Debt Glossary : Distraint
Distraint is the process of seizing your possessions to sell at auction, and using the proceeds to clear debts. It is an option available to the tax authorities if other attempts to secure payment of tax debt has failed.
A tax officer will visit your home or business, and make an inventory of your possessions such as your car, electrical items, furniture and so on. Once this list has been made, you will be given a short time to clear your debt, before items on the list can be removed and sold at auction.
Items which can't be put on the distraint list include household items such as bedding or cooking equipment, your home, or items essential to the running of your business.
© 2008 Debt Sorter
