Legal debt collection is something no business should ever have to face. If you find yourself in the uncomfortable position of requiring legal advice to recover debts, don’t despair. Our debt recovery team can guide you on the legal process of collecting a business debt, helping you steer clear of cash flow issues and uncertainty. Here’s how we do it.
Step 1: The Letter Before Action
A letter before action is the first step in collecting a business debt, and it’s an incredibly effective way of doing so. The letter before action should be sent to any debtor before legal proceedings begin. We suggest giving the debtor a time period of seven days in which to pay their debt. Often, this is all it takes to secure payment and resolve the case.
Step 2: The Claim
If a payment is not made following the letter before action, proceedings will be issued through the court. We’ll manage this process for you, notifying the debtor of their outstanding debt and the interest and costs owed. Alternatively, insolvency action can begin at this point.
Step 3: The Decision
The next step is the acquisition of a county court judgement, confirming the debt that is owed and the fact that payment is yet to be made. This judgement serves as the court’s final decision and empowers your business with the right to enforce debt collection. The debt will also be noted on the debtor’s credit record.
Step 4: The Resolution
If, following the court’s judgement, the debt is still yet to be paid, then enforcement can legally take place. This will often involve either a Bailiff or a High Court Enforcement Officer, who will collect a debt on behalf of your business. Our experienced debt recovery team will be on hand to guide you through this process, and offer our recommendations on the best enforcement methods.