Whats is debt recovery?
Debt recovery is the process of making a person or a company pay the money that is owed to another person or company when the debt has not been paid back in the time which had been arranged. When issues such as this arise it is usually best to instruct a professional debt recovery company to recover any monies owed.
Should I use a solicitor to recover debts?
Using a solicitor can be a cost effective way to recover debts. At MTA Solicitors we specialise in debt recovery for both individuals and businesses. Debtors are also most likely to pay straightaway or in installments once they are approached by a solicitor. As partners of Positive Collections, we are able to use a simple 3 step procedure to help ensure that all monies owed are paid. With your go-ahead, we also have the authority to proceed to court should your debtors fail to pay after the 4 letters have been issued.
Does it matter whether the debtor is an individual, a small business or a large company?
Regardless of the size of the company or the individual you should always pursue your debt recovery case because it can often have a knock on effect which can often have a negative impact on you and your company. Late payments and outstanding invoices can cause your company to have poor cash flow, unable to pay your own bills and invoices and in some cases shut down. It is important to note however that:
- individuals and smaller businesses are more like to suffer cash flow difficulties due to tighter budgets and other companies or people failing to pay them.
- sole traders are personally liable for their own debts
- large organisations may use their financial strength to withdraw future business and even routinely delay payment. However, bad publicity can be crucial to businesses operating in the public sector.
Whoever your debtor, we can help you recover all monies owed to you.
How much does it cost?
Positive Collections offers a completely FREE credit control system with absolutely no hidden costs or extras. The debt recovery process which consists of 4 letters/stages costs a one off fee of just £4.99 which covers you for all 4 letters. If you manage to receive the money owed to you before the last letter(s) are sent, this one-off fee still applies. If you would like to opt for the fast track process a one off fee of £10 is required. However, if it becomes necessary to issue court proceedings other fees will incur. For a breakdown of fees simply click here.
How long do I have to recover outstanding debts?
A creditor has 6 years from when the debt was due to start proceedings to recover most debts.
What is the legal procedure for recovering debt?
- Letter and telephone calls before action
- Issuing a Claim Form - entering judgement
- Enforcement of judgment
- Preparing and serving Statutory Demand
- Winding up of limited company
- Bankruptcy of individual
- Tracing debtors
What is the fast track process?
This debt recovery process is ideal for historical and undisputed debt. In order to opt for this service, you will need to prove that previous efforts have been made to recover the amount owed. Please note that if the debtor has refused or contested the payment, the fast track process will not be suitable. If you are legible for the fast track option, your debtor will have 10 working days to clear the debt. Failure to pay will result in an automatic court issue for proceedings on the 12th working day. Please be aware that if your debtor pays within the 10 working days you will need to notify us in order to stop further actions. Simply call us on 0208 313 7887
to do so.
Can interest be recovered?
Once court proceedings have been issued we will make a claim for interest. Any interest claimed will be paid back to you including any other monies recovered on your behalf.
Who controls the debt recovery process?
With Positive Collections, YOU are always in control and have the ability to stop the debt recovery process at any time. With necessary court proceedings, you will be given 7 days notice before any court proceedings are issued. Please note that proceedings are only issued with your full agreement including your understanding of any costs involved. If you wish to stop the process at any stage simply push the 'stop' button on your account.