debt recovery

C L Law Solicitor is a specialist in debt recovery. Broadly speaking, there are three stages involved:

The correspondence stage
This involves one or more letters to the debtor designed to make it plain that the matter has reached a critical stage. It is always hoped that this action will bring about payment or that it will flush out any issues between the parties that can be resolved with further correspondence.

The court action stage
If the debt remains unpaid then court proceeding will normally be the next step. This involves the preparation of a court claim form that sets out the details of the case. A court fee must now be paid. The court fee together with a contribution towards legal costs may now be added to the amount of the debt.

The court will process the claim form and it will then be served on the debtor. The debtor will then have a short period of time in which to challenge the claim or to make an offer of payment. If there is no action by the debtor then a court judgment can be automatically applied for.

The receipt of the court judgment is very important as this can become a matter of public record that can seriously affect the debtor’s ability to obtain credit. This in itself can often be the catalyst for payment.

The enforcement stage
Court judgments are not enforced automatically. There are however a number of ways in which payment might be recovered. In brief these can include:

• court bailiffs or enforcement officers can be instructed to visit the debtor in order to take the debtor’s property. This can then be sold so as to pay the debt
• a court order can be made requiring the debtor to come to the court to provide evidence as to his finances
• a court order can be made whereby instalment payments are taken directly from the debtor’s pay by their employer
• placing a Charge on the debtor's house or property
• seizing part or all of the debtor’s bank accounts
• commencing insolvency proceedings