Recovering debts is never easy when you are operating a business. That is because such activity can be time-consuming and stressful. However,with the assistance of a debt collection solicitor,you will have the ability to take legal action so that your interests are met. It is true that the debt recovery process might take a longer period to complete than you would expect,business debt collection agents offer you legal help until all the debts are recovered.
The Debt Recovery Process.
The first thing that debt collection solicitors do is to inform you as the client of the legal system used to recover 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 agents take is to send a letter before action to the debtor. The letter usually states how much the debtor owes you giving them 7 days to pay or respond to your claim. The Letter before action also states other charges that may be incurred like 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 made when the person that owes the money does not respond to the letter before action. At this point,the debtor is given more legal documents that state how much they owe the creditor and is given approximately fourteen days to meet the new terms set by the court claim. Furthermore,the debtor is also required to pay off the legal fees as well as the interest rates.
If the debtor fails to respond to a court claim,then the debt collection agency will advise you on legal enforcement methods you can use to get your money back. Some of these methods include high court enforcement,seizing movable property,seizing home or office,inquiring about debtor’s financial status,and enforcing insolvency.
4. Pushing For Judgement.
Sometimes debtors may fail to pay off their debt even after legal action. When this happens the debt collection agents 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 thirty days to clear their name from the public record. However,this has to be done within thirty days and the creditor must be willing to pay all the costs.
Business debt collection agents help creditors to get the money that are owed through legal action. It is,however,important when looking for solicitors who are specialized in debt recovery,to make sure that they are licensed and offer quality services at an affordable cost.
For more information,please see https://www.laneandcosolicitors.com/