If you're reading this you're probably wondering how you're ever going to recover debts from unwilling debtors. Recovering debts is never an easy step for many businesses to take because of how time consuming it usually is. This is why we have issued out clear and easy steps to recovering your debts. After reading this, you will know the necessary steps to take when looking to recover your commercial debts.
Businesses face a unique challenge when it comes to cash flow during the months of December and January as many companies close their doors between Christmas and New Year's Day, so payment of invoices are often not processed until mid to late January. This delay in payments can put a huge strain on businesses that have to pay tax, VAT and rent during this period.
When customers do not pay your invoices, it can be difficult to know how to proceed. If your pre-action correspondence has not resulted in payment, it is usually worth taking legal action to ensure your company is paid. Let's take a look at how legal debt recovery works.
You get to the end of your credit control procedure and you still have some unpaid accounts, so, what are the options?
Usually when a company owes a debt, their creditor can file court proceedings against them in the hope that they will pay – and use a method of enforcement to recover the money if not. However some circumstances, such as a debtor refusing to engage, make this method of debt recovery an unsuitable option. This is where strong action is needed: A Draft Winding Up Petition (WUP).
Sometimes a debtor will change address without notifying creditors, leaving those creditors feeling pretty helpless as far as debt collection goes.
As a creditor it might seem like they have gone for good, but remember: nobody really disappears off the face of the earth.
When you're in business a bounced cheque or direct debit can feel like a major blow. However, it's not all bad news… That's because the payment failure represents solid evidence, not only that you are owed money, but also how much.
Debtors are becoming more sophisticated in avoiding enforcement of a debt. This is partly due to the exchange of information through some online forums. However, there is always a solution to every problem. There are many enforcement options, one of them being a Third Party Debt Order, formerly known as a Garnishee Order. Here, we focus on the pros & cons and other relevant details of Third Party Debt Order.
The Ministry of Justice have confirmed that following a debate in the House of Lords on 20th July 2016 and the swearing in of the new Lord Chancellor, Elizabeth Truss, there will be an increase to some Court fees from 25th July 2016 following the approval of the Civil Proceedings, First-tier Tribunal, Upper Tribunaland Employment TribunalsFees(Amendment) Order 2016.