We recognise that keeping on top of debt collection is essential to the efficient running of any business.
Recovering your debts from individuals, existing clients or customers can be a difficult task.
You may need to retain that relationship with the individual or the customer yet they owe you money. Harrisons debt collection service 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 if required 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.
Debt Recovery – The Debt Collection Procedure
The majority of debts are now subject to the Pre action protocol for debt claims set out in the Civil Procedure Rules which changes the way in which formal demands for debts are made from individuals and sole traders. There are certain exceptions in particular business to business debt unless the debtor is a sole trader but we will assess whether this applies and draft your letters of claim accordingly always bearing in mind that if the Pre action protocol is not complied with it could have severe consequences for your claim.
The general process is as follows:
- issue a letter written in accordance with the new rules of claim attaching all necessary compliance enclosures, 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 then depending on your instructions issue court proceedings
- if no defence is submitted obtain judgment 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 collaborative 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.