Ambrose Crookes Solicitors provide expert debt recovery services to clients including individuals and businesses throughout the UK with a particular focus in London, Kent and the surrounding regions.
Our professional debt recovery team are here to support and advise you in relation to your debt matter. We aim to provide a robust, no-nonsense, relentless approach to debt recovery and will act as quickly and efficiently as possible to recover your debt.
In the first instance, we will issue a pre-action debt protocol letter to the debtor making clear what the debt is for and what the consequences will be for non-payment. In most cases, the threat of legal proceedings and/or insolvency is enough to push a debtor to reach a settlement. Where this is not possible, there are several further steps which may be taken by us on your behalf in recovering the amount/s owed.
Statutory demand
A statutory demand will set out the full amount due and warn the individual or business that insolvency proceedings will follow if the debt is not paid, or if the statutory demand is not set aside within the prescribed period. Statutory demands should only be used where the debt is uncontested and if the debtor has no defence as to the validity of the debt claimed. The consequences of insolvency proceedings being issued against the debtor presents a real threat to that person or company’s credit rating and financial security, which the debtor will do all they can to avoid, unless they are incapable of paying the debt, in which case insolvency may be the only option to try to recover some if not all of the amount/s owed.
Court claim for debt
The pre-action protocol for civil claims requires Claimant/Creditors to issue a pre-action letter before issuing a court claim. The pre-action letter will first set out the full details of the claim, including but not withstanding; a summary of the facts leading to the claim, the legal and factual basis for the claim, the amount claimed, and a reasonable time limit for response from the Defendant. If the pre-action protocol is not followed, then sanctions may applied by the court for any failure to adhere to the rules.
We act for Claimants and Defendants in debt claims arising from a variety of different debt related matters and can offer advice and representation to you throughout the course of your dispute.
The work involved in the recovery of a debt through the court claim process will generally include as follows:
– Pre-action letter / defence letter
– Mediation, negotiation, arbitration or other forms of alternative dispute resolution
– Issue court claim, claim form and particulars of claim
– Acknowledgment of service
– Admission or defence and (where applicable) counterclaim
– Reply to defence and any counterclaim
– Allocation
– Directions (as to how the claim shall be heard)
– Disclosure of evidence
– Witness statements
– Expert reports
– Preparations for trial
– Trial
At Ambrose Crookes Solicitors, we recognise that court actions can be stressful and uncertain. We will always encourage settling matters out of court wherever possible, and where settlement cannot be achieved we will work with you toward producing the best outcome possible.
Enforcement of a court judgment for an unpaid debt
Once a court judgment has been obtained against an individual or a business, it can sometimes be difficult to recover the sums awarded by the court thereunder. There are various methods for enforcement of a court judgment which we can assist with in the recovery of a debt, such as: –
- A charging order against a property owned by the debtor preventing its sale until the debt has been discharged
- Order for sale ordering the debtor’s property to be sold so that the judgment debt can be paid
- Attachment of earnings order, ordering that a proportion of a judgment debtor’s earnings be deducted by his/her employer and paid to the judgment creditor until the judgment debt is paid
- A third party debt order, ordering another party who owes the debtor to pay you the sums you are owed under the judgment
- Writ of control and warrant of execution for the seizure of assets/goods belonging to the individual or business who owes you money under the judgment, so that those assets/goods may be sold to repay the sums owed
Insolvency proceedings (as follows) may also be brought in respect of a judgment debt.
Winding up petition against a business for an unpaid sum of money
If the debt is owed by a business, then we can act for you in presenting a winding up petition to the court to ‘wind up’ a business which appears to be incapable of paying its debts following the issue of a statutory demand for the money owed. Most business owners will not want their business to be struck of the company register and will want to continue trading, it is therefore likely in most cases that the threat of insolvency will encourage settlement if payment can be made. In the event that a winding up order is made by the court, then an administrative receiver will be appointed to take over the company’s affairs. If there are sufficient assets held by the company, these assets can be realised to repay its debts.
Bankruptcy petition against an individual for an unpaid sum of money
If the debt is owed by an individual, then we can act for you in presenting a bankruptcy petition to the court to bankrupt the individual if they cannot repay their debt. A bankruptcy order can significantly affect an individual’s ability to obtain credit for 6 years following the bankruptcy, and it will also prevent the individual from operating a bank account for 12 months. Further, the value of a bankrupt’s possessions is usually shared out amongst their creditors. This can include their house, car, leisure equipment and jewellery (everything except the essentials for day-to-day living). Depending on their income, they can also be asked to make payments towards their debts for up to three years. Given the particularly undesirable results of a bankruptcy order, an individual will want to do everything they can to avoid bankruptcy and it can therefore be a highly effective method to recover a debt.
Fees for debt recovery
Our fees for providing debt recovery services, legal representation and advice will vary depending on the complexity of the matter, and the time, expertise and services required. For highly specialised matters we have good relationships with several Barristers Chambers and can call upon external Counsel/Barristers to provide more in depth advice in their area of expertise subject to the instructions we receive.
Our debt recovery services team are highly approachable and we offer a free, no obligation consultation should you wish to discuss your matter with us confidentially before deciding whether to proceed. Debt recovery can be a complex and evolving area of law, and we do everything we can to ensure that our clients are well informed on the issues at hand in any debt matter so that you can proceed with confidence.
For further information regarding our debt recovery services, please feel free to request a quotation or contact us.