Debt Recovery Action - Our Panel of Experts

Debt recovery action refers to the process by which creditors pursue the collection of unpaid debts from individuals or businesses. When someone owes money to a creditor and fails to make payments according to the agreed terms, the creditor can take several steps to recover the debt.

Debt recovery solicitors are legal professionals specialising in facilitating the recovery of unpaid debts on behalf of creditors. They leverage their knowledge of debt collection laws and regulations to guide creditors through the process. Responsibilities include negotiating with debtors, sending formal notices, and pursuing legal action when necessary. Solicitors draft pre-action letters, provide legal advice, and, if required, initiate lawsuits to secure court judgments for outstanding debts.

If you are in search of experienced commercial debt collection professionals and services, then please get in touch with Expert Commercial Law today. Our team can put you in touch with the most relevant and appropriate legal expert for your case to assist in recovering debts and keep legal fees at a minimum.

What is debt recovery action?

Debt recovery involves a series of steps and procedures that creditors follow to collect money owed to them by debtors. The process can vary depending on the type of debt, the amount owed, and the specific circumstances. Here’s an overview of the debt recovery process in the UK:

Communication and Reminder Letters:

• Initially, the creditor contacts the debtor to remind them of the outstanding debt, usually a statutory demand. This often involves sending reminder letters, emails, or making phone calls.

Formal Letter Before Action (LBA):

• If the debtor does not respond to reminder letters or is unable to resolve the issue, the creditor may send a Letter Before Action. This letter outlines the debt, the total amount owed, and a specified deadline for payment, usually within 14 days.

Alternative Dispute Resolution (ADR):

• Before pursuing legal action, parties may consider alternative dispute resolution methods, such as mediation or arbitration, to resolve the debt issue amicably.

Legal Action:

• If the debtor does not comply with the LBA or ADR attempts fail, the creditor can take legal action to recover the debt. For debts under a certain threshold (usually around £10,000 or less), the creditor may file a claim in the small claims court. For larger debts, the creditor can initiate legal proceedings in the county court or high court. A CCJ is a court order than can be used to force the debtor to pay the debt.

Obtaining a Judgment:

• If the court rules in favor of the creditor, a judgment will be issued. This judgment outlines the debtor’s legal obligation to pay the debt.

Enforcement Action of the Judgment:

• To recover the debt, creditors can use various methods, including: warrant of execution, attachment of earnings, charging order, third-party debt order and insolvency proceedings.

Collection Agencies:

• Creditors may also hire debt collection agencies to recover the debt on their behalf. These agencies may use various methods to encourage payment, including contacting the debtor and negotiating repayment plans.

How can Expert Commercial law assist with debt recovery action?

Expert Commercial Law has a panel of debt recovery solicitors comprising law firms with credit control and debt recovery teams. Most of the firms on our panel will offer a debt collection service on a fixed fee, hourly rate, or conditional fee agreement. This will be discussed at the outset of your case. We have extensive experience in case management for our clients.

We are not a firm of solicitors; we have a panel of commercial law solicitors. If you contact us in relation to a commercial law case, whether you are looking for formal legal advice or cost-effective assistance on your case, we will pass your case on to a panel firm.

Our panel can also assist with commercial issues such as business energy claims, shareholder disputes and contract disputes.