Uk Debt Recovery
CONTACT US TODAY
Don’t let unpaid debts linger. If you have an outstanding Debt or already have a County Court Judgment and need assistance with enforcement, contact Excellum Legal Solicitors today. We offer a free consultation to discuss your case and provide you with tailored advice on the best enforcement options available.
To schedule your consultation, please contact us by phone at 0161 7888 000 or by email at info@excellumlegal.com
BUSINESS- BUSINESS DEBT RECOVERY
BUSINESS DEBT RECOVERY
Is your business burdened by unpaid invoices and overdue payments? Don’t let outstanding debts cripple your cash flow and hinder your growth. Excellum Legal Solicitors, your trusted partner in debt recovery, is here to help you navigate the complexities of the legal landscape and recover what’s rightfully yours.
DEBT RECOVERY PROCESS
- Pre-Legal Action:We start the procedure by understanding how the debt arose, discuss any complexities and prospects with you. This is usually followed by formal Letter Before Action (LBA) to the debtor, clearly outlining the outstanding debt and the consequences of non-payment.
- Legal Proceedings:If the debtor fails to respond or refuses to pay, we can commence legal proceedings on your behalf. Our solicitors will meticulously prepare your case, represent you in court, and strive to obtain a County Court Judgment (CCJ) to enforce the debt legally.
- Enforcement: Once we obtain a CCJ, we have various enforcement options at our disposal. Depending on the debtor’s circumstances,we may utilise High Court Enforcement Officers, County Court Bailiffs, or other appropriate methods to recover your money.
- Insolvency Expertise:In situations where the debtor is insolvent, we can guide you through complex insolvency proceedings, including winding-up petitions for companies and bankruptcy petitions for individuals. We will work diligently to protect your interests and maximise your chances of recovery within the legal framework.
EXCELLUM LEGAL-YOUR PARTNER IN DEBT RECOVERY
At Excellum Legal Solicitors, our utmost dedication lies in delivering outstanding client service and attaining optimal outcomes. We are proud of our open and honest communication, use practical methods, and continually work to protect your financial interests.
WHY CHOOSE EXCELLUM FOR DEBT RECOVERY?
- Proven Track Record
- Experts in Debt Recovery
- Personalised Debt Recovery Strategies
- Comprehensive Debt Recovery Solutions
UNDERSTANDING ENFORCEMENT OPTIONS
Enforcement is the legal process of compelling a debtor to satisfy a judgment debt. Several enforcement methods are available, each with advantages and suitability depending on the debtor’s circumstances.
At Excellum Legal Solicitors, we have extensive experience in all aspects of debt enforcement. We understand the intricacies of each method and will guide you through the process, ensuring the most effective and suitable approach to recovering your debts.
We work closely with High Court Enforcement Officers, County Court Bailiffs, and other relevant agencies to ensure swift and successful enforcement. We aim to maximise your chances of recovery while minimising any disruption to your business.
UNDERSTANDING INSOLVENCY ACTION
Insolvency is when a debtor, whether an individual or a company, cannot pay their debts as they become due. In such cases, creditors can pursue various insolvency actions to recover outstanding amounts. Our solicitors will assess your situation and recommend the most appropriate course of action based on the debtor’s financial circumstances and the specific nature of your debt.
PROCEEDINGS AGAINST COMPANIES
If a company owes you a significant debt (typically exceeding £750) and has failed to make payment despite your demands, you can start winding-up proceedings. This involves presenting a petition to the court, which can lead to the company’s liquidation and distribution of its assets to creditors.
Our team will guide you through the entire process.
LIQUIDATION DEBT RECOVERY PRIORITY
In the event of company liquidation, creditors follow a specific order of priority to distribute assets.
- Liquidator’s Costs: Costs incurred by the insolvency practitioner overseeing the liquidation.
- Secured Creditors: Lenders with a secured interest in the company’s assets (e.g., banks with mortgages).
- Employee Claims: Unpaid wages, holiday pay, and redundancy entitlements, subject to statutory limits.
- Unsecured Creditors: Suppliers, landlords, unsecured loans, and trade creditors.
- Shareholders: Typically, last in line for any remaining funds.
Our team can advise you on your position as a creditor and work to maximise your recovery within this hierarchy.
PERSONAL GUARANTEES: BELTS AND BRACES
When granting credit, it is advisable to consider acquiring a Personal Guarantee of a director or shareholder. This additional safeguard makes them liable for the debt if the company becomes insolvent. We can advise you on how to draft and enforce these guarantees.
