Whether it is a small sum of money from an individual, or dealing with high-value commercial litigation, we can provide comprehensive advice on the best course of action for recovery.

Some of our clients’ frequently asked questions about debt recovery are below:

“I just have the occasional debt. It’s too much of a hassle to collect.”

The problem with letting the occasional debt go is that it will often send out the wrong message to debtors. While flexibility is required in most businesses, being seen as a “soft touch” is likely to be detrimental in the long run.

With DJP Solicitors’ cost-effective options for debt recovery, why take the risk of letting it go?

“I have a number of debts to collect, but I don’t have time to do it.”

No problem – let us handle it. From initial letters to court proceedings and ultimate recovery, we will diligently pursue debtors on your behalf.

“What initial steps can be taken to recover a debt?”

The initial step is usually by writing to the debtor, making it clear that if payment is not made, the matter will proceed to court, and they will be responsible for the resulting interest (which in the absence of any other agreement is at the judicial rate of 8%) and expenses.

A letter from a solicitor in these terms is often a sufficient threat to persuade a debtor to pay in full, or at least propose an acceptable payment plan.

In certain cases, steps should be taken to “secure” a debt. For example, if a debtor was selling his house, steps could be taken to prevent the sale of the house until the debt was paid. If there is a danger of money in a known bank account being transferred to another location, steps can be taken to “ring fence” the money while the debt is being pursued.

If the debtor is a company, in certain circumstances there is a “fast track” procedure which can be used, so that in the event that a letter demanding payment is not responded to, the company can be liquidated after 21 days.

“What happens if a debtor does not respond to a letter?”

If we have written, and the debtor does not respond, you have the option of court action to recover your outstanding debt. This is often very straightforward – if there is an admission that the debt is correctly due, there is little that can be done to defend the action, and decree for the sum due, together with interest and expenses should pass.

On obtaining decree, there are a variety of options open for recovery if the debtor will still not pay. Goods can be uplifted and sold, money can be uplifted and bank accounts can be arrested. Companies can be liquidated and individuals can be sequestrated (made bankrupt). As with any legal process, there are procedures which require to be followed, and we can ensure that recovery is done legally, quickly and effectively.

Of course, in some cases it will be counterproductive to go to court, and in every case we will give appropriate advice tailored to the particular circumstances.

“My debt is against an individual. Can I still recover it?”

Yes – these debts are enforceable in the same way. However, while there is no defence to an action for a debt which is admitted to be due, an individual has options to delay payment of the debt.

A Time to Pay Direction can be applied for where the debt is under £25,000, and in submitting this to court, the debtor effectively asks the court to allow instalment payments, or additional time to pay the full sum. If a Time to Pay Direction is granted, the decree is unenforceable as long as the debtor keeps to the terms of the arrangement. If a debtor misses three instalment payments, the Time to Pay Direction can be set aside, and the decree enforced as if it did not exist.

“Can I claim my expenses?”

The general rule in litigation is that expenses follow success, and debt recovery is no different. However, in many cases the expenses will not cover the cost of a solicitor, particularly when the action is a Small Claim (up to £3,000). Accordingly, the smaller the debt, the more attention must be paid to the prospects of recovery.

“What services do you offer which are different from a debt collection firm?”

A debt collection firm can write letters and threaten court action, which may persuade some debtors to pay. From those debts which are paid, a percentage is likely to be deducted before the remainder is remitted to the client.

As a firm of solicitors, we can offer the full range of recovery services – from letter-writing, court action, and all other forms of recovery, such as arresting sums of money or even liquidation. We don’t take a percentage –  our fees will be clear before any work is done on your behalf.