Methods of recovering debts
If you are owed money, whether as an individual or a company, there are various way that you can recover the sums due to you.
Effective recovery of debts, whether as an individual or company, is key. If allowed to slip, it can result in serious consequences and financial loss. It is important to manage unpaid monies by taking a strict approach in respect of payment terms. We appreciate this can be sensitive particularly with closer relationships, long standing clients or customers, but that is why proper advice is important on the options available to you to recover unpaid monies, depending on your business needs.
You may be able to commence a Court claim to obtain a judgment against the person or entity to owed you money, to include interest and costs.
- If the debtor has an asset such as a property, you may be able to seek a charge over the property so that you are paid the debt together with accruing interest upon sale. You may be able to force the sale of the property depending on the circumstances.
- You can apply to make an individual bankrupt, or wind up a company by placing it in to compulsory liquidation.
- You can send in bailiffs to the address of the debtor to force collection of the debt. The bailiffs have the power to seize control of the debtor’s belongings to the value of the debt.
- If the debtor is an employed individual, you can seek that the employer deducts money from the debtor’s salary to be paid directly to you by way of instalments to settle the debt.
The above is not an exhaustive list but are some of the options available to enforce an unpaid debt and reduce bad debt. We consider that it is important to assess your individual or business needs, and the debtor’s worth before you embark on any form of litigation. If you are unsure of your debtor’s worth, we can assist in the investigatory stages and advise on the most suitable options for you. We recognise the importance of approaching debt recovery with a commercial mind, and costs proportionality in sight at all times.
Bankruptcy and Insolvency
Whether you are owed money either by; a company, professional body or individual, Edwards Duthie Shamash Solicitors can assist you to recover that money using the most cost effective solution for you. The remedies available to you could range from a deduction from the debtors salary, to obtaining a legal charge in your favour over any properties/assets held by the debtor and therefore a consequent order by the Court to sell the property.
We can also assist you to serve a Statutory Demand against an individual or company and thereafter commence bankruptcy proceedings or winding up proceedings against the company.
Bankruptcy is a specific legal process when a court declares that an individual is insolvent and can no longer pay off their debts. The individual must owe a minimum of £5,000, and either upon the petition of the court or the individual’s own petition, the Court orders that the individual is bankrupt. It involves serving the individual with a Statutory Demand which entitled the person to a period of time to pay the monies due. If the individual fails to pay, you are entitled to commence a Court application to declare them bankrupt. The service of a Statutory Demand is a powerful tool. It often prompts a debtor to pay in order to avoid the serious consequences of bankruptcy which can affect their credit record.
You may also be able to adopt a similar procedure if a company owes you money. If they fail to pay the money due to you once you have served them with a Satutory Demand, you will be entitled to apply to the Court for an order to wind up the company and terminate their existence and ability to continue to actively change. This is a robust and severe step to take.
Our Dispute Resolution team can advise companies, directors and individuals who are in financial difficulty. We have the necessary skills to act robustly for the recovery of monies or alternatively, we can reach a more amicable resolution depending on the circumstances of the case.
Why choose Edwards Duthie Shamash?
Edwards Duthie Shamash Solicitors recognise that not every client wishes to engage in heavy litigious and costly recovery procedures. We can tailor our advice to your needs and help you to determine the most suitable remedy for insolvency and debt recovery. We have specialist lawyers with many years of experience dealing with insolvency and debt recovery. If you need help we will be pleased to discuss your situation in confidence.