Greenwich Solicitors

Greenwich Solicitors debt recovery FAQs

Is it always worth trying to recover a debt ?

It depends on the size of the debt, the willingness on the debtor’s part to negotiate, how long ago the debt was owed and the strength of your case.  You should try and use a cost-benefit analysis when making a decision.    You might want to ask whether it will actually cost more to recover the debt than the size of the debt itself.  You might also want to consider why you are recovering.  It could be the case that you want to show other debtors your readiness to recover debts, which might make recovering other debts easier for you.  Consulting an expert debt recovery solicitor will enable you to clarify these matters.

A County Court Judgement has been given in my favour, but the debtor still refuses to pay.  What can I do ?

If judgment is in place, you can pay a fee and complete paperwork for the County Court bailiffs to attend the debtor’s property to request payment of the debt, however, the bailiff has no power to force entry to residential premises.  Alternatively, you could request for an attachment of earnings order, which will obligate the debtor’s employer to take a sum of money out of the debtor’s wages to pay the debt.  If the debt is owed money by a third party, you could request for an order to have the debtor’s debtor pay you directly.  You could also consider starting bankruptcy proceedings if the debt is larger than £750.

Will I have to go to court ?

It depends on how long ago the debt was owed, the size of the debt and the debtor’s willingness to negotiate.  In our experience, debtors are more likely to respond to a letter written by a solicitor than one from a debt recovery agency.  It is generally preferable to come to a settlement outside of court because it is cheaper, quicker and less stressful for you.

However, with particularly stubborn debtors, it may prove impossible to avoid court.  This is not a particularly bad thing, especially if the debt is smaller than £5,000.  For debts smaller than £5,000, you can apply to the Small Claims Track of the County Court, which is less formal than higher courts, cheaper and quicker.

I am owed money by a particularly valuable customer.  What approach should I take ?

It is prudent to be diplomatic, but firm in your approach and negotiating through a solicitor will help you to do this.  However, you should consider whether the customer is particularly “valuable” when they are refusing to pay money that is rightly owed to you.

Should I make compromises for the debtor ?

Instead of demanding full payment immediately, it is wise to try and come to a compromise with the debtor if you wish your claim to stay out of court.  You might want to negotiate part payment of the debt and agree on a repayment schedule.  You should do this formally in writing, as you will be able to rely on this in court if the debtor still refuses to pay.