Debt Recovery Service For Unpaid Invoices

For many businesses, cash flow is very important and unpaid invoices can have a crippling impact on your finances. If a business does not collect its debts, it can quickly run into financial difficulties.

Debt recovery is the process of getting money that is owed to you or your company. This can be done through a variety of methods, including sending letters, making phone calls, and taking legal action.

What are the different stages of debt recovery for unpaid invoices?

The different stages of debt recovery are:

• Pre-Action Stage: This stage involves sending letters and making phone calls to the debtor. The aim of this stage is to get the debtor to pay the debt voluntarily, or face legal action.
• Litigation Stage: If the debtor does not pay the debt voluntarily, then we can send a Letter Before Action to the debtor and take enforcement action. This could involve issuing a County Court Claim or a High Court Claim. There may be other options available and this can be discussed over the phone with our Legal Direction, Mr Usman Anwar.
• Enforcement Stage: If the creditor is successful in court, they may need to enforce the judgment. This could involve taking steps such as bailiff enforcement or bankruptcy proceedings.

What is a Letter Before Action?

A Letter Before Action is a formal letter that is sent to the debtor before court action is taken. The letter sets out the creditor’s claim and warns the debtor that legal action will be taken if the debt is not paid.

It is important to distinguish between a Business to Business debt and Business to Consumer debt. For the latter, the creditor needs to comply with the Pre-Action Protocol for Debt Claims.

What should be included in a Letter Before Action?

A Letter Before Action should include the following information:

• The name and contact details of the creditor,
• The name and contact details of the debtor,
• The amount of the debt and a copy of the invoice,
• The date on which the debt was due,
• A description of the goods or services that were supplied,
• A demand for payment,
• A warning that legal action will be taken if the debt is not paid.

We offer a Fixed Fee legal service for Debt Recovery claims. If you wish to use our legal services then please complete the Contact Us Form, or email us on hello@anwarlegal.co.uk

What are the different types of legal action that can be taken for unpaid invoices?

The different types of legal action that can be taken to recover an unpaid invoice in the following way:

• County Court Claim – this is for claims valued beween £100 to £99,999.99
• High Court Claim – this is for claims in excess of £100,000+.
• Bankruptcy proceedings – this is for pursuing an indisputable debt against an individual and it is unlikely the individual has money to pay the debt. The amount in debt must be in excess of £5,000.
• Winding Up Proceedings – this is for pursuing a company for an indisputable amount of debt and it is unlikely the company has money to pay the debt.

How to choose the right type of legal action for unpaid invoices?

The right type of legal action will depend on the amount of the debt and the circumstances of the case. In some cases, it may be possible to recover the debt through a County Court Claim. In other cases, it may be necessary to take High Court action.

The costs of legal action can be high. Therefore, it is best to consider whether the debtor has any assets before starting any legal action. However, in some cases, the creditor may be able to recover their legal costs from the debtor. It is best to seek independent legal advice before starting Court action for Busines De

What is a judgment?

A judgment is a decision made by a county court that a debt is owed. A judgment can be enforced by taking steps such as bailiff enforcement or bankruptcy proceedings.

A judgment is an abbreviation of County Court Judgment or ‘CCJ’. It is important a judgment is not ignored and legal advise is obtained, if you wish to set-aside the judgment.

How to enforce a judgment for unpaid invoices?

There are a number of ways to enforce a judgment. The most common methods are:

• Bailiff enforcement: This involves the bailiffs seizing the debtor’s assets and selling them to pay the debt.
• High Court Enforcement Officers: This involves instructing enforcement officers who are privately paid to enforce a High Court Writ for enforcement which includes multiple visits to the debtor’s residential dwelling.
• Bankruptcy proceedings: This involves the debtor being made bankrupt and their assets being distributed to their creditors.

Any party involved in a Debt Recovery for unpaid invoices should carefully consider whether early mediation is a possibility to negotiate a settlement. Mediation can be highly successful. For more information, read our blog Mediation and Alternative Dispute Resolution (ADR).

Contact Us

If you need help with an Unpaid Invoice, you can book a Consultation Call with the team at Anwar Legal by completing the Contact Us Form or emailing us on hello@anwarlegal.co.uk

Still not convinced? Read some of our business client’s success stories and testimonials on how they settled their business disputes using our legal service.