Getting the money you are owed is not easy when you are running a business. That is because it is time-consuming and hard work. However,with the assistance of a debt collection solicitor,you can take legal action to recover your money. It is true that the debt recovery process might take a longer period to finish than you would like,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 process 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 are a few steps that debt collection solicitors take to help clients recover their debt.
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 such as interest rates and the costs of impending court.
Sending this letter is considered to be the first step. If the debtor does not respond within the seven days as required,then the debt collection company move on to the next legal step which is to help you,the creditor make a legal claim.
2. Make a Claim.
A court claim is usually started when the person that owes the money does not respond to the letter before action. At this stage,the debtor is given more legal documents that state how much he or she owes the creditor and is given approximately fourteen 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 does not respond to the court claim,then the debt collection agency will advise you on legal enforcement methods you can use recover your debt. Many of these methods 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 do not 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 30 days to clear their 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 agents help creditors to recover their debt through legal action. It is,however,important when looking for solicitors who are specialized in debt recovery,to ensure that they are licensed and offer quality services at an affordable cost.
For more information,please see https://www.laneandcosolicitors.com/