Business – Individual Debt Recovery
As a business, when dealing with an individual, you are obligated to take the first steps by following the Pre-Action Protocol for Debt Claims. We can provide advice and represent in following this protocol so that if further court action does become necessary, you do not fall foul of having your claim dismissed.
We will assess your communications to date and act accordingly to ensure that you have the best possible chance of recovery. We can advise you on using a Statutory Demand to recover your debt when appropriate. Failure to respond to a Statutory Demand can lead to the initiation of bankruptcy proceedings for individuals with a substantial debt (usually over £5,000). Bankruptcy involves a formal legal process where the debtor’s assets are distributed among creditors.
Our solicitors will assist you in:
Issuing a Statutory Demand
Serving a formal notice requiring the individual to pay the debt Advising within a specified time frame.
Filing a Bankruptcy Petition
Preparing and submitting the petition to the court, adhering to all procedural requirements.
Attending Court Hearings
We attend court hearings to represent your interests and ensure that your claim receives proper consideration in bankruptcy.
WHY CHOOSE EXCELLUM LEGAL SOLICITORS?
Expertise: Our team has in-depth knowledge of Debt Recovery law.
Tailored Solutions: Our team will specifically tailor it’s approach to each unique case, resulting in the most effective debt recovery..
Client-Focused Service: We believe in clear communication, transparency, and providing regular updates throughout the entire process.
Cost-Effective Representation: We offer competitive fees and transparent pricing structures so you know exactly what to expect. More details are given in our Pricing.
Contact Today
Contact Excellum Legal Solicitors for insolvency action against a debtor. We will provide you with expert advice and representation to help you recover your debts and protect your financial interests.
Call us on 0161 7888 000 or email us at info@excellumlegal.com to schedule a consultation.
Debt Recovery - Pricing Example
Pricing Example
Example for a business-to-business debt that is undisputed (claims up to £200,000)
Court Claims
These costs apply where your claim is in relation to an unpaid invoice which is not disputed, and enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which could be on a fixed fee (e.g. if a one-off letter is required) or an hourly rate if more extensive work is needed.
| Debt value | Court fee (refundable on successful claim) | Fixed Court Costs (refundable on successful claim) | Our Fee (non -refundable) |
| Up to £300 | £35.00 | £50.00 | £60.00 |
| £301 – £500 | £50.00 | £50.00 | £75.00 |
| £501 – £1000 | £70.00 | £80.00 | £100.00 |
| £1001 – £1500 | £80.00 | £80.00 | £100.00 |
| £1501 – £3000 | £115.00 | £80.00 | £150.00 |
| £3001 – £5000 | £205.00 | £80.00 | £300.00 |
| £5001 – £10,000 | £455.00 | £100.00 | 10% value of the claim |
| £10,001 – £200,000 | 5% value of the claim | Standard Costs | 15% value of the claim |
VAT is charged in addition to our costs at 20% when applicable.
Anyone wishing to proceed with a claim should note that:
- The VAT element of our fee cannot be reclaimed from your debtor.
- Interest and compensation may take the debt into a higher banding, with a higher cost.
- The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
OUR FEE INCLUDES
- Taking your instructions and reviewing documentation
- Undertaking appropriate searches
- Sending a letter before action
- Receiving payment and sending to you, or if the debt is not paid, drafting and issuing the claim
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
- When Judgement in default is received, write to the other side to request payment
- If payment is not received within 28 days, provide you with advice on the next steps and likely costs
Matters usually take 3-6 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly upon receipt of judgment in default. If enforcement action is needed, the matter will take longer to resolve.
If the debtor decides to defend the proceedings, the matter will fall outside the fixed cost regime above. We can advise you on the appropriate options available and, if necessary, re-allocate your case to the Dispute Resolution department. We will discuss any further work required and provide revised advice about costs if necessary. We can also advise you on possible funding options to help you fight the case. Please see the website for further information or contact us to discuss these options.
If you have outstanding international debts, our team can provide expert guidance on the most effective strategies and jurisdictions for pursuing these debts in accordance with English law. We offer comprehensive advice tailored to your specific circumstances, ensuring that you understand the legal framework and options available for debt recovery across different countries. Our goal is to help you navigate the complexities of international debt collection, maximize your chances of success, and achieve the best possible outcome.
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