The debt recovery process

At Ashtons Legal, we understand the impact a debt may have when it comes to cash flow and the uncertainty that arises when unpaid debts are still outstanding.

This is why we have an expert, dedicated debt recovery team offering a personal service to recover debts promptly and efficiently at minimal costs to you.

What is debt recovery?

Debt recovery is the process of recovering unpaid invoices from individuals or businesses that owe you money.

What is the debt recovery process?

Step 1 – Letter before action

The first step will be to send a formal letter before action to the debtor, which complies with the relevant pre-action protocol. Where the debtor is a business, they will have 14 days from the date of the letter before action to respond or 30 days where the debtor is an individual.

In our experience, the letter before action is an effective tool in getting a response from the debtor and starting a constructive dialogue for repayment of your debt.

Step 2 – Court proceedings or statutory demand

Should no response be received from the letter before action, a creditor has the option of issuing court proceedings. This will include filing a Claim Form and Particulars of Claim at the Court. The Claim Form will include a claim for the debt, court fees, costs, statutory compensation for late payment (where appropriate) and interest.

Assuming the claim is undefended, we will request and obtain Judgment from the Court. This Judgment can then be enforced against the debtor.

Should you require a Statutory Demand to be served on the debtor, this will fall outside our fixed-fee debt recovery service and be referred to our insolvency team.

Step 3 – Enforcement

There are several enforcement options available to creditors. The most popular method is the use of County Court Bailiffs or High Court Enforcement Officers. Either of these can be instructed under our fixed-fee debt recovery service. However, if appropriate, we can discuss alternative enforcement options and provide you with a quote for this as well.

Are there any restrictions to recovering debts?

Claims for the recovery of debts generally have a limitation period of six years. This means that if the debt is older than six years, a creditor will not be able to pursue the debtor for payment as it will be statute-barred, and the debtor will have a complete defence of the claim.

Notwithstanding this, a creditor does have further protection if a debtor acknowledges a debt or makes a part-payment. In those circumstances, the six-year limitation renews from the date of acknowledgement of the debt or part-payment pursuant to section 29(5) of the Limitation Act 1980.

A creditor can also protect its position, should it be nearing the limitation date, by issuing a claim with the Court and asking the Court to send the Claim Form and Particulars of Claim back to it in order to effect service on the debtor. Thereafter, a creditor will have a maximum of four months to serve the Claim Form and Particulars on the debtor.

What type of debts do we collect?

We specialise in collecting a wide variety of debts, including both individual and commercial debts.

For example, we collect debts for unpaid professional work, such as building works and unpaid invoices for the provision of goods and/or services.

Our debt recovery costs

We offer a fixed-fee debt recovery service, giving you confidence and cost certainty.

Contact our debt recovery lawyers today

For further information or an informal chat, please get in touch with Leah Newcombe on 01603 703234 or leah.newcombe@ashtonslegal.co.uk.