EFFECTIVE DEBT COLLECTION.......

Many companies may offer debt collection services, how do you know who to choose and in the end who will be most effective at getting your money? If you have tried every available avenue yourself then why would another company sending a letter work any better?

Ok, sometimes it does – sometimes people may be frightened when they receive a letter from a third party but this is a very small percentage.

You need to decide what action you are prepared to take. Effective debt collection will cost you; this is not fees but court costs. There are lots of routes you can go down to collect a debt BUT you need to ensure that you follow the correct procedures before each step.

For example, if the debt is owed to you by a Limited Company you can issue a Winding-Up Petition if the debt is over £750 – this in effect means that if the company doesn’t pay or doesn’t offer you an acceptable amount / instalment then the company will be “wound up”.

If the debt is owed to you by a Sole-Trader / Individual then you can get a Stat Demand issued for bankruptcy – this can be very effective if the debtor owns their own property. If they do own their own property then another option would be a “charging Order” on their property.

As with everything there are pro’s and con’s – especially with the bankruptcy route – if the debtor doesn’t own any assets then you are not likely to see your money and may be a blessing in disguise for them as it will not only wipe out your debt but other as well.

If you are owed monies then it is best to get advice. We offer free informal advice therefore if you wish to discuss anything then please get in touch:-

0800 4 96 95 94 or EMAIL