UK Bailiffs
A practical guide for landlords, agents and solicitors on when Commercial Rent Arrears Recovery (CRAR) can lawfully be used — including how to handle CVLs, administration, compulsory liquidation, dissolution, bankruptcy/IVAs, and the powerful 14‑day notice to subtenants.
A CVL does not create a statutory moratorium. After the liquidator is appointed, there is no automatic stay on enforcement. Landlords may commence CRAR provided the lease has not been disclaimed and the liquidator has not taken possession of goods at the demised premises. Best practice is to notify the liquidator and instruct bailiffs to commence CRAR on the same day to protect the landlord’s position and ensure transparency.
On entry into administration, the statutory moratorium in Schedule B1 (para. 43) applies. CRAR cannot be commenced or continued without the administrator’s consent or permission of the court. The court will only grant leave where CRAR will not undermine the administration’s rescue or realisation objectives.
In a compulsory winding‑up, s.130(2) of the Insolvency Act 1986 stays proceedings. CRAR requires leave of the Insolvency Court. If CRAR was started before the petition/order, elements may continue, but sale will still need permission.
Once dissolved, a company no longer exists. There is no tenant entity and CRAR cannot be used. The landlord must consider restoration with the Courts before pursuing arrears.
A bankruptcy order creates an automatic stay ( s.285 IA 1986 ). Goods vest in the Official Receiver or Trustee in Bankruptcy. CRAR cannot proceed; the landlord should lodge a proof of debt and consider forfeiture/possession options where available.
With an IVA, enforcement depends on the terms of the arrangement and whether a moratorium applies. If no moratorium exists, CRAR may technically proceed, but acting contrary to an approved IVA can breach its terms. Always check the IVA proposal and seek the Supervisor’s written position first.
Where a subtenant occupies the premises, a landlord can serve a 14‑day notice requiring the subtenant to pay rent directly to the superior landlord instead of the (insolvent) tenant. This can operate even where the head tenant is in CVL or administration, providing a lawful rent diversion to protect the landlord’s position.
| Scenario | CRAR? | Notes |
|---|---|---|
| CVL (lease live; goods not in liquidator’s possession) | ✅ Yes | Notify liquidator and instruct bailiffs to commence CRAR. |
| Compulsory liquidation | ❌ No (without leave) | Court leave required under s.130(2) IA 1986. |
| Administration | ❌ No (without consent/leave) | Statutory moratorium under Sch. B1 para. 43. |
| Dissolution | ❌ No | Company must be restored before action. |
| Individual bankruptcy | ❌ No | Stay under s.285 IA 1986; lodge proof of debt. |
| IVA (individual) | ⚠️ Maybe | Check IVA terms/moratorium; consult Supervisor. |
| Subtenant present | ✅ Yes | Serve 14‑day notice under s.81 TCEA 2007 to redirect rent. |
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