Debt Recovery

DEBT RECOVERY SOLICITORS NORTH LONDON

North London debt recovery solicitors approach debt recovery & collection by assessing a number of factors including :-

  • Whether the debtor can’t pay or won’t pay
  • Is the debtor claiming a defence or making a counterclaim ?
  • Is the debt clearly documented and the opponent’s legal status clear i.e  is it clear whether the debt is owed by a company, partnership, individual or other legal entity
  • The value of the debt. Is it below the small claims threshold of £5,000.00
  • Would the threat of winding up/bankruptcy increase the chances of recovery

Tackle debt recovery in the right way…

In a society where credit has (until recently) perhaps been far too easy to obtain, debt has exploded.  There are literally thousands of debt recovery agencies out there.  However, in common with many of them, is their usage of a standardised “one size fits all” approach, which may not be relevant for you intentions and may decrease your chances of successfully recovering a business debt.

With a solicitor, you can be assured of a bespoke approach to debt recovery.  Is the debtor a valued customer?  No problem, we can use diplomatic, but firm means to try and retain the customer and get back the debt.  Is one particular debtor proving difficult to deal with and repeatedly refusing to pay back debts?  No problem, we will advise you on all the options available and take the most aggressive stance legally possible, and if necessary, represent you at court hearings and advise on the most appropriate and likely to succeed enforcement methods.

Minimising the necessity for litigation…

Litigation is the technical term for a legal dispute ultimately determined by the court system.  It can be expensive and waste time that could be better used to grow your business.  With this in mind, we try to minimise the necessity of litigation.  In our experience, many debts can be recovered by prompt and well considered tactical action.  Letters from solicitors tend to prompt the debtor into taking action as the possibility of court action happening is thought to be higher when a solicitor is advising a creditor. It shows the creditor is serious about taking action.

Debts of all types and sizes…

We have experience of dealing with debts of all shapes and sizes.  We can:

  • Handle off-one debts
  • Handle a large portfolio of debts
  • Send the debtor letters of claim
  • Advise you on the merits and demerits of using statutory demands
  • Advise you on taking action through the County and High Courts
  • Assist you in enforcing court judgements through using:
    • Attachment of earnings orders
    • Charging orders
    • Third party debt orders
    • Court bailiffs

Providing you with value for money…

We provide you with value for money by providing a bespoke, consultative and professional service that ultimately delivers results – your money back.

We may be able to recover your debt on a fixed fee basis.  Please contact North London Solicitors for further details.

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.

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