Debt Collection
Cashflow is the lifeblood of any business, and when customers and clients don’t pay their debts, it places your business at risk. This is why it’s important to keep on top of debtors who are refusing to pay you. We can help with this; our extensive experience in this area means that we have the knowledge to act swiftly, and in the way most likely to succeed.
If you already have a retainer with us, we can do this as part of the retainer. For everyone else, we are usually able to work for an agreed 10% of whatever is recovered.
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Enforcement against individuals
In the UK, if an individual owes a debt and fails to pay voluntarily, there are several legal methods a creditor can use to enforce the debt. These vary depending on the size and nature of the debt, and whether a court judgment, usually a County Court Judgment or High Court Judgment, has been obtained.
The first step is to send a letter before claim. Often, if these are correctly worded, it is enough to make the debtor pay up. If they don’t then we can apply for a County Court Judgment on your behalf.
For most individuals, a CCJ is enough to make them pay - no one wants that on their credit history. For the few that don’t, we can ask the court to instruct bailiffs, or High Court enforcement officers. Alternatively, we can seek an order securing the debt against the debtor’s home, and later potentially an order for that property to be sold. In extreme cases, we can ask the court to order that bank accounts are frozen, or begin bankruptcy proceedings.
Enforcement against businesses
Enforcing debts against businesses shares similarities with enforcing against individuals, but there are important differences, particularly depending on the business structure of the debtor, e.g. sole trader, partnership, or limited company.
The first step is to issue a letter before claim, which we can draft for you. If that doesn’t work have the desired effect, then we will apply to the court for a County Court Judgment or a High Court Judgement, depending on the size of the debt.
After that, we can instruct High Court enforcement officers to seize sufficient goods and assets to pay off the debt. After this, a Writ of Control will allow those goods to be sold at auction. If there are no goods to be seized, then we can apply for an order freezing the accounts of the business, and requiring the bank to pay the money you are owed to you. Alternatively, the debt can be charged against any property owned by the business.
The nuclear option, which really focuses minds, is to initiate insolvency proceedings. This involves issuing a statutory demand, requiring payment within 21 days. If the debtor doesn’t comply, we can apply for a winding up order, which leads to the compulsory liquidation of a limited company, or bankruptcy for sole traders and partnerships. Obviously, this really makes a debtor sit up, and they will usually come up with the money.
to discuss how we can make this headache go away.
FAQs
Q: What are my options if a client won’t pay?
A: We offer a staged approach—starting with letters before action, progressing to court claims if needed. Most debts are resolved at the early stages with the right legal pressure.
Q: Can you help enforce a court judgment?
A: Yes. If you win a claim but the debtor still doesn’t pay, we can instruct bailiffs, seek charging orders, or explore other enforcement options