Distraint is an action that can be referred to as “levying distress”. It is an action available to trade creditors, landlords, HMRC or local councils. Distraint gives creditors the right to have goods removed from a debtors business premises and sold at auction to the value of what is owed. The procedure that a creditor has to follow differs depending on the type of debt. For example, HMRC and landlords can distrain without a court order whereas a normal trade creditor would need to obtain a county court judgement in the first instance.
