What is debt?
Debt is a sum of money that is owed or due. When an individual, business or organisation borrows money or purchases goods, they enter into an agreement to repay that money by a due date. If they fail to pay, that becomes a recoverable debt.
If you are owed debt, you need that sum to be recovered as quickly and cheaply as possible. As all business owners know, cash is king and cashflow is the lifeblood of any business.
Pursuing unpaid debts can be time-consuming and frustrating but don’t give up. Our debt recovery specialists in Stoke-on-Trent can help recover money that you are owed.
We take pride in the fact that our clients view us as a seamless extension of their credit control teams, trusting us to handle situations sensitively and appropriately. Get in touch to discuss how we can recover the money you are owed.
Head of Debt Recovery
Talk to us about:
- Pre-action protocol letter and issue of proceedings
- Statutory demands
- Bankruptcy and winding up
- Defended actions
- Credit control
Our debt recovery solicitors have a high success rate regarding all types of recovery; this may be an unpaid invoice or a loan to a family member. Remember, before considering writing off a debt, we are happy to discuss passing this debt over as a percentage recovery. If successful, our costs would be deducted and the remaining balance placed against your bottom line.
View our range of fees.
Pre-Action Protocol Letter
To start any debt recovery, we will first need to assess all your supporting documentation, including your terms and conditions, purchase orders, signed delivery notes, invoices and communications between your credit control department and the debtor.
Once this evidence has been collated, we can send a pre action-protocol letter in compliance with all court rules.
It is vital that the pre-action protocol is complied with to avoid delays and penalties later down the line. The aim is to encourage early engagement and communication, avoid court proceedings if possible, and, if litigation is unavoidable, ensure matters can be dealt with efficiently.
If a pre-action protocol letter is sent to a limited company, they are allowed 14 days to respond. If the debtor is an individual, they are allowed 30 days.
An early debt is much easier to recover, so don’t delay if you are owed money.
If you do not receive a response to a pre-action protocol letter, you have the option of sending a statutory demand before any court proceedings are commenced.
For debts over £750 against limited companies or £5,000 against individuals, a statutory demand for winding up pursuant to The Insolvency Act 1986 can be served, provided you have received no reply to your pre-action protocol letter and there is no dispute over the debt.
It is vital that any business has a full and robust credit control system in place. We can help you set up procedures for customer credit checks, the identification of customers, establishing your terms and conditions of trading, your payment terms, your credit control procedures including letters and emails, and your telephone calls processes.
We can come into your business for a half or full-day to review your documents and carry out training with your credit control team.
Your questions... answered
Am I entitled to interest on recovered debts?
Hopefully, these will have been incorporated within your contract through y
Can the debtor offer to pay the debt by instalments?
Yes, a debtor can offer to pay a debt by instalments. This is done by the d
How can I get customers to settle unpaid invoices?
Most businesses experience problems getting paid on time by their customers
Is it worth trying to chase unpaid debts?
Absolutely, to avoid you spending lots of time chasing unpaid debts, it is