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There are many actions you can take to recover commercial debt. From organising payment plans, written letters, debt mediation and more. The world of commercial debt recovery can be tiring and stressful; but that doesn’t mean you shouldn’t work to recover commercial debt.
At My Debt Recovery, our team of debt recovery specialists work with you to find the best solution to reclaim commercial debt. Follow our step by step guide on the legal actions you can take to recover commercial debt, or contact our expert consultants today.
Initial steps before legal action to recover commercial debt
There are a few steps you must have taken before you begin to consider legal action. After all the missed invoice may have been an error or malfunction, so always be sure to give the benefit of the doubt for first missed payments. That being said when a payment has surpassed the invoice deadline you should always send a payment reminder. This way if it was a genuine error it will be rectified quickly.
After a payment reminder has been sent you should follow up with a late payment demand. This is where you have stipulated that an invoice had been sent followed by a reminder and now you expect the payment to be made in full.
Once you have done the first few steps you are then able to send a formal letter – think of it as a final warning before you take action.
At this point you may consider working with a debt recovery agent such as my debt recovery. Our commercial debt recovery experts are able to assist with the process of commercial debt recovery.
Court action to recover commercial debt
When you have taken all other steps to recover commercial debt, or decided to work with a commercial debt recovery company. You may decide to look at court action to recover the monies owed.
Before this can be done a compliant letter before action needs to be issued. If they don’t respond the next step would be to issue a claim with the court against the debtor, this could be a business or individual.
When a claim has been issued the court will then serve it to the debtor, they will need to acknowledge the claim within two weeks and respond within four weeks. This is where the debtor can either admit the whole claim or make a counterclaim. Once this has been made the court will then go through the trial process.
Enforcement actions to recover commercial debt
Once judgement is obtained we need to look at the right type of enforcement action to recover commercial debt. It typically involves the following methods:
- Writ of control
- Charging order
We have a detailed blog about the debt recovery enforcement options you have available.
Filing for bankruptcy or insolvency to recover commercial debt
Another process businesses may decide to take to recover commercial debt is to file for a Compulsory Liquidation or Bankruptcy if the debtor is an individual. This is only a suitable option if the commercial debtor is unable to pay a debt that is more than £750, you will need to file a winding up petition in order to begin the process of insolvency.
At My Debt Recovery our experts assess your claim, advise you on the best course of action, and then take a proactive approach to recovering commercial debt. For more information on how we work with you, speak to our commercial debt recovery experts today.
