Personal Debt Recovery

Costs depend on whether the debt is disputed and how much enforcement is needed. Contact us for a quote based on your circumstances. Court fees depend on the value of your claim. For disputed debts or complex enforcement, we charge hourly rates and provide detailed cost estimates. We can often recover legal costs from the debtor if we win, and conditional fee agreements might be available in some circumstances, subject to a risk assessment. We provide full cost breakdowns before you appoint us.

Timescales vary significantly. The first step is sending a formal letter before action and allowing the debtor time to respond. If they don’t pay, we can issue court proceedings and apply for judgment. Enforcement can take several months depending on the method used and the debtor’s cooperation. Defended claims requiring court hearings take longer, depending on complexity and court availability. Many debtors pay after receiving formal letters, resolving matters within weeks rather than months.

If debtors genuinely have no assets or income, recovery may be impossible regardless of obtaining judgment. We conduct checks on debtors before advising whether to proceed, though debtors’ circumstances can change. Judgments remain enforceable for six years and can be renewed, so if the debtor’s finances improve later, you can enforce then. Sometimes the threat of bankruptcy or winding up proceedings prompts payment even when debtors claim poverty. We advise realistically on prospects of recovery.

Yes, you can usually recover interest on debts. If your contract includes an interest clause, you can claim contractual interest. Otherwise, you can claim statutory interest from when the debt became due until payment, at the rate set by law. You can also recover legal costs if you win, though costs awards don’t always cover 100% of your actual costs. Court fees are usually recovered from unsuccessful defendants. We include interest and costs in our claims and maximise your overall recovery.

If debtors defend claims, you must prove the debt at trial unless you can obtain summary judgment. Summary judgment is available when defendants have no real prospect of successfully defending, avoiding full trials. Defended claims are more expensive and time-consuming than undefended claims. We assess the strength of defences and advise whether to pursue claims to trial, seek summary judgment, or negotiate settlements. Sometimes defendants raise spurious defences simply to delay payment.

Several enforcement methods exist depending on the debtor’s circumstances. High Court enforcement officers (bailiffs) can seize and sell debtors’ goods. Attachment of earnings orders deduct money directly from employed debtors’ wages. Third party debt orders freeze and seize money in debtors’ bank accounts. Charging orders secure debts against property the debtor owns, with potential orders for sale forcing property sales. For debts above the statutory threshold, statutory demands can threaten bankruptcy (individuals) or winding up (companies). We advise which methods suit your specific situation.

Payment by instalments is better than non-payment, but involves risk that the debtor stops paying. If you accept instalments, ensure they’re documented in a formal agreement and the debtor acknowledges the full debt. If the debtor has obtained a county court judgment, they can apply to pay by instalments the court considers reasonable even if you object. Sometimes accepting reasonable instalments voluntarily is better than the debtor applying to court. We advise on whether proposed instalment terms are acceptable.