Owed debts can be a huge burden on businesses, especially in the current turbulent economic climate. Holmes & Hills Solicitors’ specialist Debt Recovery team discuss the importance of taking steps to actively recover any owed monies.
Dealing with outstanding money and knowing how to recover your debt can be unnerving. However, leaving your debts unpaid for too long can severely impact your chances of successfully recovering the money owed to you, which is where our debt recovery team can assist you, saving you time and money.
The longer you spend waiting on the mere chance that your debtor might repay you, the more you risk losing the money altogether. It is therefore important to strike a balance of retaining your business relationships and chasing your unpaid debts due to the risk that your debtor could become insolvent or bankrupt.
If you have taken steps to secure your debt as promptly as possible, hopefully you won’t find yourself stuck behind other creditors in the distribution of any available money.
Did you know that you may also be entitled to recover interest and compensation in addition to the outstanding debt?
If you are a company that has contracted with another company and do not have any terms related to interest or compensation for unpaid sums, you are entitled to claim statutory interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998.
If you are an individual who is owed money from another individual, or a company which has contracted with an individual, you may be entitled to recover statutory interest under the County Court Act 1984 in absence of you having agreed any rate of interest should sums becoming outstanding prior to entering into the agreement.
Holmes & Hills has a team of debt recovery solicitors providing an affordable service to assist you in recovering your debts. We can provide you with advice on the appropriate steps to take which best suits your circumstances in order to increase your chance of successfully collecting the money due to you.
We recently acted for a client in relation to a debt in excess of £35,000. Having issued a demand for payment, the debtor failed to respond. After promptly issuing County Court Proceedings, the debtor subsequently made full payment including interest and compensation.
For initial advice on the appropriate course of action for you or your business in recovering debt, or if you do not currently have any debts but would like some advice or a review of your contracts to ensure you can quickly make successful recovery should any payments go unpaid, contact our debt recovery team on 01206 593933.