Debt Recovery
To protect your cash flow, your business needs to be able to collect what it’s owed. There’s a well-established legal process for it, and we can help at any stage.
How debt recovery works
Letter of demand
A legally sound letter setting out the details of the debt, a date by which it must be paid, and a warning that recovery action will follow if it isn’t.
Statement of claim
If the debt isn’t paid, court proceedings start with a claim. Which court depends on the amount owed, and the forms vary, so advice matters here.
The debtor responds
They may agree to pay by instalments, file a defence, or not respond at all, in which case judgment can be entered against them.
Enforcing the judgment
If they still don’t pay, the court has a range of ways to recover your money.
Ways to enforce a judgment
Seizing property
The debtor’s goods are seized and sold at auction.
Selling real estate
Land owned by the debtor can be sold to pay the debt.
Enforcement hearing
The debtor must attend court and explain their assets and liabilities.
Garnishee order
Part of the debtor’s wages, or money owed to them, is paid to you.
Bankruptcy
For individuals who can’t pay their debts.
Winding up
For companies that can’t pay their debts.
Is it worth pursuing?
We know what debt litigation costs, and we’ll tell you honestly whether it’s commercially worth going to court.
Stop it happening again
Clear contracts, trade agreements and terms of trade are the best protection against bad debts. We can review yours so you avoid long, costly proceedings in future.
Let’s talk it through.
Arrange a consultation with one of our experienced, friendly solicitors.