If you’re struggling to recover money that’s owed to you, knowing how to navigate court claims, debt recovery and bankruptcy can help. Chasing debts can be a frustrating and time consuming process but, with the right knowledge, you can take the necessary steps to reclaim what’s rightfully yours.
Steps You Can Take to Recover a Debt
There’s only so many letters you can send and so many telephone calls you can make, especially when debtors refuse to acknowledge your requests. If a debtor is continually refusing to repay the money that they owe, you can take further action.
Court Claims
You can take court action against commercial and individual debtors. This involves filling out a form detailing the debt, filing them with the courts and paying the relevant fee. Once your claim has been issued, the court will serve it to the debtor. They will have 14 days to acknowledge the claim, and 28 days to respond. Unless they agree to the claim and admit that the money is owed, they will need to file a defence. The court will then take the next steps, weighing up all the information that’s been provided by you and the debtor.
If the debtor owes less than £10,000 your claim will likely be put on the small claims track. If this is the case, you’ll usually be able to recover some court fees and limited costs on top of the money owed, but not everything. Taking a debtor to court can be time consuming and long delays are common, which is why a lot of people choose to enlist the help of a debt collection agency instead.
Insolvency and Bankruptcy
If you have a commercial debtor with a debt of more than £750, you can ask the court for a winding up order. This threatens the debtor with insolvency, which is often enough to convince them to pay. If you have an individual debtor, and they owe more than £5,000, you can ask the court for a bankruptcy order. If this is granted, the debtor’s assets can be used to pay off the debt.
Debt Recovery Specialists
Of course, going to court, insolvency and bankruptcy are all time consuming ways to chase a debt. This is why it’s often best to get a debt collection agency on the case. Debt collection experts – such as the team here at Cobra Financial – have a range of tools and techniques available to them, all of which are tried and tested. Whether you’ve got a small invoice that’s outstanding or a much larger sum of money to chase, our experienced debt collection experts will ensure it’s paid as soon as possible.
With Cobra Financial on hand to help, recovering debts is straightforward, simple and streamlined. You can sit back and relax, knowing that your debts are being chased by experts. Contact us today to find out more.
