Debt Recovery

Our insolvency solicitors are experienced in helping debtors, creditors, funders, and insolvency professionals with the management and recovery of debt and assets.

We offer a full range of debt recovery and insolvency services to UK businesses and individuals, including bankruptcy petitions and proceedings, debt recovery orders, statutory demands, debt management advice, and help with family insolvency issues (including those related to divorce proceedings).

If you would like to speak with a member of our debt recovery and insolvency team, please contact Maria Mitu or fill in our contact form

Our approach to debt recovery

Letter before Action

We start by sending the debtor a letter saying we will start proceedings unless they pay by a certain date (usually 14 days for corporate debtors and 30 days for individuals).

Court Proceedings

If this fails, we will draft the Claim Form and its particulars and request that the court issue proceedings. The debtor must respond within 14 days of the Claim Form being served. The debtor has the following options:

  • Admit the debt and pay in full.
    If the payment is made after the court issues its documents, the debtor must pay the required interest and legal costs of collection.
  • Admit the debt and offer to pay in instalments.
    If the client consents, we can ask the court for a judgement to pay in instalments. If the client does not agree with the debtor’s proposal, a hearing will be set to consider the debtor’s financial status before deciding the amount of the instalments. If our presence is required at the hearing, this service will be charged hourly.
  • Advance the claim.
    If the debtor rejects the claim, it can be settled out of court or by a trial. We charge our normal hourly rates for a contested debt procedure.

Any receivable owing accumulates interest of 8%, to which court and solicitors’ fees are added. Solicitors’ fees can only be claimed for debts in excess of £10,000. For debts below £10,000, solicitors’ fees must be paid by the appointing parties.

Enforcement of Judgments

After we obtain a court judgement against the debtor, the debtor is obliged to pay the debt within 14 days. If the debtor fails to meet this deadline, we will help you find the best method of enforcement, which includes:

  • Order to obtain information from a judgment debtor.
    This order compels the debtor to appear in court to answer questions about their financial status. This process illuminates the debtor’s assets to help identify the most effective method of enforcement.
  • Obtain a warrant of execution – County Court bailiff.
    The bailiff will visit the debtor’s property to recover assets for sale at auction. You must pay the court fee for this service must be paid regardless of whether sufficient goods are recovered.
  • Attachment of earnings.
    This order compels the debtor’s employer to pay part of the debtor’s salary to the creditor. You as creditor will be paid regularly until the debt is paid in full. This option does not apply to debtors who are self-employed. While this method is effective, repayment of the debt can take a long time, depending on the debtor’s salary.
  • Charging Order.
    If the debtor has a property worth enough to pay off the debt after payment of any existing mortgages and other obligations, you can apply for a sale order. You must first obtain a Charging Order to confirm that you will apply the proceeds of sale to the debt.
  • Third Party Debt Order.
    If you have the debtor’s bank details, you can request an order to recover the debt directly from their account.

Statutory Demand

This is a demand for the money owed to you under the judgement, stating that you will begin insolvency proceedings against the debtor if the debt is not paid within 21 days. These insolvency proceedings can only be issued for debts above the legal minimum (£5000 for an individual and £750 for a company). They are expensive, and if the debtor contests them, we charge clients an hourly rate. If you are owed several thousand pounds and are convinced that the debtor can pay, we advise you to consider it.