Commercial Debt Recovery

Our team offers a service tailored specifically to your needs from sending a letter of claim through to issuing and enforcement proceedings.

Explanation of commercial debt recovery options

• Recovery of debt
  
  
• Winding up and bankruptcy
  
  
• Seizure of goods/distraint

Recovery of debt

Letter before Action (LBA)

Letter to debtor formally requesting payment of outstanding invoice(s) within a specific time frame (usually 7/14 days).

Commencing County Court Proceedings

If the debtor fails to respond to the LBA, County Court Proceedings can be commenced.

Judgment

If the debtor ignores the County Court proceedings or fails to settle the debt following an admission, we can proceed with obtaining Judgment.

Enforcement

As Judgment can be enforced in a variety of ways, we will give best advice on the most suitable way of enforcing Judgment once it has been obtained. The options are:

• A warrant of execution can be issued and the Bailiff instructed to seize goods up to the value of the debt.
  
  
• If you are not sure whether an individual debtor has the means to pay, an application can be made for an Oral Examination and the debtor must complete a questionnaire detailing his financial circumstances.
  
  
• If you know the debtor’s bank account details, an Order can be obtained freezing the debtor’s bank account and ordering that any money in the account be paid directly to you.
  
  
• If the debtor owns property in which there is equity, you can make an application for an Order over that property.
  
  
• If the debtor is employed, you can make an application for an attachment of earnings Order whereby part of his earnings are deducted by his employer and paid directly to you.

Winding up and bankruptcy

Proceedings can be commenced for bankruptcy in relation to an individual debtor or to Wind-Up a company debtor.  These proceedings tend to be much more expensive than County Court proceedings principally because of the Court fee involved.  However, if the debt is not disputed and it is simply a question of the debtor being evasive and not wishing to pay the sum due, the issue of Bankruptcy or Winding-Up proceedings may prove to be more effective. In relation to both procedures it is usual to serve upon the debtor a Statutory Demand giving you 21 days to pay.

We will provide you with an estimate of the fees involved in taking the above routes.

Seizure of goods/distress

If you have effective retention of title of clause you can apply to Court for delivery up of your goods. Landlords of commercial properties can seize goods for outstanding rent.

For further information please contact Julian Ireland.

Please click here to download a copy of our Commercial Debt Recovery form.