Outstanding debts can severely undermine a business. If invoices go unpaid, or customers and clients fail to pay on time, it can destabilise a company, creating uncertainty, putting a strain on operations and impacting on cash flow.
If monies owed are not recovered quickly and efficiently, the results can be devastating, causing damage to a company’s reputation or even leading it to cease trading.
Here, our experienced Corporate Debt Recovery Solicitors consider what to do if you are owed money.
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Talk to them.
The first step in recovering an outstanding debt is to contact the person or company who owes you money. If letters or emails don’t get a response, try speaking to them over the phone or arranging a face-to-face meeting. If the debtor is unable to repay the debt in full, you could consider agreeing on a payment plan whereby they repay the money in instalments.
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Seek specialist legal advice.
If informal attempts to recover a debt are unsuccessful, you should seek legal advice from a solicitor specialising in debt recovery.
Numerous debt recovery options are available to individuals and businesses and a specialist debt recovery solicitor will advise you on the most appropriate steps are for your circumstances.
At Berlad Graham LLP, our dispute resolution solicitors understand how important it is to resolve such issues quickly and efficiently, and our pragmatic approach ensures that any disruption to your business is kept to a minimum.
To speak to one of our debt recovery lawyers, call us on 0330 175 5655 or click here to make an online enquiry.
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Letter before action (LBA).
In most debt recovery cases, the first step towards recouping monies owed is for your solicitor to send a letter before action (LBA) to the debtor. Also known as a ‘letter of claim’, this is a formal notice setting out the details of the unpaid debt and notifying the debtor that you will take legal action if payment is not received within a specified time.
A well-drafted LBA is effective in most cases, and usually no further action is required.
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Legal proceedings.
If you send an LBA to your debtor, but you do not receive a satisfactory response, your solicitor can then issue legal proceedings through the County Court.
County Courts can hear cases up to £100,000.
The debtor will be sent a court form requiring them to pay the debt, plus interest and costs, within 14 days.
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County Court Judgment (CCJ).
If a debtor defaults on payments, the next step is to apply for a County Court Judgment (CCJ) confirming that the debtor is liable to pay.
A CCJ enables you to take enforcement action to recover the debt.
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Enforcement action.
Once a CCJ has been issued, you can ‘enforce’ that debt immediately. Various debt collection and enforcement options can be considered, including:
- Enforcement via enforcement officers. Creditors can instruct a bailiff or High Court Enforcement Officer to visit the debtor and collect money or seize goods to the value of the debt.
- Attachment of earnings order. This is a court order that allows a creditor to deduct money from a debtor’s wages to the sum of the debt.
- Charging order. This secures a debt against a property.
- Bankruptcy proceedings. Businesses owed money may choose to start bankruptcy proceedings against an individual or organisation to recover the money they are owed.
Your solicitor will advise on the best way to proceed.
Debt Recovery Solicitors Uxbridge
At Berlad Graham LLP, our specialist debt recovery solicitors have extensive experience advising and taking action to recover money for businesses.
Our dispute resolution team understands how important it is to resolve such issues quickly and efficiently, and our pragmatic approach ensures that any disruption to your business is kept to a minimum.
Our commercial debt recovery team work closely with all of our clients to achieve the highest recovery rates and best possible outcomes.
We settle many cases quickly without the need for formal legal action, and where this isn’t possible, we’ll issue court proceedings and advise you on the best course of action to take.
Our experienced solicitors act in disputes arising either as a creditor or a debtor and can advise on all stages of the debt recovery process to bring proceedings to a successful conclusion.
To speak to our friendly, experienced, professional corporate debt recovery lawyers in Uxbridge today, please call 0330 175 5655 or email info@bglaw.co.uk. We can help with cases across the UK and/or in cross-border matters including the UK
