What is distraint orders?

Distraint orders are legal orders issued by a court that allow a creditor to take possession of a debtor's property in order to recover a debt. This can include assets such as vehicles, equipment, or inventory. The creditor must first obtain a court order to carry out a distraint action, and the debtor will be given notice of the impending seizure of their property.

Distraint orders are typically used as a last resort when a debtor has failed to pay their debts and other collection methods have been unsuccessful. The creditor must comply with the laws and regulations governing distraint actions, and the debtor may have the right to challenge the validity of the order in court.

Once the creditor has obtained possession of the debtor's property, they may sell it in order to recover the amount owed. However, the proceeds of the sale must be used to satisfy the debt, and any excess funds must be returned to the debtor.

It is important for both creditors and debtors to understand their rights and responsibilities when it comes to distraint orders, as the process can be complex and may have serious consequences for both parties.