Freezing orders can be used to stop debtors from spending or
hiding assets which are under claim.
This Brief Counsel discusses how and when they can be an option
in litigation and the benefits they offer the claimant.
A claimant should consider seeking a freezing order where the
defendant:
- has committed some form of fraud or deceit (or there is strong
evidence to suggest they have)
- has started selling off major assets
- is based overseas or is a flight risk, or
- is experienced and sophisticated in the use of trusts,
corporate structures and other mechanisms for dealing with
assets.
Freezing orders sit alongside a court claim for debt or damages
and are usually made without notice to the defendant. These orders
typically stop a defendant from shifting assets off-shore or from
disposing of, dealing with, or diminishing the value of, those
assets pending the outcome of proceedings or enforcement of
judgment.
