Getting the money you are owed is not straightforward when you are running a business. That is because it is time-consuming and stressful. However,with the help of a debt collection solicitor,you can take legal action so that your interests are met. Even though the debt recovery process might take longer to complete than you would like,business debt collection solicitors offer you legal guidance until all the debts are paid.
The Debt Recovery System.
The first thing that debt collection solicitors do is to go through the whole process of recovering debts. This will help you understand how this legal process works and how long it might take to have your case resolved. Here is a brief explanation of the process.
1. Letter Before Action Letter.
The initial action that the debt collection solicitors take is to send a letter before action to the debtor. The letter normally gives details of how much the debtor owes you giving them 7 days to pay or respond to your claim. The Letter before action also gives details of other charges that may be incurred such as interest rates and the costs of impending court.
Sending this letter is thought to be the first step. If the debtor does not respond within the seven days as required,then the debt collection solicitors move on to the next legal step which is to help you,the creditor make a legal claim.
2. Making a Claim.
A court claim is usually started when a debtor does not respond to the letter before action. At this stage,the debtor is given more legal proof that state how much he or she owes the creditor and is given approximately 14 days to meet the new terms set by the court claim. They are also told that they will be required to pay off the legal fees as well as the interest rates.
3. Actually Getting the Money.
If the debtor fails to respond to a court claim,then the debt collection solicitors will advise you on legal enforcement systems you can use to get your money back. Many of these systems include high court enforcement,seizing movable property,seizing home or office,inquiring about debtor’s financial status,and enforcing insolvency.
4. Push For Judgement.
Sometimes debtors may fail to pay off their debt even after legal action. When this happens the debt collection solicitors make sure that the unpaid debts are published on the public records for debtors for at least six years. However,Moreover,the debtor is given a grace period of 30 days to clear his or her name from the public record. However,this has to be done within 30 days and the creditor must be willing to pay all the charges that are involved.
Business debt collection solicitors help creditors to get the money that are owed through legal action. It is,however,vital when looking for solicitors who are specialized in debt recovery,to ensure that they are licensed and offer quality services at a reasonable cost.
For more information,please see https://www.laneandcosolicitors.com/