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
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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.