When faced with an outstanding debt, your initial reaction may be to decide to sue with legal action, and at the time it may seem like the only option available. However, with the ever-rising amount of commercial debt and Court recovery reducing, the idea to sue may be more important than you think.
One vital tool in debt recovery is Litigation but only when used correctly, and weighing up the costs.
The biggest concern for most clients is normally being concerned that they will be throwing good money after bad!
It is important to remember that spending some money in order to recover much more (a significant outstanding debt) is of course a good way to go. If you do not issue a claim the chances of recovery are very low and sometimes an initial letter to threaten to sue may work.
Another concern is what happens once a judgement has been obtained. There are several different things to consider, depending on your claim:
- Attachment of Earnings – Apply to have the individual debtor’s employer transfer a specified amount of their salary to you per month until the debt is paid. This is seen as a safe and easy way to use way of achieving payment
- Writ of Control – Instruct the High Court Enforcement Officer to give them their correct title. This remains one of the most efficient means of collecting a judgement, particularly against a company
- Warrant of Control – Instruct a bailiff. However, take into account the fee as it might not be worth it at all depending on the level of service delivered
- Charging Order – Apply to secure the debt over the debtor’s property. However, charging orders are not particularly popular anymore as the Courts view them as too aggressive
- Third party debt order – Apply to obtain an order against the debtor’s bank account so the bank pays the Judgement. Although, they are not considered straightforward or speedy to obtain
- Order to obtain information – Apply to send the debtor to Court to be questioned about their financial circumstances. This option is used when you don’t have any details about the debtor or are unsure of which method of enforcement to use
Next Steps
If you want to find out anything further about this topic then please feel free to call me on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email me vee@navigatebr.com.
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.
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