Few things rattle a business owner like discovering their accounts have been frozen by court order. A freezing order (sometimes called a Mareva order) can stop you moving money or dealing with assets — and in some cases can reach your business operating account, not just the funds in dispute.
What a freezing order actually does
A freezing order is designed to preserve assets so that a future judgment is not rendered worthless. It does not decide who is right. It is a holding measure — often granted urgently and, at first, without the other side being heard.
Why the first 48 hours matter
Two things are usually true at once: the order is causing real commercial damage every day it stays in place, and there is a narrow window to respond properly. Acting quickly and correctly can mean the difference between a short disruption and a frozen business.
- Read the order carefully. Its exact terms define what you can and cannot do — including any allowance for ordinary business expenses and legal costs.
- Do not breach it. Breaching a freezing order is contempt of court, with serious consequences. If the terms are unclear, get advice before you act.
- Preserve everything. Keep records and avoid any dealing that could look like dissipating assets.
- Move to vary or set it aside. There are often strong grounds to have an order narrowed (for example, to release an operating account) or discharged — but they need to be put properly and promptly.
The goal
The objective is to get you trading again with the least possible disruption, to manage any funds genuinely in dispute sensibly, and to limit your exposure to the other side's costs. That requires moving fast and putting the right argument the right way.
If you have been served with a freezing order, treat it as urgent and get advice immediately.