What Is A Stay Of Execution & How Do I Get One?
Having a CCJ filed against your company can be very stressful. CCJs can last a long time on a credit record so time is of the essence to act according and prevent any detrimental impact. A stay of execution can be a vital procedure for any business in this challenging position, helping you to gain some time free from high court enforcement to work out the next steps when it comes to your company debt.
What Is A Stay Of Execution?
A stay of execution is a temporary pause on the enforcement of a CCJ. When granted following a successful application, it gives troubled businesses some time to either appeal via a hearing or consider a payment plan. During the time that the stay of execution is in place, bailiffs do not have the power to seize company assets.
How To Get A Stay Of Execution
If you want to enter into the stay of execution process to challenge or deal with a CCJ filed against your company, you have to apply to the court that initially issued the judgement.
You must use a form to do this, though there are two different types depending on what you are aiming to do during the period in which the CCJ cannot be enforced. An N244 form will be submitted to the courts if you want to challenge and appeal the CCJ, for example, if you think it has been incorrectly filed in the first place. If you want to file for a repayment plan to settle the debts, then an N245 form should be filled out. During this process, you will have to provide details of how you intend to keep up with the agreed payments.
There may be a short waiting period before the court returns to you with a verdict, so it is sensible to request an interim stay of execution when you apply to ensure that the CCJ cannot be enforced while you wait for a decision. The judge will then ask the creditor to agree to the request before your stay of execution can be granted.
As the process is different depending on the intended outcome for your company, it is vital to speak to a licensed insolvency practitioner if you are considering getting a stay of execution.
How Long Does A Stay Of Execution Last?
In most circumstances, a stay of execution will last for 30 days. This is because most appeals typically take 30 days to reach their endpoint.
Remember that a stay of execution is not the solution to a CCJ but gives you time to find or agree on one. You must therefore act quickly and effectively during the time allotted.
What Happens If A Stay Of Execution Is Denied?
If the court rejects your application to enter into the stay of application process, you are legally obliged to repay your debts to the creditors. The timeframe given to do this will differ on a case by cases basis. In some circumstances, you may be required to pay immediately, while in other scenarios you may be given a specific deadline in the future.
You may find that you are unable to repay your debts and will have to enter into an insolvency process as a result. Company Voluntary Liquidation and Members Voluntary Liquidation are both daunting prospects but can result in a suitable outcome for all parties if initiated at the right time. Therefore you should always consult a professional at the first signs of any trouble paying your debts so that you can understand all of the options available to your company and avoid compulsory liquidation if your stay of execution is unsuccessful.
