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Freezing Order

The term ‘freezing order' or 'freezing injunction’ (formerly called a mareva injunction) applies to a court order that is taken out with the sole purpose of stopping a party from dealing with their assets until otherwise instructed.

This type of order is usually made when a business enters proceedings related to debts and liquidation, if a creditor believes that the business may dispose of its assets before a judgment can be enforced. The freezing injunction can be sought at any point during these proceedings, and even after the judgment has been obtained. The order can be granted against any assets held by the recipient business and is especially effective when dealing with alleged fraud cases. Freezing injunctions can also be made against overseas parties in certain situations.

In each case, the court will look carefully at the following points before granting a freezing order:

→ The English court must have jurisdiction

→ The Applicant must have a legal right to ask for such an order to be granted

→ The Applicant needs to display that there are sufficient assets to make the order beneficial

→ It must also be proven that there is a real chance that these assets may be disposed of before the judgment is made

→ The Applicant must also agree to pay damages to the business if it is proved later that the injunction was incorrect.

The court will put a ‘balance of convenience’ in place, which means that all relevant factors are properly considered before making a judgment. Any lengthy delay when making or responding to an application will have a negative effect on the chances for a successful intervention or defense.

Injunctions are urgent and time consuming, if you are in receipt of a freezing order or you’re considering issuing proceedings, it is essential that you obtain immediate advice from a specialist legal adviser. At My Insolvency our legal advisers have considerable experience in dealing with injunctions from both sides.

Depending on the particular circumstances of your case, and the validity of the claims being made you may also need to consider whether there are broader implications for the future viability of the company that also need to be explored. Contact one of our legal advisers or send an email now to