Bank Arrestment

Bank Arrestment

Didn't find your answer?

Is it legal for an one company to make an arrestment on an other Ltd company in Scotland, if there bank ballance is only £2000, and the company has a loan a/c oustanding to the bank for £80k, in other words can a negitive equity sum be frozen,by a Sheriffs court order.
D.Mckenzie

Replies (2)

Please login or register to join the discussion.

aw_logo_2019
By Accounting WEB
18th Oct 2000 22:50

Many Thanks Jim
I have been told that it is illegal by an Auditor of court, and two bank managers at The Royal Bank Of Scotland,but the Clydedale bank and your self say that it is legal,!!!
So I have instucted our company lawer to find out, this may cost me, but it will keep them on there toes,
I will keep you posted,unless anybody out there can beat the lawer to it.
Can I log on some site to get a copy of the Debtors Scotland Act 1987?

Thanks (0)
avatar
By jimwatson
18th Oct 2000 11:35

bank arrestment
The freezing of accounts is covered by the debtors Scotland Act 1987. It does not matter if there is an outstanding loan on another account. All that the court is concerned with is the balance in the current account at the instant in time when the freezing of the account takes place. If £2,000 is in the account at that point then you would be required to return to court to unfreeze this amount.

Thanks (0)