Debt Recovery Law & Lawyers

Debt collection is a legitimate and necessary business activity where creditors and collectors are able to take reasonable steps to secure payment from consumers or businesses who are legally bound to pay or to repay money they owe.

It is important that any organisation involved in recovering debt is aware of their legal obligations.

If you need legal help regarding debt recovery, please complete your free legal enquiry form on the right, or click here.

Debt Recovery lawyers generally have experience across all aspects of recovery and enforcement, with particular expertise in:

• letters before action
• issue of Court claims
• enforcement of judgments
• issue of statutory demands
• bankruptcy proceedings
• winding-up proceedings
• Other debt recovery action

A further alternative is to issue a statutory demand promising an application to court for the formal winding-up of the debtor's business/company if payment is not made within 21 days.

Finally, you could consider the following forms of dispute resolution:

• Negotiation
• Mediation
• Conciliation
• Arbitration

If you need legal help regarding debt recovery, please complete your free legal enquiry form on the right, or click here.

Debt Collection Guidance

There are various ways of getting your debtors to pay on time.  However, despite your best efforts, you may find that some still end up paying late.

If this happens, you should get in contact with them to resolve the issue and review your procedures to reduce the possibility of customers paying late again in future.

Note that you have rights under the late payment legislation to charge:

• Interest
• Debt recovery costs
• You can exercise these rights at your discretion

Your choice may depend on who the debtor is, the size of the debt and how late the debt is.

As referred to above, the Debt Recovery Stages include:

• Letter before action
• Issue legal proceedings
• Judgment / enforcement
• Bankruptcy / winding up

Letters Before Action - Letters of Demand

Letters Before Action or Legal Letters of Demand are very cost-effective. They are used to secure payment, or to obtain a response from your customer before the commencement of a claim.

Debt recovery Lawyers

In the current economic climate it is only natural if your business is feeling the pinch. Your bank may have withdrawn your overdraft facility and you may be experiencing pressure to pay up from your own suppliers. The fact that your clients may be struggling as well only makes it more important that you consult a debt recovery lawyer as early on as possible.

If you need legal help from a debt recovery lawyer, please complete your free legal enquiry form on the right, or click here.

Why use a debt recovery lawyer?

Pursuing debt is obviously important for maintaining sufficient liquidity especially in the current economic climate. Small debts can quickly become something more substantial making it important to use a debt recovery lawyer.

You also need to demonstrate to other debtors that you’re willing to take action. Before consulting a debt recovery lawyer, it is a matter of balancing this against the consideration of maintaining a commercial relationship.

Debt recovery lawyers are not your only option. At the other end of the spectrum are organisations that do the work in bulk without really providing any advice. Where a debt recovery lawyer adds value is in suggesting credit management, assessing the recoverability of debt and in continuing to act if proceedings become contested after the making of a court statement of claim.

What debt recovery lawyers can do

A debt recovery lawyer will begin by sending the other party a pre-action letter such as a legal letter of demand. If this does not resolve matters, then there are two options: either to go through court or to serve a statutory demand as a precursor to bankruptcy or winding up.

If you need legal help from a debt recovery lawyer, please complete your free legal enquiry form on the right, or click here.

What to look for in a debt recovery lawyer

We recommended using a debt recovery lawyer who is robust and able to deal with information and court deadlines promptly. It is also important that they are someone you feel comfortable with and who are easy to contact.

If you need legal help from a debt recovery lawyer, please complete your free legal enquiry form on the right, or click here.

Debt recovery solicitors should also understand the commercial reality of the situation and appreciate that it is about recovering money quickly and cost-effectively.

As you are instructing a firm of solicitors and not simply a debt collection company, your debtor will know you mean business.

How you can assist your debt recovery lawyers

Good preparation for meeting debt recovery lawyers can result in money savings. Coming with a chronology of events and a bundle of relevant documents can be useful for debt recovery lawyers.

What your debt recovery lawyer should be able to tell you

People are more cost sensitive these days and your debt recovery lawyers should be able to give an estimate at an initial meeting. However, the time it ends up taking a debt recovery lawyers depends on whether you get a positive response to the letter they initially send.

If you have a debt recovery matter and need legal help from a debt recovery lawyer, please complete your free legal enquiry form on the right, or click here.

Further Resources - Debt Recovery Law & Lawyers