Being owed money can be a tedious, stressful occurrence for anybody who is unfortunate enough to be a part of it. It can affect all, from large companies to sole individuals, with amounts ranging from unpaid bills to unpaid wages.
We understand it can be a very stressful time for lots of people, especially when not having the knowledge or understanding of where to even start with legally recovering debts.
In this article, we have used our extensive knowledge and resources to highlight how we can aid those wanting to recover debts.
We have set out some key information, such as where to begin with debt recovery, how to navigate court proceedings and various methods of enforcement, along with some useful tips for those wanting to broaden their understanding of what their options are regarding debt recovery.
Debt Recovery – Where to begin?
Finding yourself in a situation of being owed money can be quite daunting and confusing for those who have never had dealings with this before. It can be difficult to navigate how to correctly yet efficiently deal with this.
Before instructing a Solicitor to attempt recovery, communication is always the best starting point, sometimes speaking with the debtor can help solve a dispute before it needs legal assistance to take over. However, when there appears to be little or no communications that is when the Claimant seeks legal advice as to what they can do, options available and also to take the stress out of their hands into a professional that deals with these types of matters on a daily basis.
We recommend that all Claimants keep copies of documentation such as invoices, bills and proof of attempts to contact the Debtor plus any responses they may have had. This makes matters clear and they are required should a Debtor dispute any of the amount duly owed.
We are available to initially discuss the matter over the telephone and explain how we can help the Claimant. Our contact details can be found on our website or, alternatively, at the conclusion of the article.
Pre-Court Proceedings
When instructed in a debt recovery matter, in attempts to recover a debt, we are required to send the Debtor what is known as a Letter Before Action. The Letter Before Action informs the Debtor that we are instructed to act and we provide a detailed correspondence explaining the amount of debt that is owed, why it is owed and provide a date in order for the Debtor to either contact us to discuss further or pay in full. We also are required to inform the Debtor that should our correspondence be ignored they are at risk of the Claimant wanting to proceed with Court Proceedings whereby they will be liable for fixed costs and the possibility of a County Court Judgment (CCJ).
In the event that the Debtor acknowledges our correspondence we would attempt to discuss the matter and resolve any disputed terms regarding the debt with the Debtor, having first obtained instructions from the Claimant.
Court Proceedings – A Breakdown
If the balance is not paid following discussions or no communications with the Debtor, we would then begin court proceedings.
Upon being informed that court proceedings have been issued against them, should the Debtor still ignore this, we are then able to request Judgment by default for the amount owed and including the court fee and fixed legal fee.
Interest can be added to the debt value when court proceedings take place.
Enforcement Methods
If the Claimant is successful in obtaining the Judgment, the Debtor is given one calendar month to repay the full Judgment if they want to remove the County Court Judgment against their name. If they fail to do this, the Claimant is able to enforce the Order.
There are several options a Claimant might want to discuss and possibly use – some of the options can involve us instructing the High Court Enforcement Agents or the County Court Bailiffs should the debt amount be lower than £500.00. We can also do an Attachment of Earnings against the Debtor, we would require their employment details. Another option may be to register a Charging Order against any properties the Debtor may have. Initially, we would need to check there are no other creditors to be paid first, should we proceed with an Order for Sale. There are several alternative methods of enforcement, all of which our Debt Recovery Team have extensive experience in.
For further information as to enforcement methods and our fixed fees here, please contact one of our offices to discuss.
Our Fees
Our fees for debt recovery are categorised based on the stage of proceedings and are dependent on the value of the balance owed.
For more information, please contact the Debt Recovery Team using the below details.
Contact Information
- Email: lilylammond@maxweb.co.uk
- Telephone: 0151 526 9321