There are several ways of commercial debt recovery in Great Britain, which depend on the following factors:
- Who the debtor is: a company or an individual;
- Money amount;
- How long there is a debt;
- Debtor status: whether it is bankrupt or has assets.
The collection process can be divided into two stages – extra judicial and judicial. If the debt collection process looks financially viable, then there are several options for recovering funds:
- Litigation
The process of debt recovery depends on the size of the debt: the larger the debt, the longer the consideration process will take. This, in turn, can affect the debtor’s financial circumstances, which may change over time.
- Formal demand for debt repayment
A formal demand for debt repayment is used to indicate the need to repay the debt. While the process for filing a claim is straightforward, it should be legally enforceable. For this, there are certain requirements, for example: – the term of the debt should not exceed six years; also the formal demand document must be properly “delivered” to the debtor. When a debtor receives a formal demand to pay off a debt, he has 21 days for this. In this case it must be at least £ 5 thousand (for legal entities £ 750). A debtor can dispute a formal claim for paying off a debt. He must submit an application to the court with a request to postpone it. The company, in turn, can only attempt to stop the process.
Both of the discussed debt collection options are effective. Even an initial letter from lawyers notifying of the beginning of a trial or the preparation of a formal demand, in itself, can bring the desired result.
Thus, searching for “debt recovery UK” you know more now. Good luck!
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