Debt Recovery - what you need to know
Unpaid debt causes significant cash-flow problems for all businesses.
No one wants to spend their time chasing invoices instead of growing their business. However, owed debt is a reality that most companies have to contend with. When a business is owed money there are a number of ways that legal help can provide valuable assistance in recovering this debt.
At LawBite, our expert dispute lawyers and solicitors are ready to step into action to provide their expert knowledge in debt recovery for businesses.
How to recover your owed debt
If your business is owed money by others there are a number of ways you can go about recouping your debt.
There are several legal ways you can act and our expert Dispute Lawyers are always available to guide you through your best options.
Letter Before Action
A Letter Before Action is always the first step and precedes any legal proceedings. The letter formally sets out the details of the claim:
- An explanation of the basis on which the claim is made
- A summary of all facts relevant to the claim
- Details of exactly what you are seeking as claimant from the defendant
Submit a claim to the Small Claims Court
These are heard by a county court. The process here tends to be more streamlined and with cheaper court fees compared to the High Court. The Small Claims Court deals with claims under £10,000 in value.
Defend a claim at a Small Claims Court Trial
If you receive a claim it is important that you act quickly and do not ignore it. We can help you respond to the Court within the 14 day time limit, make the most of your case, help you try and resolve the matter (through negotiation or business mediation) or appear for you in Court.
Chase a judgement through enforcement
Sometimes you can win a judgement, but the other side doesn’t pay it. If that happens we can help you ensure that you recover your debt by having the debtor summoned to appear in Court to be questioned, which may prompt a payment, or even (for judgments up to £5,000) consider sending in bailiffs to seize and sell the company’s goods.
Issue a winding-up petition
This is a device that can be used when an insolvent company fails to repay a debt of more than £750 which has gone unpaid for at least 21 days. We can help you issue a Petition, following which it is advertised in a publication called ‘the Gazette’. Unless the Winding up Petition is successfully opposed the Company can be compulsorily liquidated. This will bring the company to an end and its assets will be liquidated for the benefit of all those it owes money to. This may help recover your debt, or part of it, if there is enough to go round to pay all creditors involved.
LawBite - Smarter Business Law
We believe that great legal advice is a fundamental business right. We are committed to providing your business with expert legal advice that is:
- Easier to access
- Clearer to understand
- More affordable
Many businesses find traditional law cumbersome; complex to navigate and often full of hidden charges. Therefore, it is no surprise that SMEs instinctively turn to LawBite to solve their business legal problems, giving us a 98% service rating on feefo.
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