When a debtor (Judgment Debtor, JD) fails to settle their debt despite a court judgment, the creditor (Judgment Creditor, JC) may initiate a legal action known as a Writ of Seizure and Sale (WSS). This article briefly explains the WSS process, types of assets that can be seized, and important considerations before proceeding.
What is a Writ of Seizure and Sale (WSS)?
WSS is a court order that allows a court officer (bailiff) to seize and sell the movable property belonging to the debtor (JD) in order to recover the amount awarded by the court.
Steps in the WSS Process:
- Obtain a Court Judgment: A valid court decision must exist against the JD.
- Apply for WSS at Court: The JC submits an application including details and location of the debtor’s assets.
- Pay Deposit & Appoint Auctioneer: Payment is required for enforcement costs. The JC must also appoint a licensed auctioneer.
- Seizure by Bailiff & Auctioneer: The bailiff, accompanied by the auctioneer, will go to the asset’s location to carry out the seizure.
What Kind of Assets Can Be Seized?
- For Companies/Businesses: Inventory, machinery, equipment, office furniture
- For Individuals: Vehicles, home furniture, electrical items, jewelry
Important Note: Certain basic items like clothing, essential work tools, and daily necessities cannot be seized.
Is It Worth It?
❗ Important considerations before proceeding:
- Asset Value: The assets may have depreciated and may not hold high value.
- Execution Costs: Court and auctioneer fees might outweigh the sale proceeds.
- Price Manipulation Risks: There are cases of collusion to artificially lower auction prices.
- Hidden Assets: The debtor might hide or relocate assets to avoid seizure.
- Limited Recovery: It’s often difficult to recover 100% of the debt.
The entire process may take around 3 to 5 months, depending on the complexity of the case.
WSS is a legally valid method of debt recovery, but its effectiveness depends heavily on the value, availability, and location of the assets, as well as the execution cost. Creditors are advised to conduct a realistic assessment before taking this step.