Commercial Debt Recovery Solicitors

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Can you imagine what it would be like if you could free up your cash flow, create certainty and sleep easy? Now is the time to collect your debts with the uncertainty of the months ahead with the help of our commercial debt recovery solicitors in Birmingham, Northampton and London.

Unpaid invoices can have a disastrous impact on the performance of your business, leaving both you and your employees in a state of uncertainty. The team at Witan Solicitors understands that cash flow is part of the lifeblood of your business and any outstanding invoices could put a massive strain on your further payments, usually at the cost of your reputation. You can rely on our decades of experience to ensure that you get repaid in full and recover your legal costs. 

To get legal advice from a law firm recognised by the Legal 500, book a no-obligation consultation with one of our debt recovery lawyers in London, Northampton and Birmingham. Email us at info@witansolicitors.co.uk and recover your business debts quickly and efficiently.

What is Debt Recovery?

In simple terms, debt recovery is a process that involves recovering unpaid commercial invoices and debts through formal court proceedings. Our specialist debt collection solicitors will guide your business through the process and ensure that you are in a strong financial position.

Our Services

Our commercially minded solicitors have a wealth of experience in all areas of debt recovery, including:

• Bulk debt recovery
• Court proceedings
• Debt recovery
• Defending actions
• Developing effective pre-litigation strategies to prevent late payment, including letters before action
• Enforcing judgements
• Insolvency creditor services
• Issuing bankruptcy petitions
• Issuing winding up petitions
• International debt recovery
• Negotiating payment arrangements
• Reducing average debtor days by working with credit control teams
• Serving statutory demands

Pre-Legal Debt Collections and Recovery

Our business debt recovery solicitors always treat litigation as a last resort and will work with you to find the most cost-effective solution. With our pre-litigation approach, we can help you recover the money you are owed without going to court.

Pre-Legal Collections

We will chase debts on your behalf and report back to you at every stage. This step allows you to take advantage of the late commercial payments legislation, adding compensation and interest to the owed debt. On top of this, we can carry out credit checks on your debtors and help you determine the best route to recover your money.

Mediation and Debt Compromise

Before taking legal action, mediation provides another cost-effective solution, helping both parties to reach a mutually beneficial agreement. However, it is worth noting that, as these agreements are voluntary, neither party can be forced to adhere to the agreement. In such cases, our experts can advise on the next best step.

Arbitration

While there are some similarities between mediation and arbitration, it is important to not confuse the two. The key difference is that, unlike with mediation, the agreement that the third party helps the creditor and the debtor reach is legally binding. With that in mind, it may be the ideal route to recover the money you are owed. But it is important to remember that once an arbitrator has made a decision, you cannot go to court.

Court Action

If the pre-legal approach is unsuccessful, we can escalate matters and help you take legal action by issuing a ‘Letter Before Action’. This will give the debtor a set deadline to pay the money owed. 

In most cases, the debt will be paid. However, if this does not work, our debt collection solicitors can swiftly issue a claim on your behalf and gather any necessary evidence. 

In instances where the payment is not received within 14 days of the County Court Judgement, we offer a range of options to enforce judgements, including:

• Attachment of earnings
• Charging order
• High Court Enforcement (for debts that are not regulated by Consumer Credit and exceed £600)
• Order for sale
• Warrant of control

Court Action

If the pre-legal approach is unsuccessful, we can escalate matters and help you take legal action by issuing a ‘Letter Before Action’. This will give the debtor a set deadline to pay the money owed. 

In most cases, the debt will be paid. However, if this does not work, our debt collection solicitors can swiftly issue a claim on your behalf and gather any necessary evidence. 

In instances where the payment is not received within 14 days of the County Court Judgement, we offer a range of options to enforce judgements, including:

• Attachment of earnings
• Charging order
• High Court Enforcement (for debts that are not regulated by Consumer Credit and exceed £600)
• Order for sale
• Warrant of control

Process

Generally, claims against a consumer take between 2 – 3 months to complete. This time frame accounts for all the pre-legal action required to progress the case and secure a judgment. Claims against a commercial entity, on the other hand, take an average of 6 weeks to conclude.

Our debt recovery solicitors have years of experience helping businesses like yours recover their debts. We will adapt our process to help you receive your money as quickly as possible, though the debt recovery process will usually involve the following stages.

Money Claim

1. Letter before action – Debtors have 7 days to respond
2. Issue of money Claim – Debtors have 14 days to respond
3. Entry of judgment and issue of enforcement – It can take the court around 10 working days to enter judgment following the receipt of your request

Issue of Insolvency

1. Letter before action – Debtors have 7 days to respond; or Statutory demand – Debtors have 21 days to respond after service
2. Issue of petition – It usually takes 8 weeks until there is a hearing

If enforcement action is necessary, this will increase the timescale. But the good news is that we will keep you updated at all times so you do not have to worry about the progress of your claim.

