Solicitors for Debt Recovery

Debt Recovery

For debts of £100,000 or below please see our detailed guide here which sets out the procedure and timetable we will follow as well as our fixed costs in acting for you to recover payment of uncontested debts. The easiest way to instruct us is to complete this form here and send it to litigation@grantsaw.co.uk

Why (or when) someone would need this service?

To take legal advice to recover payment of a debt that is due. This firm regularly acts for individuals and companies in recovering payments of debts that are due to them.

How does the process work/what are the steps?

The first step is usually to send the debtor a letter of claim on your behalf and to require that such sum is paid within 30 days.

If the debtor fails to pay within this time period, we will discuss with you how you wish to enforce payment. This could be by either commencing court proceedings in order to obtain a Judgment from the Court. Alternatively, if the debt is not disputed it could be enforced by serving a Statutory Demand on the debtor (which will avoid the need to issue court proceedings). Please see our detailed guide here which sets out the procedure and timetable we will follow as well as our fixed costs in acting for you to recover payment of uncontested debts.

By serving a Statutory Demand you will be commencing insolvency proceedings which may ultimately result in an Order from the Court that the debtor is declared bankrupt (if an individual) or the debtor is wound up (if a company). To avoid such a situation occurring the debtor will be required to pay the debt owing. For further information concerning serving a statutory demand on a business or company please see our separate page here: https://grantsaw.com/services-for-business/corporate-insolvency/statutory-demands-for-business or for guidance on issuing a winding up petition on a company please see our separate page here: https://grantsaw.com/services-for-business/corporate-insolvency/winding-up-petition

What are the things people should consider before calling?

It would be helpful if you could provide us with a copy of the invoice rendered by you when you first instruct us.

Furthermore if the debtor has previously refused to pay and has provided an explanation for this, then please inform us of the reason for the debtor refusing to pay.

We may have to correspond with the debtor if the debt is disputed before any claim is issued.

The easiest way to instruct us is to complete this form here and send it to litigation@grantsaw.co.uk

How long does it take?

If court proceedings are issued which are uncontested, then we will be able to request that the court enter a County Court Judgment on your behalf within 14 to 28 days after the proceedings have been served on the debtor.

If the court proceedings are contested, then the normal time period by when the claim will be listed for trial is between 12 to 18 months from the issue of proceedings. However, the vast majority of cases do settle prior to trial on terms which are negotiated between the parties.

If the Statutory Demand route is taken, the debtor will have up to three weeks from service of the Demand on the individual or company to make payment of the debt. If the debt is not paid within this time frame and remains undisputed, you will be entitled to either issue bankruptcy proceedings where the debtor is an individual or a Winding Up Petition where the debtor is a company. A court hearing will be listed to consider the bankruptcy of the individual or the insolvency of the company normally within a two month period from the issue of the Petition.

Is it expensive? What are the likely costs?

Our costs of acting on your behalf to recover uncontested debts owing to you or your business of £100,000 or less, we provide a fixed fee service. Please see our detailed guide here which sets out the procedure and timetable we will follow as well as our fixed costs in acting for you to recover payment of uncontested debts We will provide you with an estimate of costs at the outset once we have been provided with details of the debt outstanding.

Debt recovery tips

We would suggest that prior to entering into contractual relations with a client that you do undertake some due diligence. For instance you may wish to consider obtaining company accounts to establish the financial standing of the company before agreeing to undertake work for them
Alternatively if your client is an individual you may wish to consider undertaking a credit search against them to check on their credit status