolvent, or close to it, directors must take advice from a licensed insolvency practitioner and must consider creditors’ interests. Formal options include:

• A company moratorium, which gives an initial 20 business days of protection from most creditor action, overseen by an insolvency practitioner acting as monitor. It can be extended. See GOV.UK’s guide on how to get a moratorium.
• A Company Voluntary Arrangement (CVA), a legally binding deal with creditors to repay part of the company’s debts over time while it keeps trading.
• Administration, where an administrator takes control of the company. Creditors generally cannot take enforcement action without the administrator’s consent or the court’s permission.

These are complex procedures with costs and consequences. Business Debtline can talk you through them free of charge.

Options for sole traders

• Breathing Space pauses most enforcement for 60 days. Some business debts qualify, although there are restrictions for VAT-registered traders.
• An informal payment arrangement or Debt Management Plan may work if creditors agree, though they are not legally bound.
• An Individual Voluntary Arrangement (IVA) can include business debts, such as HMRC tax and supplier debts, and may allow you to keep trading. Once approved, the creditors included cannot use bailiffs for those debts. It is not suitable for everyone. Our page on how IVAs work explains the pros and cons.
• Bankruptcy or a Debt Relief Order may be options if you cannot repay. Both stop the creditors included from enforcing, but both have serious effects, including on your business. Read more about bankruptcy.

Common questions

Free, independent debt advice is also available from MoneyHelper, StepChange, National Debtline and Citizens Advice.