Expert Debt Legal Advice For Business Debt Recovery
Debt Legal Advice: What you need to know about debt recovery
Unpaid debt causes significant cash-flow problems for all businesses and can create disputes which negatively impact business dynamics. 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, whether it is a small debt recovery claim or a significant amount of money.
LawBite’s Debt Recovery Legal Advice: How to recover your owed debt
There are a number of ways you can get debt legal advice in order to recover money that is owed to your business.
If your business is owed money by others, LawBite’s expert Dispute Lawyers are available to give you the best debt legal advice and guide you through your options regarding debt recovery.
At LawBite, we understand that legal action to recover debt needs to be affordable, efficient and effective which is why our expert dispute lawyers and solicitors are ready to step into action to provide their expert knowledge and debt recovery legal advice to help you ensure you know your legal options to recover money.
What Does LawBite’s Business Debt Recovery Process Look Like?
Whether your business needs advice for a small debt recovery or is owed a significant amount of money, LawBite’s expert Dispute Lawyers are available to give you the best expert debt legal advice and guide you through your options regarding your business debt recovery process.
Below are the steps our lawyers may take you through during your business debt recovery process. If you have any questions or want to find out more about our legal support services for debt collection, contact us
Letter Before Action
Before you begin any legal action to recover debt, there are several actions you can take to give you the upper hand during the business debt recovery process. You can read more about our pre-litigation debt recovery tips
in our blog.
A Letter Before Action is always the first step and precedes any legal proceedings. The letter formally sets out the details of your debt collection 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 for Business Debt
When you take legal action to recover debt, your claims are heard by a county court. The business debt recovery process here tends to be more streamlined and with cheaper court fees compared to the High Court. At LawBite, our professional lawyers can support your small business with debt recovery in the UK by helping you prepare your claim for the Small Claims Court.
The Small Claims Court deals with claims under £10,000 in value. If your claim is more than £10,000 in value, we can support you with alternative legal action to recover your debt.
Defend a claim at a Small Claims Court Trial
If you are the recipient of 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, and make the most of your case. LawBite’s expert lawyers will help you try and resolve the matter through negotiation
or business mediation
, or appear on your behalf in Court. Find out more about how we can help you manage your business disputes
Chase a judgement through enforcement
If you win a judgment but the other side refuse to pay the debts you are owed, LawBite’s lawyers and solicitors can offer you further legal advice on debt recovery and help you to get the debtor summoned to appear in Court to be questioned. This may prompt a payment, or could even consider sending in bailiffs to seize and sell the company’s goods, for judgments up to £5,000.
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 give you debt legal advice on how to help you issue a Petition, which will be 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 allow you to have a small debt recovery, if there is enough to go round to pay all creditors involved.
How Long Before a Debt is Written Off?
If you are looking at business debt recovery in the UK, in most cases of unpaid debt the money is written off after six years. This is not the case for all debts as some have varying limitation periods, but if you use LawBite for legal advice on debt recovery, our expert lawyers will be able to advise on when the debt will be written off.
However, it is important to understand that if your business is owed money, once the time limit has passed the debt still exists, although it is no longer enforceable so court action cannot be taken against the debtor. Even though the debt is statute-barred, you can still contact the debtor to attempt to recover your debt if you don’t operate under FCA (Financial Conduct Authority) guidelines.
The business debt recovery process can be complicated, which is why it is important to seek debt legal advice in order to have the best chance of getting your money back. Get in touch with us today to find out how our friendly lawyers can offer you debt collection legal advice.
LawBite - Smarter Business Law
At LawBite, 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.
LawBite online lawyers and online solicitors provide expert legal advice on all commercial and business matters including small business debt recovery. Book a no-commitment 15-minute call with our friendly lawyers today, join LawBite for free or make an enquiry
to learn more.