Insolvency Proceedings

In some circumstances, it is possible to commence bankruptcy proceedings against an individual as an alternative to litigation. This process involves serving a statutory demand on the debtor, although the debt must:

• Exceed £5,000
• Be liquidated for a clear amount of money that does not require assessment
• Not be disputed

The debtor then has 18 days to declare that they do not have this money and set aside the demand or 21 days to pay the money owed. If the debtor does not do either of these things within the time limits, you have the right to take the case to court and apply for a bankruptcy petition. If nobody argues against the petition, the debtor will be declared bankrupt and their finances will be managed by a specialist appointed by the court.

Our Awards

Our Methods Of Recovering Debts

Our expert debt recovery solicitors have a range of strategies they can implement, including:

Pre-Action Debt Collection

The first step in our debt collection process will be to send a letter before action (also known as a “letter of claim”). This will clearly state the amount owed, the reason for the debt, and the deadline for payment to avoid further action. 

For simple debt recovery cases, a letter before action is usually all that is required to secure payment, allowing the matter to be resolved quickly and at a low cost. Our team has extensive experience writing these letters and dealing with any subsequent correspondence.

Prejudice-Free Negotiations

When the debtor contests the amount owed or states that they are unable or unwilling to make a full payment right away, it can be advantageous to enter into negotiations “without prejudice.” This phrase refers to the understanding that any concessions made or revealed during a meeting cannot and will not be used in any claim if an agreeable outcome cannot be reached.

 Our lawyers can advise and represent you during no-strings-attached negotiations, assisting you in considering options such as partial payment or a suitable payment plan. We will always provide realistic advice on whether any proposed settlement is reasonable and whether pursuing additional action is likely to be cost-effective.

Alternative Dispute Resolution

When a settlement cannot be reached through straightforward negotiation and the parties still want to avoid court proceedings, other options can be extremely effective.

 Commercial mediation and arbitration are two options that can be much faster, less expensive, and less acrimonious than pursuing a debt through the courts. This can also help both parties keep the situation private. 

County Court Debt Proceedings

If full payment or a suitable settlement cannot be obtained, or if the debtor simply refuses to engage, legal action may be required. Applying for a County Court Judgement (CCJ) can provide a strong incentive for debtors to pay, as well as a number of enforcement options if payment is not forthcoming. 

We can offer expert advice, including our assessment of the likelihood of success and whether court action is likely to be cost-effective. With our extensive court experience and excellent track record of successful proceedings, we can expertly guide clients through every stage of taking debt to court.

High Court Debt Enforcement

When a County Court Judgment is issued against a debtor and they do not pay, there are several enforcement options available. These are some examples: 

Bankruptcy and Winding-Up Orders

Depending on the situation, it can still be possible to recover all or part of the amount when a debtor has entered into insolvency. 

An official demand for payment must be made as a first step. If payment is not made, a court may be asked to issue a winding-up order or a bankruptcy order. The debt can then be pursued through an official receiver or insolvency practitioner, allowing the debtor to use their assets to pay off all or part of the debt. 

Our debt recovery solicitors frequently help clients pursue debts when the debtor has become insolvent, aid with the application for bankruptcy and winding-up orders, and handle necessary interactions with insolvency practitioners and the official receiver.

How can our Debt Recovery Solicitors help?

At Witan Solicitors, we specialise in the collection of commercial debt, supporting businesses with the entire process of recovering their money. Our team of business debt recovery solicitors provide a swift, straightforward, and cost-efficient debt recovery service for even the most difficult cases.

Our process is designed to facilitate the successful collection of your late invoices and if the debtor is proving unwilling to pay, we will consider the most appropriate method of enforcement which could be:

• Seizure of goods
• Winding-up proceedings
• Obtaining information from the judgement debtor
• Attachment of earnings
• Third-party debt orders
• Charging order
• Bankruptcy proceedings and orders
• Pre-action debt collection
• County Court debt proceedings
• High Court debt enforcement
• High-value debts  (over £250,000)

*Terms apply. If your debt is disputed we will review all your relevant documents and evidence and provide written advice on your options and prospects for recovery.

Who Do We Help?

With offices in Northampton, Birmingham and London, the team at Witan Solicitors can help you recover any debt in a fast and efficient way. From clients within asset-based finance companies and big corporations to private clients, we have successfully helped clients across different sectors with their debt collection. We offer:

• Debt recovery for business
• Debt recovery for private individuals
• Debt recovery for financiers

How Does Debt Collection Work?

When a debtor has not paid up what they owe you within the contractually agreed time period, you should first send them a reminder letter and contact them over the phone to address the issue before seeking legal advice. If following a polite reminder, the debt still isn’t paid, the business debt recovery team at Witan Solicitors can help. 

Legal Action

We will begin by familiarising ourselves with the details of your case to propose the most suitable debt recovery strategy. At this stage, it’s important that you give us access to some key documents, including the terms and conditions of payment, past invoices and any other information relevant to the case. 

We then commence the pre-litigation stage of the process. This includes sending an official letter before action to the debtor and follow-up communication with them to try and resolve the issue out of court. Many of our debt recovery cases are successfully resolved at this stage. 

