There are few things as frustrating as being owed money, especially by someone who is refusing to pay, or refusing to acknowledge the debt altogether. Despite your best efforts, you might find that recovering a debt is easier said than done. Luckily, there are steps you can take to begin legal proceedings for debt recovery. Below, we have taken a look at the legal process, and we’ve looked at how taking a debtor to court can help you to get your money.
What are the Legal Proceedings for Debt Recovery?
There are a number of steps that make up the legal proceedings for debt recovery, and it’s not simply a case of going straight to court. Before you begin the court process, you need to go through the other steps in the debt recovery process. This includes sending a Letter Before Action, issuing a claim and getting a county court judgement (CCJ).
Before you start legal proceedings, you should attempt to recover the debt yourself. This could involve contacting the debtor and reminding them of their debts, and trying to set up a payment arrangement with them. Sometimes, this is all you need to do, and many debtors will pay. Simply, the threat of further action is enough. However, that is not always the case.
If your attempts to recover a debt have not worked, you should send a formal Letter Before Action to the debtor. This will notify them of your intention to take them to court if they do not pay what is owed. If they ignore a Letter Before Action, you can issue a claim in a small claims court. The debtor will be served with the claim, and they will have a set amount of time to acknowledge and respond to it. Once the court has ruled that the debtor does in fact owe you the money, a CCJ will be made against them, making it a legal requirement that they pay by an agreed date.
Court Alternatives for Debt Recovery
Of course, there are court alternatives for debt recovery, and going to court is by no means your only option. Though using a small claims court can be an effective way of recovering a debt, it can also be time consuming and stressful. This is why a lot of people speak to a debt recovery agency, who will recover the debt quickly and in a cost effective way.
At Cobra Financial, we have a lot of experience in debt recovery. We use a range of techniques and methods to ensure that you receive the money that is rightfully yours as soon as possible. We know that the legal proceedings for debt recovery can be complex and overwhelming, but we are always here to help. To find out more about working with a debt recovery agency, get in touch with the Cobra Financial team.