Our Debt Recovery Process

Here at My Debt Recovery, we are known for our professional approach to recovering monies owed to our clients. When we take on any work, we will always aim to recover your monies by negotiating with the debtor. However, sometimes this isn’t always possible so we need to go through some more formal steps to recover what is owed to you. 

To help you understand the debt recovery process, we have put together a typical process we would follow. This isn’t a one size fits all so we will always personalise our approach based on you, your debtor and the type of debt.

Negotiation

With any case we take on, we will always aim to negotiate with your debtor before we go down the legal route. This is why you will see ‘Negotiation’ repeated throughout this process. Our specialist team have years of experience in negotiating with debtors, their success rate in recovering monies owed without having to take legal action is exceptionally high, due to their professional and understanding approach with debtors.

Letter before Action

If we are unable to make contact with your debtor or negotiations are unsuccessful, we will issue a ‘Letter Before Action’. This letter must be sent to your debtor before any legal proceedings to recover the debt are undertaken. The Letter Before Action is a final demand letter to request payment before we proceed with legal action, the letter will include:

  • The amount owed (the debt)
  • The date the debt should have been paid
  • Any interest to be paid
  • How long the debtor has to pay the outstanding monies before legal action is taken

 

A Letter Before Action maybe enough to encourage your debtor to pay.

Legal Claim

Should your debtor not respond to the Letter Before Action or they provide an unsatisfactory response, we will move to the next stage of our process, legal action. This stage will involve issuing legal proceedings through the County Court. Following lodging a claim with the County Court, your debtor will receive a claim form requiring them to settle the debt. The debtor will have 19 days to respond to the claim by either admitting and paying the debt, entering back into negotiations to settle the debt or defend the claim.

Winding Up Petition

An alternative to issuing a County Court Claim, is to begin insolvency action against your debtor. This would be in the form of a winding up petition and can only be pursued if the debt is over £750 and has been unpaid for at least 21 days. The winding up petition is a legal notice that is filed with the courts and requests a hearing to establish if your debtors company is insolvent.

This is usually preceded with the issue of a Statutory Demand where the debtor will have 21 days to respond or face their business being forced into liquidation.

Judgement

If your debtor fails to pay the debt owed to you, by the expiry date of the County Court Claim, we can move to the next stage of obtaining a County Court Judgement (CCJ).

A CCJ is the final decision by the Court that allows us to take enforcement action against your debtor, in order to collect the debt. If your debtor fails to pay the CCJ within 30 days of receiving the judgment, it will be registered and will impacted their credit rating. A CCJ remains on their record for 6 years.

Enforcement

Once we have obtained the CCJ, we can then move into the enforcement stage of the debt recovery process. A High Court Enforcement Officer will then attend the debtor’s premises to collect the debt or remove goods to the value of the debt, if the debtor is unable to pay.

Negotiation

With any case we take on, we will always aim to negotiate with your debtor before we go down the legal route. This is why you will see ‘Negotiation’ repeated throughout this process. Our specialist team have years of experience in negotiating with debtors, their success rate in recovering monies owed without having to take legal action is exceptionally high, due to their professional and understanding approach with debtors.

Letter before action

If we are unable to make contact with your debtor or negotiations are unsuccessful, we will issue a ‘Letter Before Action’. This letter must be sent to your debtor before any legal proceedings to recover the debt are undertaken. The Letter Before Action is a final demand letter to request payment before we proceed with legal action, the letter will include:

  • The amount owed (the debt)
  • The date the debt should have been paid
  • Any interest to be paid
  • How long the debtor has to pay the outstanding monies before legal action is taken

 

A Letter Before Action maybe enough to encourage your debtor to pay.

Legal Claim

Should your debtor not respond to the Letter Before Action or they provide an unsatisfactory response, we will move to the next stage of our process, legal action. This stage will involve us issuing legal proceedings through the County Court. Following lodging a claim with the County Court, your debtor will receive a claim form requiring them to settle the debt. The debtor will have 19 days to respond to the claim by either admitting and paying the debt, entering back into negotiations to settle the debt or defend the claim.

Or

Winding Up Petition

An alternative to issuing a County Court Claim, is to begin insolvency action against your debtor. This would be in the form of a winding up petition and can only be pursued if the debt is over £750 and has been unpaid for at least 21 days. The winding up petition is a legal notice that is filed with the courts and requests a hearing to establish if your debtors company is insolvent.

This is usually preceded with the issue of a Statutory Demand where the debtor will have 21 days to respond or face their business being forced into liquidation.

Judgement

If your debtor fails to pay the debt owed to you, by the expiry date of the County Court Claim, we can move to the next stage of obtaining a County Court Judgement (CCJ).

A CCJ is the final decision by the Court that allows us to take enforcement action against your debtor, in order to collect the debt. If your debtor fails to pay the CCJ within 30 days of receiving the judgment, it will be registered and will impacted their credit rating. A CCJ remains on their record for 6 years.

Enforcement

Once we have obtained the CCJ, we can then move into the enforcement stage of the debt recovery process. A High Court Enforcement Officer will then attend the debtor’s premises to collect the debt or remove goods to the value of the debt, if the debtor is unable to pay.

Get In touch

0800 009 6106

Get In touch

0800 009 6106