Law
Published: April 2, 2024 | Updated: 2nd April 2024
Debt recovery can be difficult, especially if the debtor you are trying to recover money from someone who isn’t responding to you.
However, there are some steps you can take to make sure that any debt is paid.
In this month’s Legal Q&A, Debt Recovery Expert Jason Grimster answers your questions on debt recovery, how it works and the process involved.
There are a couple of things you can do to try to recover the debt without resorting to legal action, including:
In some cases though, legal action is a necessary step, so make sure to keep a record of all of the above steps you have taken so that you are prepared if things do go to court.
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In the UK, there’s a limitation period which dictates how long you have to take legal action to recover an unpaid debt.
How long you have depends on the type of debt but, generally for most simple debts, you have six years to legally enforce it from the date the debt became due.
This period may be extended in certain circumstances, such as if the debtor recognises the debt or begins to pay it back. And, in some cases, there may be no limitation period if, for example, the debt is related to a mortgage, judgement or certain types of government debt.
After this limitation period expires, you will lose the right to take legal action to enforce the debt. However, because the debtor technically still owes you, you can still ask for it to be repaid – just not through legal action.
To find out exactly how long you have to recover your debt, we’ll need to know the circumstances of your case. Please get in touch with our bright debt recovery team on 01202 499255.
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The first step to recover a debt is to contact the person/company who owes money.
If the debtor doesn’t respond to your initial contact, you can send a Letter of Claim that warns them of your intention to take legal action if the debt isn’t repaid within a certain time period.
After this period, if they have yet to settle the debt, legal action can begin. This would involve launching a claim through either the County Court or High Court, depending on how much the debtor owes you.
During court proceedings, the debtor is allowed to respond to the claim. At this point, they may dispute it and provide reasons as to why the claim is invalid. Once the debtor’s argument has been heard, or if they fail to respond, the court will make a judgement.
As part of this judgement, the court will provide instructions as to how and when the debts should be repaid to you.
Related: Can I claim against an estate if the deceased owes me money?
A debt recovery solicitor will provide you with guidance as to what is the best route to take to recover your debt, and assist you in drafting letters to the debtor, negotiations, filing claims and more.
Debt recovery proceedings can be a minefield, so it’s always best to have a solicitor on side right from the start to ensure that the correct legal action is taken and that you have the best chance of recovering any debt.
Plus, if legal proceedings do arise, it’s beneficial to have a solicitor already instructed, as they will understand the complexities of your situation without having to be brought up to speed before representing you in court.
If you have any questions following this article, or would like to discuss your options with an expert, please don’t hesitate to get in touch with our bright Debt Recovery team.
We can provide tailored advice and assist you in contacting the debtor, drafting a letter and going to court.
You can call us on 01202 499255, or follow this link for a free initial appointment.
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