Freezing Orders in the UK: How to Stop a Debtor Hiding or Moving Assets

A practical guide to Freezing Orders (Part 1) by Ian Coupland, Head of Litigation at Adam Benedict.

They have not paid, and now you suspect they are hiding assets.

It is everyone’s concern: you are owed a large sum of money, and the person or company who owes you the money appears to be putting funds offshore or hiding them away. Maybe they are selling property. Perhaps money is being transferred with a mouse-click. What if they disappear? How will you be paid then?

This is a worrying scenario for any creditor.

If you move fast, all is not lost. One of the law’s most powerful remedies is the freezing injunction. The Court can freeze an individual or corporate debtor’s assets so they cannot readily be dealt with or disposed of. A freezing order preserves assets so that you can pursue court proceedings and obtain judgment, and so that assets remain available for enforcement.

They have not paid, and now you suspect they are hiding assets.

It is everyone’s concern: you are owed a large sum of money, and the person or company who owes you the money appears to be putting funds offshore or hiding them away. Maybe they are selling property. Perhaps money is being transferred with a mouse-click. What if they disappear? How will you be paid then?

This is a worrying scenario for any creditor.

If you move fast, all is not lost. One of the law’s most powerful remedies is the freezing injunction. The Court can freeze an individual or corporate debtor’s assets so they cannot readily be dealt with or disposed of. A freezing order preserves assets so that you can pursue court proceedings and obtain judgment, and so that assets remain available for enforcement.

At Adam Benedict, we have many years’ experience of obtaining injunctions, including freezing orders, for our clients. We act in urgent High Court applications involving substantial sums and complex commercial disputes. You can read more about our specialist injunction services here.

What Is a Freezing Order or Freezing Injunction?

A freezing order is a form of injunction made by the Court to prevent a Defendant from disposing of or dealing with assets up to a specified value.

It does not determine the outcome of the underlying claim. Its purpose is protective. It ensures that, if judgment is obtained, there are assets available against which that judgment can be enforced.

Freezing orders are often sought where there is evidence that a debtor may transfer funds, move assets overseas, or otherwise frustrate enforcement.

Requirements for Obtaining a Freezing Order in England and Wales

The freezing order, requirements when making an application.

The first requirement is that, whilst the claimant cannot guarantee that they will succeed in their claim, they must explain the basis on which they expect to recover judgment. Court proceedings must be prepared by Counsel, who will present the application to the Court, and the claimant must promise to pursue the proceedings. The claimant must show that they have a good arguable case in relation to the dispute.

Second, the claimant must provide evidence that the defendant has assets in England and Wales. This may include land and property, bank accounts, shares, or other assets. The need is to show the Court that there is something on which the freezing order can bite.

Third, the claimant must satisfy the Court that there is a real risk that the defendant, or those acting on their behalf, may hide or dispose of assets so that it becomes much harder to enforce a judgment. There must be evidence of facts from which the Court can infer that assets are likely to be moved or improperly dealt with. Unsupported assertions or mere expressions of fear will not persuade the Court.

Fourth, the Court must be satisfied that it is just and convenient in all the circumstances of the case to grant the freezing order.

Fifth, the claimant must give a cross-undertaking in damages. This is a solemn promise to the Court that, if the freezing order turns out to have been wrongly obtained or has caused loss that should be compensated, the claimant will pay such sums. Normally, the claimant must identify assets available to support that undertaking.

Sixth, the claimant must comply with the duty of full and frank disclosure. This means being open with the Court about any weaknesses in their case or reasons why the Court might be less likely to grant the order.

Obtaining a freezing order usually involves a few days of intensive work by solicitors and Counsel, culminating in a hearing before a senior High Court judge. The judge must be persuaded that the particular facts justify the making of such an order.

What Happens After a Freezing Order Is Made?

On the first hearing of an application for a freezing injunction, the Court will normally make an Order which lasts for a short period, often around one week.

The Order must then be communicated to the Defendant and also to third parties such as banks who are known to hold the Defendant’s assets. During this period, the Defendant is usually required to disclose the nature and location of their assets.

A further hearing is then held at which the claimant seeks continuation of the injunction. The Defendant may, but does not always, oppose the continuation.

The case then proceeds through the normal litigation process until settlement is achieved or the Court determines the dispute.

Common Questions About Freezing Orders

In practice, when clients contact us about unpaid debts and concerns about asset dissipation, they often ask practical questions such as whether it is possible to freeze someone’s bank account in the UK, how quickly a freezing injunction can be obtained through the High Court, whether assets held overseas can be restrained, and what level of evidence is required before the Court will intervene.

These are legitimate concerns, particularly where there is urgency. The answers will always depend on the specific facts, but the key principles are outlined above. Early legal advice is critical where there is a genuine risk that assets may be moved.

Cost of a Freezing Injunction and Budgeting

William Shakespeare’s character famously observed, “The first thing we do, let’s kill all the lawyers.” It is often cited as an ironic expression of frustration with legal complexity and cost.

We are not going to pretend that obtaining a freezing injunction is inexpensive. It is usually only worthwhile where there is a substantial sum at stake.

Why are we saying this? Because we do not want to waste your time or ours.

We will always provide estimates of likely legal costs going forward. Our business model operates on the basis that each stage is pre-funded, with funds held in our client account until required. In this way, clients can keep track of ongoing expenditure and make informed decisions about strategy.

Is a Freezing Order Appropriate in Every Case?

No. Most disputes are not suitable for a freezing order. The requirements are strict, and the Court will only grant relief where credible evidence satisfies the legal test.

However, where there is a justified concern that a debtor is planning to dispose of or hide assets, a freezing injunction can be a highly effective protective remedy.

If you are facing this situation and are concerned that assets may be moved beyond reach, urgent advice should be sought. Our litigation team regularly advises on High Court injunctions and asset protection strategies.

Further information about our injunction expertise can be found here.