Debt Recovery – What is it?
Businesses, including companies, partnerships and sole traders, who issue invoices for their work or produce rather than getting paid up-front are potentially at a risk of non-payment by their customers. A good credit control process can encourage late payers to settle their outstanding fees. However, if, after a reasonable period of trying to secure payment, you remain unpaid, you may have need for a debt recovery process.
A debt recovery process would typically involve sending a final reminder letter to the debtor with a deadline for responding and threatening court action and other consequences such as enforcement action if no response is received. In some cases, it is appropriate to charge interest. A letter like this can often achieve better results when coming from a solicitor rather than from the business that the money is owed to. A solicitor’s letter can often be enough to persuade the customer to pay promptly, bringing the matter to a close quickly.
If the initial letter does not result in payment, a court action may require to be raised. If a decree for payment by the debtor is granted by the court, this may result in payment. If payment is still not made after receiving the court decree against the debtor, the decree can be enforced using methods such as a bank arrestment, earnings arrestment, arrestment in execution, inhibition or attachment.
How can we help?
At Macleod and MacCallum, our court department can help you with all of your debt recovery needs, from sending an initial letter, to raising a court action, to enforcing a court decree. The cost of debt recovery services will depend on how soon payment is made, how complex the circumstances are and how much resistance (if any) is met from the debtor. We are able to offer a fixed fee service for debt recovery up to the point of court action. Contact us for more information on our fixed fee service using our contact details below.
Tel: 01463 239 393