Do the bailiffs have to release the car after the statutory declaration, or can they keep it impounded?

The suspension of the enforcement power means the bailiff cannot take an enforcement action, including selling the car

However, the debtor should allow the council to mitigate damages^[1] by offering them the chance to return the car; otherwise, your damages for the deprivation of its use will continue if the TE9 or PE2 application is allowed by the court.^[2][3]

^{[1] Civil Procedure Rule 44.3

[2] Section 3 of the Torts (Interference with Goods) Act 1977

[3] Paragraph 66 of Schedule 12 of the Tribunals Courts and Enforcement Act 2007.}