If we get no response from the debtor, we can send a Statutory Demand for debts that are not disputed and if need be, issue a Winding-up Petition. Where debts are disputed or if the statutory criteria for winding up petitions are not met, we can also file a County Court Claim as a last resort. Once the claim has gone to Court, the debtor will have 14 days to respond (followed by an additional period of 14 days if they officially acknowledge the claim).  

Enforcing a Court Judgement

Once a Court Judgement (CCJ) has been made, we can help you enforce it using a number of legal strategies, including:

• Attachment of earnings: Payments are automatically deducted from the debtor’s salary 
• Charging orders: Property owned by the debtor is used to secure the debt, so if they don’t repay, you can repossess their home
• Statutory demand: This gives the debtor 21 days to either pay in full or agree upon a payment plan. If they fail to do so, bankruptcy or winding-up proceedings may commence 
• Warrant of execution: This allows a County Court bailiff to seize enough goods from the debtor to repay the amount you are owed
• Writ of control: This allows a High Court enforcement officer to seize enough goods from the debtor to repay the amount you are owed
• Third-party Debt Orders: This allows the Court to Order the debtor’s bank to pay you the Judgement amount or whatever is in the debtor’s bank account as of the date of the application to you

How Much Does Debt Recovery Cost?

At Witan Solicitors, we have a tailored approach that we have developed and perfected throughout the years in dealing with debt collections. Our specialist solicitors act in an efficient and fast way, ensuring that the maximum results are achieved in a cost-effective manner.

Please see our fixed costs for recovering standard debts here.

Why choose Witan Solicitors?

With decades of helping businesses recover outstanding debts, the Witan Solicitors legal team will find the right strategy to ensure you get what you are owed as quickly as possible. We always take the time to discuss with you any developments in your case, new opportunities and the risks involved in each, so you can make informed decisions about the next steps in your case.

• Guaranteed debt recovery for debts over £500
• Debt recovery experts since 2014 
• 100+ years of legal experience
• Hundreds of companies serviced 
• Over £5 million recovered for our clients
• Legal 500 Law firm 
• Commercially-focused approach
• Practical, jargon-free legal advice 
• Comprehensive debt recovery costs    
• Initial, no-obligation consultation
• Debt recovery solicitors in London, Birmingham and Northampton 

FAQ

What is business debt?

Business debt describes a situation where one business owes money to another. Delayed repayment on a debt has the potential to cause cash flow problems for the business lender. 

When bad debt (debt that seems unlikely to be repaired) accumulates, this can significantly harm your business’ finances, so it’s important to speak to our business debt recovery solicitors in Birmingham, London and Northampton as soon as possible.

What is commercial debt?

Commercial debt represents the amount of debt that is owned by a business. A commercial debt is used to fund different business assets and other expenses accumulated by the business. In most cases, it is usually start-ups that tend to build business debts.

When should I use a debt recovery solicitor?

Businesses are often advised to use a debt recovery solicitor to handle their commercial debt in order to reach a favourable outcome in a more cost-effective and quicker way. Due to their expertise, debt recovery solicitors know how to best help you. The party that owns your money is more inclined to pay the debt when a solicitor is involved.

Are you wondering if you should agree to a business debt being paid in instalments? Find out what our solicitors recommend.

Will using a debt recovery solicitor (or another third party) alienate my customers?

Using a debt collection solicitor is not going to alienate your customers. However, you need to be sure that the solicitor is not acting in an aggressive way otherwise you might be liable if the solicitor employs harassment as a method to get the debt back.

How can I find a suitable debt recovery solicitor (or debt collection agency)?

It’s best if you can find an expert solicitor who specialises in debt recovery. At Cato Solicitors, we have a proven record of successful debt recovery cases and we have been helping our clients for over 30 years.

What is the difference between a secured creditor and an unsecured creditor?

If you are a secured creditor, you have the power to seize and sell the property upon which your debt is secured, most commonly this is a house or commercial property. 

Unsecured creditors will have to go to court and obtain a Charging Order to be given the right to goods owned by the debtor.

Is there a time limitation for pursuing a debt?

Yes, unsecured debts must be pursued within 6 years of the last time the debtor has acknowledged the debt while secured debts must be pursued within 12 years. After this period has passed, you can’t recover your debt unless the court allows you to do so. Speak to our debt recovery solicitors in London, Birmingham and Northampton to get advice and take action on time. 

What’s the interest rate on overdue debts?

You can charge interest if a rate has been specified in the terms and conditions. If no interest rate has been specified, you may be able to claim statutory interest which equates to 8% + the Bank of England base rate.

Can I seek business debt repayment from a personal guarantor?

Yes, you can pursue money owed from anyone who has signed a personal guarantee even if it’s on commercial debt.

What is a County Court Judgement (CCJ)?

A County Court Judgment (CCJ) against a debtor means that the court has ruled that the debtor must pay the debt. If the payment has not been made in full within 30 days this will affect the debtor’s credit rating. When debtors refuse to pay, at Cato Solicitors, we can help you take legal action to enforce the CCJ and recover your debt.