There are various types of debt recovery enforcement options available. Each one has its own uses and as such you should take extreme care in deciding which route to go down.
Before we decide on the debt recovery enforcement option there are several things we will ld do before further action is taken such as,
- Sending letters before action
- Working out payment plans
- Speaking with a debt recovery consultant
In some cases either of the above steps are enough to recover unpaid monies. However, for those instances where further action is required here are the debt recovery enforcement options you have available.
Writ of Control
A writ of control or also known as taking control of goods is a common method of enforcement options. This is mostly due to the fact that it can be inexpensive, quick and has an impact. However before we can go down this route we must first file for a County Court Judgement.
Keep in mind that a writ of control works most effectively when the debtor has goods of enough value. If the debt is over £600 the judgement may be transferred to the High Court where an enforcement officer is nominated to take control of the goods.
Third party debt recovery
Third party debt recovery allows you to obtain monies owed to you that are in the possession of a third party. By serving an order on the person who owes you money, you remove the third party and the money is paid directly to you.
This method of debt recovery enforcement would rely on you as the creditor to have the relevant information of your debtor’s financial circumstances for instance; who they bank with etc.
While a charging order isn’t a form of debt recovery enforcement, it is a solution to securing debt against an asset owned by the debtor. For instance, the asset is usually one in which the debtor has significant interest such as land or buildings.
The creditor would secure the debt over the debtor’s interested asset, which would mean that should the debtor decide to refinance or sell the asset; it wouldn’t be possible without dealing with the charging order. This ultimately means they would have to pay their debt to do anything with their assets.
Bankruptcy or Compulsory Liquidation for a Limited Company is not strictly considered as a debt recovery solution as in an ideal world the debt would be paid and everyone would continue trading. However, should it be necessary for your debtor to file for some form of insolvency the assets may be sold which in turn might provide a payment in full or part to the creditors.
Due to the severity of a bankruptcy or insolvency threat, it can be just enough to encourage the debtor to pay their invoices if all other options have been explored.
At My Debt Recovery, our experts work with you to ensure the best possible solution is reached. We work to ensure that the path of least resistance is taken and all monies owed to you are obtained in an efficient and effective manner which all parties are satisfied with.
If you are looking to collect on unpaid invoices or monies owed contact our team of expert debt recovery specialists today.