Once your LBA or Late Payment Demand has expired and the debtor has failed to repay the debt in full or in accordance with an agreed repayment schedule, we may advise that you should commence legal proceedings to recover the debts.
When should you commence legal proceedings?
Commencing (issuing) a Claim against a debtor may be recommended because:
- It has impact and will often evidence your intention to recover the debt;
- The claim can include interest, legal costs, commission or contractual costs, or late payment compensation;
- It requires a response from the debtor, if no response is received by the Court then default judgment can be entered;
- Once a Judgment has been entered, the necessary and appropriate enforcement action can be undertaken;
- The debtor is subject to the Court timetable if they wish to dispute the claim, which does not allow for delay or avoidance by the debtor.
If a claim is to be commenced, we have a panel of local and regional law firms which we will recommend you use to issue your claim. They will apply reduced / fixed rates with the aim of providing a professional cost-effective service. When issuing a claim you will be able to claim for the debt, accrued interest and compensation, plus any contractual and fixed legal costs.
When issuing a claim the aim will be to get prompt Judgment, without a trial, by means of summary judgment or mediation. Obtaining a Judgment will then enable you to take a number of steps to enforce the Judgment against the debtor, and recover the debt as promptly as possible.
What are the alternatives?
Insolvency proceedings can be used for debts over £750, but as insolvency proceedings will require you to pay Official Receiver’s deposits and other fees exceeding this sum, commencing insolvency proceedings are usually only recommended if the sum claimed is several thousand pounds and when there is no, or no evidence of a dispute.