Good cash flow is central to all businesses, and the team at David Gray Solicitors LLP know that you need to take prompt action to recover outstanding debts. But you also need to ensure any action you take is cost effective and successful.
If talking to the debtor doesn’t work, then you need to consider whether to pursue the debt. Before pursuing a debt, you should send a Letter Before Action, explaining that you will issue Court proceedings if full payment isn’t received. If you don’t receive a response, then your next step is to issue a County Court claim.
Once you’ve issued a claim the debtor has 28 days to accept liability and arrange to pay, or file a Defence to the claim. A Defence explains to the Court why the debtor doesn’t think he is liable to pay. Newcastle based David Gray Solicitors will always advise you before issuing a claim on the merits, and of any potential disputes that they can see so that you can decide whether to pursue the claim.
If you don’t receive full payment, you can apply for a County Court Judgment to be entered against the debtor – which will then sit on their credit file for 6 years. You can also enforce it – whether that’s through bailiff attendance, charging orders or third party debt orders.
You are entitled to recover Court fees and legal fees from the Defendant, as well as interest from the date the money was due (at a rate of 8% per annum).
Although you can issue a small claim (anything less than £5,000) yourself, a solicitor can give you advice about the prospects of success and the most effective way of pursuing the matter. David Gray have an innovative fixed-fee debt recovery service so you always know what your costs are at every stage of the procedure. Throwing good money after bad makes little business sense so they advise on the most proactive methods of collection to get the right results quickly, whilst always taking the associated costs into account.
If you live in the North East and are in need of legal advice particularly legal advice Newcastle, get in touch with David Gray Solicitors to review your options.
David Gray Solicitors LLP provides you with a debt recovery solicitor in Newcastle. The firm prides themselves on providing a quick and effective service to ensure that you receive the debts owed to you and will see the process through from beginning to end, from sending an official letter to your debtors to representing your business in contested litigation should it come to that. Debt recovery shouldn’t leave you more out of pocket than you were before you started, which is why David Gray Solicitors provides a fixed fee for its debt recovery service and aims to recover its costs from your debtors rather than from you. Knowing that this is available to you enables you to move forward with confidence to successfully recover what is owed to you without any added stress or complications. Get in touch today by visiting http://www.davidgray.co.uk to see how they can help you recover what is rightfully owed to you and keep your business financially secure.