Getting the money you are owed is not straightforward when you are operating a business. That is because such activity can be time-consuming and hard work. 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 finish than you would like,business debt collection agents offer you legal help until all the debts are recovered.
The Debt Recovery System.
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 show you how this legal process works and how long it might take to have your case solved in a court of law. Here are a few steps that debt collection solicitors take to help clients recover their debt.
1. Letter Before Action Letter.
The first legal process that the debt collection agents take is to send a letter before action to the debtor. The letter normally states how much the debtor owes you as the creditor and gives the debtor at least seven days to respond to your claim. The Letter before action also states other costs 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 reply 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. Making a Claim.
A court claim is usually started when the person that owes the money does not reply 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 14 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 does not respond to the court claim,then the debt collection solicitors will advise you on legal enforcement methods you can use recover your debt. Many of these methods include high court enforcement,seizing property,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 his or her name from the public record. However,this has to be done within thirty days and the creditor must be willing to pay all the charges that are involved.
Business debt collection agents 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 make sure that they are licensed and offer quality services at a reasonable cost.
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