Maybe you are interested in someone who has gone into default, and you are worried about the possibility of them relocating or trying to hide their assets before you can secure a judgment. The courts issue what are known as ‘freezing’ orders to avert such behaviour. Concern is rising in the UK about the rising number of freezing orders.
1. Gather Evidence and Prepare Your Claim
Gather bank statements, correspondence, and payment records, as well as proof of payments or contracts, and any documents that could help support your case, even if they are not necessarily proven, but suggest something more compelling than just a hunch.
When you think you need to apply for freezing order, begin compiling your evidence.
2. Decide Whether To Apply With Or Without Notice
Should you perceive that there is a genuine risk that the assets will vanish, you can apply ex parte, that is, without notice to the other party. Otherwise, you can grant notice and enable a response. Regardless of the option you select, you must make full disclosure. You must provide relevant information to the court, including unfavourable evidence to your case, which supports the other side’s position.
3. Draft And File Your Application With Affidavit Evidence
Begin with a draft that includes relevant jurisdictional orders and then add an affidavit explaining justified risk of dissipation, urgency, the relations involved, and what risk counter pledge is offered if wrong.
For example, analyse the Account Freezing Orders issued in the UK between 2021 to 2023.
There were a total of 125 orders in the first year, which rose sharply to 341 in 2023, cumulatively freezing approximately £57 million worth of assets. That indicates a collective rise of £43 million in the frozen assets. This has been chosen to demonstrate how some cases are time sensitive.
4. Attend The Initial Hearing And Get The Interim Order
During the short hearing of what could be ex parte-type hearings, the judge may issue an interim freezing order for not more than two weeks, after which a full return date hearing is held. This is particularly helpful in addressing matters of great urgency.
5. Serve The Order And Prepare For The Return Date Hearing
As soon as the interim order is made, the affidavit, along with other documents, is personally served on the respondent’s counsel. This takes place during the return hearing, and after hearing both parties, the judge decides whether to leave the order as is, modify it, or discharge it.
6. Comply With The Order And Monitor Assets
The respondent is obligated to provide relevant data on the liabilities. He should make allowances for ordinary living or business expenditures. He is bound by the terms of the order.
If the respondent does not comply, they risk contempt of court charges, which come with the risk of hefty fines and/or imprisonment.
7. What Happens At The Return Date Hearing
In the course of short hearings, which may be regarded as ex parte sessions, judges are more likely to grant interim freezing orders to be held for a maximum of two weeks. Directly after, the full return date hearing is scheduled. Such provisions are especially useful for cases with time-sensitive issues.
8. If The Order Continues
In the event the court does decide to extend the order, it is most common that the order stays in effect until judgment or other resolution. In the case that it’s varied to say, expense rules or freeze rules about certain assets, you will have to readjust and continue with your monitoring.
9. If The Order Is Lifted Or Discharged
If the court does lift the order, you have to do something. After this, the other remedies that may be pursued are, asset tracing order, a third-party debt order, or enforcement steps that take place post-judgment. These steps can be taken to safeguard interests.
10. After Judgment And Enforcement
Winning the case allows enforcement through charging orders, garnishee orders, or executing against assets. If the asset is handled well, a freezing order will be able to preserve it and will serve to support later enforcement while showing the court that the claim was valid from the very beginning.
Treat an order of this nature as a suspension of access to the assets in question until the case resolves. It may be an extreme step to take, but it is useful. You are compelled to take protective measures to stop, preserve, or maintain assets to ensure fairness in the case, to avoid vindictive asset concealment activities. The recommendation is to obtain a restraining order as early as possible in cases where the possibility of asset diminishment exists before a judgment is made.
