Skip to content
There are many laws and regulations which govern the commercial debt recovery industry in the UK. These laws are there to protect the company filing to claim loss of money as well as those who are in debt. The main two are the Insolvency Act 1986 and The Companies Act 2006.
What are the Laws and regulations that govern commercial debt recovery in the UK?
The Insolvency Act 1986 is the most important law when it comes to commercial debt recovery. This act sets out the rules and procedures which must be followed by companies that are insolvent. It also gives creditors certain rights, such as the right to petition for the company to be wound up. This means that if a company is unable to pay its debts, the creditors can force it to close down and sell off its assets to pay them back. However this is a last resort, and many businesses prefer to come to other financial arrangements. Here at My Debt Recovery, we do just that, we understand the people behind the business and want to ensure everyone is happy with the solutions and outcomes of the process.
The Companies Act 2006 is also relevant to commercial debt recovery. This act sets out the rules and regulations which govern how companies are run. It includes provisions on directors’ duties, shareholders’ rights and the management of a company’s finances.
How do these laws and regulations impact your business?
All of these laws and regulations impact businesses that are trying to recover money that is owed to them. They need to make sure that they follow the correct procedures and that they do not do anything which could jeopardise their chances of success. Following the procedures in place not only makes it safer for all those involved, but it also helps everyone anticipate the next stages of the process. Having everyone on the same page as to what can happen and when it can happen will help ease a lot of stress and worries for all involved.
If you are a business that is owed money, it is important that you seek professional help to ensure that you have the best chance of recovering the debt. A commercial debt recovery specialist will be able to advise you on the best course of action to take and will be able to represent you in court if necessary.
Please note that this is general information only and does not constitute legal advice. For specific advice about your situation, you should always consult a qualified lawyer.
Here at My Debt Recovery, we want to remove the stigma which is often associated with debt collection agencies. We understand there are many various reasons why people end up in financial difficulties. We work with companies to find the most reasonable solutions, whether that is implementing a financial payment plan or other means of repayment. Contact our team now to see how we can help you reclaim what is owed. <
