What Will Happen If A Third Party Claims The Goods on Which A Levy Has Been Made?

Sherforce Enforcement Officers always make enquiries about the ownership of goods before levying on them. However it does sometimes happen that they are later claimed by a third party and the debtor is not the owner of the goods. The third party will be asked to put their claim in writing saying who they are, listing the goods they claim and providing evidence of ownership. You will be sent a copy of that claim and you will be required to reply to Sherforce within 7 days of receiving the claim as to whether you accept it or you dispute it.

It is important they you follow the guidance here by your Client Relationship Manager because if you do not reply in that time then Sherforce is obliged to make an application to the High Court asking the judge to make a decision about the ownership of the goods. These are what are termed as “Interpleader Proceedings”. It is important to remember that Sherforce itself does not determine ownership of goods on which it levies that is the matter for the Court.

If you are convinced that the third party does indeed own the goods then you should let your Client Relationship Manager know so that Sherforce can withdraw from possession of the goods claimed (which may not be all of the goods) and the Walking Possession Agreement in respect of those goods will then be terminated.

If however you are not convinced that the Third Party's claim has any merit and that they do not own the goods then you should discuss this with your Client Relationship Manager as it will mean that Interpleader Proceedings will have to be issued to determine who owns the goods and whether execution against those goods can continue. You should be aware that Interpleader Proceedings can be very costly and your Client Relationship Manager will help you on making that decision before the application is issued to the Court.

Occasionally Sherforce will itself decide that it wishes to make an application to the Court to prevent any action being taken against it by a third party which it is entitled to do. Again in those situations which are rare then your Client Relationship Manager will contact you to explain the reason why Sherforce has decided to take this course of action.