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At Franklins, our team of Debt Recovery solicitors has grown significantly over recent years to meet client demand, and our business clients regularly thank us for the efficient service we provide time and time again.
The success of any business depends on a strong cash flow system. Without it, you can run yourself in circles chasing late payments and eventually, it could stop your business from growing. Rather than remaining restricted, you will find that your business benefits from the services of a specialist debt recovery solicitor. At Franklins, our business clients put their Trust in us to recover the debts that are weighing them down, and we always deliver. With vast experience in the field of debt recovery, you can rely on us to put pressure on your customers without alienating them from your business.
When your business delivers a product or service to a customer, you expect to see the return somewhat immediately. However, when a customer fails to pay the amount they owe, it can be difficult to recover the debt without losing their business. With experience that spans the industries, our debt recovery solicitors are able to pursue debt tactfully, maintaining the relationship while helping you receive your well-deserved payment. As well as chasing a one-off debt, we can further assist you in setting up a system that clients commit to each time they must make a payment. Instead of spending your working days chasing customers for their due balance, let the debt recovery solicitors at Franklins help you to claim back what you rightfully earned.
There are 3 stages involved in the debt recovery process.
Firstly, we will draft a Letter Before Action to your customer which states the outstanding balance and the date it was due. This initial letter is sent directly from Franklins, gently warning the debtor that if the balance is not paid then court action will be taken. This independent communication should prompt your customer to pay the amount they owe.
If no payment is received and no contact made by the debtor to explain the situation, you may want to issue court proceedings against them. As your debt recovery solicitors, it’s our duty to then draft a Claim Form and Particulars of Claim, as appropriate, claiming the amount of money owed from the debtor plus any interest as well as a contribution towards your legal fees. This is then sent to the court for issue. The debtor then has 14 days in which to make the payment, or submit an Acknowledgement of Service, which will then give them a further 14 days by which to submit their Defence.
If the debtor still fails to pay after a further 14 days and no defence has been filed (or if the Judge finds against the debtor in a defended action) the final step is to issue a County Court Judgement (CCJ). Once Judgement is granted, this will appear on the debtor’s credit record. If after this, the debtor still refuses to pay, it may be necessary to enforce the Judgement.
There are several methods of enforcement. These are as follows:
Warrant of Execution
If a Warrant of Execution is issued, a court bailiff will trace the whereabouts of the defendant and make a visit to their premises to demand payment. Where payment is not possible, the court bailiff has the right to seize goods to the value of the Judgement.
Charging Order
If you choose to enforce the Judgement through a Charging Order, the court places a charge on the defendant’s property, similar to a mortgage. This means that if the defendant sells or remortgages the property, they will be forced to use a certain amount of the proceeds to repay the debt. If the defendant does not sell or remortgage the property, an Order for Sale may be applied for, forcing the defendant to sell the property and pay the balance owe using the sale proceeds.
Attachment of Earnings Order
If your debtor is an employed individual rather than a company, it may be possible to enforce the Judgement through an Attachment of Earnings Order. If this is the case, the debtor’s employer will be forced to deduct a certain amount from their salary in order to pay you back until the Judgement debt is satisfied.
At Franklins, our aim is to facilitate and promote the success of your business by tackling the obstacles that stand in the way. Rather than dedicating your time to chasing clients for payment, let the debt recovery solicitors at Franklins assist you through the process to ensure you get the money you deserve. To make an appointment, call our Milton Keynes office on 01908 660966
or to reach us in Northampton, call 01604 828282. Alternatively, you can fill in our short enquiry form and a member of our team will respond to you as soon as possible.
Our Debt Recovery team are dedicated to providing first class legal solutions in an efficient and cost effective manner.
If you’re having business disagreements and are in need of the best legal representation in the region, then give us a call on 01604 828270 or fill out our online contact form. Our specialist team of Litigation solicitors are always on hand to help.
Depending on the nature of the debt, it can on average take 18 months to recover debt. A business has up to 6 years to attempt to issue proceedings before the debt can no longer be collected.
Yes, if a debt isn’t paid then you have the right to take the debtor to court. The debtor has two weeks to respond to the claim, where they may dispute the claim isf they disagree with the amount owed.
The process varies slightly from business to business, but usually a business will send payment reminders, chasing the debt outstanding. If the payment isn’t made, they may send a letter advising of formal action. At that point the debt may be passed to a solicitors who will attempt to recover the debt. If that doesn’t work, then court proceedings may be the final option, where a county court judgment (CCJ) may be issued, impacting the ability of the company to get credit.
The steps to recovering a debt usually involve initially attempting to recover the debt by sending payment reminders, final reminders advising of court action and then the use of a solicitors and finally court action.
A company should seek to recover its debt by communicating with the debtor. Attempts should be made to agree a payment plan. If that doesn’t work more formal action should take place, including final warning letters, solicitors and court action.
Commercial debt recovery refers to the debt collection process between two businesses.
If you have any questions about debt recovery, please don’t hesitate to contact our team of experts who are on hand and ready to help you.
