Recovering your debts
We recognise that keeping on top of debt collection is essential to the efficient running of any business.
Recovering your debts from existing clients or customers can be a difficult task.
You need to retain that working relationship with your customer yet they owe you money. Harrisons debt collection offers an effective method for recovering your debts at competitive rates. Our service is tailored to meet your needs.
We offer a full service for recovering your debts and can do so without endangering that business to customer relationship.
We offer a wrap around service linking with our Commercial Law Services team to ensure your terms and conditions under which you trade are fit for purpose.
We look carefully at the cost effectiveness of the recovery procedure and how we are adding benefit to your in house team. We can work with your team offering training to them to ensure that you can do as much of the recovery or as little as you want.
Recovering your debts – The Debt Collection Procedure
The majority of debts are now subject to the Pre action protocol for debt recovery set out in the Civil Procedure Rules. There are certain exceptions in particular sole traders but we will assess whether this applies and draft your letters of claim accordingly.
The general process is as follows
- issue a fully compliant letter of claim, this involves the threat of legal proceedings if the debt is not paid as requested
- if no payment terms are agreed or no response received issue court proceedings
- if no defence is submitted obtain judgement from the Court stating the amount inclusive of interest and costs ( if applicable) that is due
- enforce the judgment
Recovering your debts – Methods of enforcing the Judgment
We will tailor the method of debt recovery to the particular circumstances – where you have a concern that the debtor is at risk of bankruptcy ( if an individual) or liquidation ( if a company) we will assess that risk with you and take decisive action such as engaging the High Court Enforcement officer to attend the debtors premises to seize goods without delay.
If the debtor owns land or property we can discuss with you the benefits of securing a charging order which places the equivalent of a legal charge on the land to ensure it can’t be sold without reference to yourself.
If the debtor is working and has little else we can apply for an attachment of earnings order to secure payment direct from wages.
At every step we will assess the best option for you.
Recovering your debts – when defences are filed
We are able to continue our wrap around advice by referring any defended claims to our Dispute Resolution Department who will advise you on any potential defence or obstacle to recovering your debt.
We can offer our services either on a case by case basis (for one off or specific debts) or we can agree an annual retainer in respect of all debt collection for your business.