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Question: I do not live in the U.K but my debtor does, can you help?

Answer: Yes, so long as the debtor resides in the U.K we can help. You do not need to be a U.K resident to use our services.

Question: What are my options for ‘enforcing Judgment’?

Answer: The best method will depend on the defendant’s legal status (eg whether an individual or a company) and its financial circumstances. Your solicitor will be able to advise you on the most appropriate course. It is also possible to ask the court to order the defendant to attend court to provide information on their ability […]

Question: Does winning a court case guarantee payment?

Answer: No. When you win the court case (either because it is undefended or because a dispute has been resolved in your favour) you are awarded ‘Judgment’. But if the defendant still refuses to pay up, or falls behind in payments, you will need to attempt to ‘enforce Judgment’ through the court. There are a variety […]

Question: How should I prepare for a court case?

Answer: Get as much written evidence as possible, including evidence that you have tried to resolve the dispute. Doing this will help your solicitor understand the dispute, strengthen your negotiating position and improve your chances if the case does go to trial. Remember, evidence can include emails, photographs and so on.

Question: How difficult, expensive and time-consuming is the small claims procedure?

Answer: Using the small claims procedure to recover a disputed debt is usually relatively straightforward. You can get the forms you require, and guidance leaflets, from your local county court. The initial fee you pay depends on the amount you are claiming, and currently ranges from £35 (for claims up to £300) to £120 (for up […]

Question: Do I need a solicitor for a court case?

Answer: A solicitor is not normally required for a disputed claim in the ‘small claims’ track (and only very limited amounts of solicitors’ fees can be included in your claim). You may, however, want to consult a solicitor if you are unclear about the merits of your case, or to discuss other options. For larger claims, […]

Question: What legal options do I have?

Answer: The court procedure you follow depends on the amount of the debt. Generally, small to medium debts will be recovered through the County Courts. Larger claims will be pursued in the High Court. For disputed debts up to £10,000, the court case is allocated to the ‘small claims track’. This is a relatively simple, informal […]

Question: Does it matter whether the debtor is an individual, a small business, a larger company or a public sector organisation?

Answer: Generalising is risky, as every debtor is different. Issues to consider, however, include: Individuals and smaller businesses are more likely to suffer cash flow difficulties, and may therefore be unable to pay you even if you do win a court case. By contrast, the debts of most public sector organisations are ultimately guaranteed by the […]

Question: What should I do if the debtor claims I have not fulfilled the contract?

Answer: In a straightforward situation, you might have evidence that you have in fact fulfilled the contract – for example, a signed delivery note confirming that the correct goods were received on time and in satisfactory condition. Often, however, the evidence will be less clear cut. For example, there might be a dispute over the quality […]

Question: What evidence of the debt do I need to have?

Answer: Ideally you will have a written and signed contract. But you may have other documentary evidence – for example, a purchase order. You will also want evidence that you fulfilled your side of the bargain (eg a signed delivery note). It will be helpful if there is clear evidence that you made the customer aware […]

Question: What alternatives do I have before taking legal action?

Answer: Your routine credit control should include a series of steps to chase payments as soon as they become overdue – sending reminders, phoning the customer and so on. If this fails to get a satisfactory response, it may help to involve more senior people in the customer organisation. For example, you could send copies of […]

Question: How much does a solicitor charge?

Answer: A firm of solicitors that specialises in debt collection typically charges an hourly rate or a percentage of the value of the debt (typically around 10%), as does a debt collection agency. Costs depend on the size, age and complexity of the debt. One-off recoveries can be more expensive than if you regularly use the […]

Question: Will using a solicitor (or another third party) alienate my customers?

Answer: Not necessarily, as outsourcing of debt collection is common. However an aggressive solicitor, agency or factoring company can alienate customers. In the worst case, you could be liable if they use unlawful methods such as harassment.

Question: What other third parties collect debts?

Answer: As well as solicitors, another option is to use a reputable debt collection agency. For example, if you are in an industry where getting paid on time is a frequent problem, you might use a debt collection agency to collect late payments from all your debtors. However, debt collection agencies typically do not deal with […]

Question: When should I use a solicitor?

Answer: Using a solicitor can be a cost effective way of recovering debts. Many firms of solicitors specialise in this type of work and process large volumes of debts for their clients every month in a cost efficient manner. The customer may pay up straight away (or in instalments) once they hear from a solicitor. You […]

Question: Can I charge interest on overdue debts?

Answer: Your contract may specify a credit period and how interest will be charged on overdue payments. In addition, commercial debts are covered by the Late Payment of Commercial Debts (Interest) Act 1998. Where there are no written terms of credit, this allows interest to be charged at a set rate which is the Bank of […]

Question: What key factors determine how strong my negotiating position is?

Answer: Your position will be improved if the customer wants to continue doing business with you in the future, either because you have built a good relationship over time or because it will be difficult, expensive or disruptive for them to find an alternative supplier. Your negotiating position will also be stronger if you have ensured […]

Question: Should I be prepared to compromise?

Answer: There is no point in demanding immediate payment in full if the customer simply cannot pay. Negotiating part payment and rescheduling the debt – confirmed in writing – can at least help you recover some of the money you are owed, and improves the chances of maintaining a good relationship if the customer’s problems are […]

Question: How can I recover debts without alienating valued customers?

Answer: Take a diplomatic but firm approach. Discuss the situation with your customer, and try to resolve any problems so that you can reach an agreement. Explain what steps you intend to take to recover the debt, letting the customer know before you start any legal proceedings. Bear in mind, however, that customers who do not […]

Question: my debtor says he is only able to pay £1 per month as hes unemployed , what should i do about getting my debt paid

Answer: It is very common for debtors to plead poverty and plead that to the court to get the judge to agree on minimal payments, It must be remembered  that the modern court system is not just about obtaining financial  results to settle your debtors’ indebtedness it is also about making a statement to others  about […]

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