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Recovering unpaid invoices can be a frustrating and time-consuming affair for any business.
We recognise the needs for our commercial clients to pursue unpaid invoices efficiently and vigorously in a cost effective manner.
Our computerised Debt Recovery Service is operated by a specialist team of solicitors and led by an experienced Debt Recovery manager.
However, we aim to provide more than just a computerised system and pride ourselves on the level of service we provide to clients. We are able to recover debts of any size quickly and efficiently with minimum cost to you.
First step – letter before action
The first step is to send out the ‘letter before action’. This letter is sent out immediately upon receipt of your instructions and demands payment within seven/fourteen days.
It may also include a claim for interest/costs under the Late Payment Commercial Debts legislation.
The letter also points out that in the absence of payment court proceedings will be issued without further notice and further costs incurred.
Often the letter before action prompts a response from the debtor.
The letter before action is sent out at no cost to you.
Issue of proceedings
If no response is received – a County Court claim form can be issued. This will include a claim for: debt, court fees, costs and interest.
Interest
Interest can be recovered as follows:-
Statutory interest – currently 8% from the due date of the invoice until Judgment, or
Late Payment of Commercial Debts Act 1998 – 8% above Bank of England base rate plus fixed costs associated with the Act, or Contractual Interest in accordance with your terms and conditions.
Notice of issue
Once the proceedings have been issued by the Court they will arrange for the claim form to be sent to the debtor and will send out a notice of issue.
This notice confirms the proceedings have been issued and provides the timetable for a response.
Once the claim is issued the debtor is also liable for the court fees, costs and interest in addition to your unpaid invoice.
No response
Judgment can be immediately entered and enforcement proceedings issued.
Judgments
Once a Judgment is unpaid for over thirty days it is registered with the Register of County Court Judgments.
This will affect the debtor’s credit rating and if unpaid will remain on the Register for six years.
Interest continues to accrue on Judgments over £5000 at the statutory rate.
Defence
If the debt is disputed and the debtor files a defence – we can advise you on the appropriate actions available and, if necessary re-allocate your case within the Dispute Resolution Department in Ashton Graham.
We can also advise on possible funding options to help you fight the case.
For more information contact Sarah Lock.
T: 01284 727082
E: recovermydebt@ashtonkcj.co.uk
Ashton KCJ commercial solicitors can assist in the following areas:
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