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DEBT COLLECTION & RECOVERY

Serving a County Court Judgment means formally notifying the debtor that a court has ordered them to pay a debt. Once issued, the debtor is typically given a set period to pay, often 14 days or within agreed instalments.

Commercial debt collection is the process of recovering unpaid invoices owed to a business by another business or organisation. It typically follows a structured legal pathway, starting with a letter before action to prompt payment and warn of potential court proceedings.

Late payment charges allow businesses to recover more than just the original invoice value when payments are overdue. Under the Late Payment of Commercial Debts (Interest) Act, you may be entitled to claim statutory interest, fixed compensation, and reasonable recovery costs from debtor businesses.

Pre-action protocols are rules that set out the steps parties must follow before starting court proceedings, helping to resolve disputes efficiently and without litigation where possible. They apply to everyone involved in a claim, including claimants, defendants, and their solicitors, depending on the type of dispute.

Recovering multiple debts can be complex, especially when dealing with several clients or outstanding invoices at once. Keeping accurate records is essential to ensure debts are not duplicated and all balances are tracked correctly.

A County Court Judgment (CCJ) is a court order issued when an individual or business fails to repay money they owe. It confirms the debt is legally enforceable and sets out how it must be repaid, either in full or by instalments.

Debtor tracing involves locating an individual or business that owes money but can no longer be contacted. The process typically begins with basic details such as a name and last known address, followed by research using databases like the electoral roll, credit reference agencies, and public records to identify a current address.

Recovering debt from a sole trader requires following the correct legal process, as the individual and the business are treated as one and the same. Typically, this involves sending a compliant pre-action protocol letter, allowing the debtor 30 days to respond, and attempting to resolve the matter before proceeding to court action if necessary.

In the UK, businesses can charge statutory interest on late commercial payments under the Late Payment of Commercial Debts (Interest) Act 1998. The standard rate is 8% above the Bank of England base rate, applied to overdue invoices from the day after payment is due.

In the UK, debts do not last forever. Under the Limitation Act 1980, most unsecured debts become “statute barred” after six years if no payment or written acknowledgement has been made. This means creditors can no longer take legal action to recover the money, although the debt may still exist and collection attempts can continue in some form. Understanding these time limits is essential for both creditors and debtors when dealing with older debts.