FAQs about Debt Recovery
North London Debt Recovery FAQs
Is it always worth pursuing a debt?
There is no simple answer to this question. It all depends on the size of the debt itself, the attitude of the debtor and their past behaviour, the chance you will get the debt back, the debtor’s counter-claims (if any) as well as your own attitude towards litigation. If it would cost in legal costs to claim the debt back, it might not worth be the hassle of making a claim. However, it could be the case that the debtor has persistently caused you trouble and you want to put a stop to it. Or perhaps there is a whole multitude of debtors you have been causing you problems and you want to make an example of one debtor to improve your chances of getting your money back from other debtors as well.
Will I have to go to court to get a debt back?
It’s difficult to say. It depends on the size of the debt, the debtor’s willingness to negotiate and how “mature” the dispute over the debt is. If you catch a dispute in it’s early stages, there is a higher possibility that the dispute will be resolved out of court. If the debtor is willing to negotiate, you might be able to negotiate a repayment schedule (although it may be necessary to write off part of the debt to make this possible). In our experience letters of claim and even statutory demands can be extremely useful in prompting the debtor to act and come to a settlement out of court.
If the debt is quite “mature” and the debtor is uncooperative, it may be necessary to go to court.
What is a statutory demand?
Statutory demands are standard documents which are sent to the debtor to request payment of a debt. They give the debtor a choice to either pay back the money within 18 days, respond to the claim or put in a counter-claim within 21 days.
When should a statutory demand be used?
A statutory demand should be used where:
- The debt is larger than £750
- You are prepared to initiate bankruptcy proceedings against the debtor if they do not pay
What if I use a statutory demand outside of these circumstances?
It is difficult to say. However, using a statutory demand without the intent to it up with bankruptcy proceedings may be more trouble that it’s worth. In future, the debtor may call your bluff and overlook your demands for repayment altogether. The only other option may entail going to court.