Debt Recovery

Unpaid debts affect you and your business, creating uncertainty and can even impact your ability to pay your staff or creditors.

Our debt recovery solicitors can provide you with cost-effective debt recovery solutions, supporting you in recoupling what is rightfully yours.

How our debt recovery solicitors could help?

At Farani Taylor, our debt recovery solicitors work diligently and efficiently to achieve the results you need. Our commercial debt recovery solicitors are fully supported by commercial litigation specialists, equipped to deal with complex and disputed claims, advising thoroughly throughout to optimize your chances of recovery. 

We understand the importance of rapid action and deal with each case in a responsible way, eliminating the stress of having to chase repayment. 

Contacting debtors and trying to obtain money owed to you can take up your time, preventing you from focusing your efforts on developing your business. When we take on your debt recovery, this not only releases pressure but also frees up your time so you can focus your efforts on your business. 

Contact our debt recovery solicitors at Farani Taylor today on 0207 242 1666 for a free, no-obligation discussion.

Our Debt Recovery Services

Our specialist debt recovery solicitors have advised clients on varying matters pertaining to debt recovery. From asset based financial disputes to large corporate affairs and private individuals, our debt recovery team are experienced in resolving matters quickly and efficiently, delivering outstanding results every time. 

Our debt recovery services include:

  • Business debt recovery
  • Debt recovery for private individuals
  • Debt recovery for financiers
  • International debt recovery

If you have a debt recovery matter not listed here, or require further advice or support, please get in touch with our debt recovery team for a free initial consultation. 

We always consider the financial implications receiving legal support can have on our clients. With this in mind, our solicitors assess every case on its own individual merit, ensuring every client receives optimum, tailored advice for their needs. Our solicitors will provide you with bespoke strategies but you will have full control over what action we take. Our objective is to recover the debt as quickly, efficiently and as amicably as possible. This not only protects your reputation but also keeps costs as low as possible. 

Our expert debt recovery solicitors are excellent at negotiating. They are extremely creative with encouraging debtors to pay, never pursuing legal action without your consent or without prior agreement to the associated costs. If you would like to discuss your debt recovery options or would like more advice on your matter, contact our debt recovery solicitors who will provide you with free, no obligation advice.

Debt Recovery Procedure in UK

The stages of Debt recovery in the UK are as follows: 

  • Letter Before Action

Prior to issuing any legal proceedings a letter before action (LBA) is sent to a debtor. An LBA is the first step towards recouping monies owed and often delivers an 86% success rate of payment at this stage.  

  • Legal proceedings

After sending a letter before action to your debtor, if you are yet to receive a satisfactory response, the next stage is to initiate legal proceedings through the County Court. A letter will be sent to the debtor from the court detailing that they have 14 days to settle the debt plus interests and added costs. 

  • County Court Judgment (CCJ)

If a debtor has defaulted on payments, a CCJ is a court order confirming this and will impact a debtor’s credit file. A CCJ enables you to take enforcement action in order to collect the debt. 

  • Enforcement

Once a County Court Judgment has been issued, you are then able to ‘enforce’ that debt immediately. At Farani Taylor our debt recovery solicitors will always advise you on the best course of action to take with enforcement matters, based on their experience and expertise with similar cases.

Insolvency Proceedings

Insolvency and debt collection

Debtors are deemed as insolvent if they fail to make payment on demand and the debt hasn’t been contested. 

If you believe a debtor may have other creditors attempting to acquire payment from them, initiating Winding Up Proceedings against a company or Bankruptcy Proceedings against an individual gives you the opportunity to be first in line for payment. 

You can commence insolvency action in the first instance by sending a Draft Winding Up Petition to a company or a Statutory Demand to an individual. On average 81% of cases are paid at this stage without further insolvency proceedings being required.

Our debt recovery solicitors can guide you through this process, acting and liaising on your behalf. For more information, please contact us for free, no obligation advice.

Proceedings

Company

For insolvency proceedings against a company to begin, the debt must be worth £750 or more and has to be undisputed. 

Our debt recovery solicitors can draft on your behalf a Draft Winding Up petition, accompanied by a letter to the debtor detailing the debt and requesting payment within a certain time frame. A warning is also detailed within the letter stating that if payment fails to be made, the petition will be presented to the Court. More often than not, matters are resolved at this stage as the debtor will want to avoid further court costs as well of the stress and inconvenience of having to attend. 

If payment of the draft petition remains unpaid or you have a County Court Judgment (CCJ), you can immediately proceed with presenting a winding up petition to the Court. 

The Court will complete the petition, detailing a date for a court hearing. The petition is then served to the debtor or company. 

The Court will finalise the petition, providing a date for a Court hearing. The petition is then served upon the company. 

Individual

In matters concerning insolvency proceedings against an individual, the debt must be worth £5000 or more and must be undisputed. 

The beginning phase of the process is to issue a Statutory Demand. This identifies the basis of the debt, providing the debtor with 21 days from service to pay. It will be required to be served personally on the individual and service evidenced. 

If the debt remains unpaid and undisputed by the debtor, the next phase is to issue a bankruptcy petition to the Court. The Court will provide a hearing date and the bankruptcy and petition should again be served personally, and evidence must be given to the Court. 

All formalities must be strictly complied with to successfully obtain an Order at the hearing of the Petition.

How much is a Debt Recovery Solicitor

A debt recovery solicitor’s fees will vary depending on the individual circumstances involved. If a debt remains undisputed and no further enforcement action is necessary, the fees to the debt recovery services will be considerably lower than if a debt is disputed or more legal processes are required.

Our specialist team will always advise you on expected costs, detailing any forecasted fees which may arise should a debt be contested. Our debt recovery solicitors will never implement action unless you agree and you will be notified of every matter concerning your case throughout. 

Contact our specialist team of debt recovery experts at Farani Taylor today on 0207 242 1666 for a free, no-obligation discussion.

What actions I should take if a client refuses to pay?
Open What actions I should take if a client refuses to pay?

Before taking a debtor to court or resorting to further debt recovery options, it is often worth sending one more letter to your debtor. The letter should detail the original payment agreement you had between you, clearly stating that you intend to initiate action if the debt remains unpaid. You should also clearly state a date by which payment needs to be made, informing them that they will be liable for further potential costs should the matter not be settled by the outlined date.

How long until a debt becomes uncollectible in UK?
Open How long until a debt becomes uncollectible in UK?

The majority of invoices and debts fall under the definition of a ‘Simple Contract’ in the Limitation Act. Under this Act, you have six years to commence legal action to recover the debt in England and Wales.

Will outsourcing my debt cost me more?
Open Will outsourcing my debt cost me more?

There are of course costs involved with outsourcing debts to a debt recovery solicitor, however, due to a higher level of success in collecting monies owed, you can actually end up saving money due to less bad debt and speedier collections. Utilising the expertise of a debt recovery specialist also frees up time and resources within your business that could be spent on other, more profitable areas.

Will using an external agency impact my relationships with my clients?
Open Will using an external agency impact my relationships with my clients?

Establishing positive relationships with your consumers is imperative for repeat business and future new business referrals and we understand the importance of minimising damage to these relationships due to debt recovery matters. 

In using an experienced third party to recover any debt, you are indirectly dealing with customers regarding the matter and this can be an excellent method to help maintain positive relationships.

Key Contacts

If you are looking for help and guidance or have a question relating to Debt Recovery, please contact us today on +44 (0)20 7242 1666.