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Recovering Debt

Article from the Ascot Lawyers Debt Recovery Team

Getting customers to pay their bills can be troublesome at the best of times, but as the current economic instability deepens more and more businesses are finding their cash flow is being restricted through unpaid bills. Many businesses also find that unpaid bills are their biggest unrealised asset.

It is an unwelcome reality that if your business is not being paid, there is a reasonable chance that your customer has not paid bills to other organisations who will also be chasing for their debt. It is therefore necessary for most businesses to take a firm approach with their customers rather than waiting for payment and being seen as the "soft option".

The involvement of solicitors in Debt Recovery will often result in the customer paying faster than they might otherwise pay if the business continues to chase the customer alone. A letter from a solicitor demonstrates that the business is not making idle threats. In the minds of many debtors this will change the perception of the unpaid bill from "one that can wait" to "needs urgent action."

"A letter from a solicitor demonstrates that the business is not making idle threats."

In the first letter to the debtor, Ascot Lawyers, make them aware of the type of legal action that will be commenced if the bill is not paid and the methods of enforcement available. We are conscious that for many businesses their customers may provide repeat business and it is essential therefore that a firm but fair approach is used.

Quite often the issuing of proceedings will be sufficient for the customer to pay the debt, or at the very least to enter into a meaningful dialogue with regards to settling the debt. If however a judgment is obtained, the customer will find that their credit rating is affected and that the judgment will remain on record for six years unless paid within 28 days.

There is a wide range of options available to a business in securing payments of its debts which go far beyond the often perceived view of a heavy footed bailiff. Options available include, instalment agreements or instalment orders, attachment of earnings orders, return of goods, through to securing the debt against the customer's property or bankruptcy and insolvency proceedings. Of course if necessary and appropriate a writ or warrant of execution may be issued to allow Bailiffs or High Court Enforcement Officers to seize and sell the debtor's moveable property.

For debts in excess of £750.00 a relatively simple and effective approach may be to issue a statutory demand for payment. If payment is not then made, the non payment of the debt may be used as evidence that the debtor cannot pay debts and bankruptcy or insolvency proceedings can be commenced.

It is imperative that businesses give consideration to their customer. The appropriate method of chasing the debt, the legal action and subsequent enforcement will be different for an individual than it will be for a limited company. Furthermore the chances of a recovery and therefore the viability of different actions will vary from customer to customer. In any event, in the current economic climate and for any business where cash flow is a priority, time is of the essence. Delaying taking the necessary action in chasing a debt could mean the difference between being paid in full and not being paid at all.

Ascot Lawyers are experts in Debt Recovery, please call us on 0845 300 3574 and one of our experienced team can help you.

Meet our Debt Recovery solicitors and team Contact our Debt Recovery team Main Debt Recovery section

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