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How Effective is Using the Courts to Recover Debts?

When you are owed money, your first thought might be to take the person to a small claims court. Though this is an option, it’s not always the best way to recover debts.

Using the Courts to Recover a Debt

There are a lot of things that can be done to recover a debt, one of which is taking your claim to a small claims court. This process involves proving how much is owed, who owes the debt to you and providing sufficient evidence to back up your claim. Though this is a viable debt recovery option, using the courts to recover a debt tends to be a slow process.

Taking a debtor to court can be a stressful, costly and time consuming task. We have recently taken on a client who has already already spent over £10,000 trying to recover their debt through the courts, and they are no closer to seeing any of the £52,000 that is owed. Despite having professional legal advice and following the court process meticulously, this client has now received a court date for April 2023. This means they have to wait another nine months before they have a shot of recovering any of the money owed to them, and they are already thousands of pounds out of pocket.

What are the Alternatives?

Thankfully, there are a number of more effective ways to recover debts and you are by no means limited to the court system.

Debt Recovery Agency

A lot of people enlist the help of a debt recovery agency, which is where Cobra Financial Solutions comes in. Instead of handling things yourself, you can hand everything over to our debt recovery specialists. Not only does this mean that a team of experts are taking care of things and your debt has the best chance of being recovered quickly, but it’s a low cost option compared to other options.

Money Claims Online

Money Claims Online is another option, and this involves you claiming your debt from the comfort of your own home. Though convenient, Money Claims Online can be complex. Not only do you need to prove that you have attempted to resolve the issue with the debtor, you will also need to pay an upfront fee to get things moving. These are two things that aren’t needed if you use a debt recovery agency.

Reach Out to the Debtor

You might want to reach out to the person who owes you money, as a way to confirm how much is owed and what the debt is for. You could do this by writing them a letter, sending an email, texting them or calling them. When you reach out to a debtor, you should avoid arguing and lengthy discussions. Refrain from doing anything that could reflect poorly on you and delay the process further.

Mediation

If you think reaching out and communicating with the debtor will work, you might want to give mediation a go. This service can be useful if you are struggling to come to an agreement with the debtor, and it gives you both a chance to state your case. Mediation is usually quicker and cheaper than going to court.

To find out more about any of our debt collection services, get in touch with our helpful team or give us a call on 0151 526 4222.

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