Legal options for debt recovery

Introduction

At CP Law Associates, our specialist debt litigation team is on hand to recognise that cash flow is a highly important component to the operational success of any business and therefore, recovering any outstanding money quickly and efficiently is crucial that’s why we are on hand to provide you with the legal options for debt recovery.

If you are a business owner and chasing payments for unpaid invoices then it is vital that you are able to access lawful action where needed to recover the amount owed. Below we will discuss the legal options that you have available for debt recovery.

Our debt recovery services

We specialise in the following areas to help you with debt recovery:

– County Court Proceedings including; Debt collection letters, pre-action collection, issues of proceedings, defended action, high court enforcement

– Credit management which includes late payment demand

Pre legal debt collections and recovery

Legal action should be seen as the absolute final step when it comes to debt collection. It is important to note that there are other alternatives to consider before going down the legal, court action route for debt recovery. 

This first step is known as the pre-legal approach. In many cases, the authority that CP Law Associates have is enough to encourage borrowers to pay, but our expert team have years of knowledge to be able to deal with the host of excuses and avoidance that may crop up during this approach. Because of this we are usually able to discuss an immediate payment or a future payment plan with the borrower.

Court action route

At CP Law Associates, we don’t believe this to be the first port of call and most of the time we are successful during the pre-legal debt collections and recovery stage. However, if the first stage is unsuccessful then we are able to escalate matters to court action.

Firstly, we will issue a letter before action. The letter before action will give the debtor a set deadline to pay by before the legal procedure continues to the next phase.

What if the payment isn’t made? If the letter before action is unsuccessful, we then move to the formal legal claim and will then instruct one of our experienced litigation solicitors to begin issuing a claim for you. The litigation team will be able to prepare the claim form, evidence pack and particulars of the claim on your behalf and then consequently submit these to the court.

Bankruptcy Proceedings

If the debt owed is more than £5,000 you may be able to then commence bankruptcy proceedings against an individual. This process may also be used in certain circumstances as an alternative to County Court proceedings. The first step in this process is to serve a statutory demand and the debtor has 18 days to apply to set aside the statutory demand. The court can then list a hearing and if all requirements of the petition and the filing requirements of all additional documents have been met and there is no opposition to the petition the debtor can be declared bankrupt. Read more on our Bankruptcy services here

If you are getting increasingly frustrated by an outstanding debt then CP Law Associates are here to assist you in receiving a positive outcome and committed to doing the chasing for you.

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Contact us today for a free, no-obligation quote.