Debt Recovery Solicitors
Unpaid debts can have a significant impact on both personal finances and those of a business, creating stress and uncertainty. We are expert Debt Recovery Solicitors, handling all types of Debt Recovery cases and achieving results quickly and efficiently.
What is the Debt Recovery process?
The Debt Recovery process depends on each individual situation, but generally the stages are as follows:
- Send a Pre-Action Letter of Claim – We will send this letter to the debtor on your behalf, informing them of the amount they owe, how and when to make payment and the consequences if payment is not made
- Issue Court Proceedings – If the above letter receives no response, we will issue Court proceedings against the debtor
- Obtain a County Court Judgement (CCJ) – this legally binding document sets out how the debt should be repaid and when by
In the majority of cases, a Debt Recovery letter from a solicitor is enough to encourage payment, and we can provide a simple, straightforward service to do this.
Please call us now on 01603 672222 for a no-obligation conversation today or Click Here To Make An Online Enquiry. Read More 🞃
How much does the process cost?
It depends on your particular situation and we will ensure to work on a cost effective basis that makes it easier for you to instruct a solicitor to deal with this on your behalf. If you would like to find out more information about the costs involved, please give us a call.
What if a debtor just does not pay?
If a County Court Judgement (CCJ) is obtained on your behalf but the debtor still does not pay, there are a number of enforcement options, including:
- Deducting the money from the debtor’s wages
- Charging Order against property
- Instructing a High Court Enforcement Officer to carry out the Debt Recovery
Should I use a Debt Recovery Solicitor or a Debt Collection Agency?
A Debt Collection Agency actually has no more legal powers than you do. They pursue the debt through a series of letters, phone calls, emails and sometimes text messages. A percentage of the debt will be deducted to cover their fees and commission.
Instructing a solicitor is often more effective because the debtor will know that non-payment will then progress to legal proceedings. A solicitor will charge you fixed fees and not deduct any commission.
If the Debt Recovery process proceeds to Court action, there may be additional (fixed) costs, but your solicitor will advise you of these in advance.
Can I charge interest or claim compensation on an unpaid debt?
The Late Payment of Commercial Debts (Interest) Act 1998 does allow you to add interest or claim compensation from businesses with late unpaid invoices. This legislation is not valid with personal debtors. This means the matter will proceed as a Civil Dispute and we can advise of the standard procedures and follow with these.
This entitles you to charge 8% interest plus Bank of England base rate on overdue B2B (business to business) debts. The amount that you can recover in compensation depends on the amount owed and the number of outstanding debts.
If you would like further advice on this, please contact us.
What if the debt is disputed?
If your debtor disputes the amount you are demanding, or believes they owe you a different amount, we will work with you both to understand the situation fully and try to negotiate an agreeable solution. This means the matter will proceed as a Civil Dispute and we can advise of the standard procedures to follow with such matters.
If you need help with Debt Recovery and Enforcement, please call us now on 01603 672222 for a no-obligation conversation today or Click Here To Make An Online Enquiry.