There is no denying the stress and worry that comes with being owed money, especially if it’s a substantial amount and you are feeling the financial strain of being without the funds that are rightfully yours. This is why it’s important to know your debt recovery options and familiarise yourself with how to chase a debtor.
Letter Before Action
One of the first things that you can do when you’re recovering a debt in the UK is send a Letter Before Action. This is a letter that can be sent to your debtor demanding payment, and it’s often enough to encourage them to pay. Not only is a Letter Before Action a quick and easy debt collection option, but it often results in a payment without you needing to take further, more costly action.
Small Claims Court
Another option is to pursue things via small claims court. This option can be used to recover debts of up to £10,000 and it can be effective. However, there is the risk of the process being slow and bureaucratic, especially as there are regular delays and backlogs. There is little compulsion for your debtor to actually pay the outstanding debt when you go to small claims court, as letters and judgements can often be ignored.
County Court Judgement
If your debtor still refuses to pay after you have issued a Letter Before Action and you have been through the small claims court process, you can apply to the County Court for a County Court Judgement (CCJ). Though they can sometimes be effective, CCJs can take a while to obtain and they are sometimes denied. As is the case with going to small claims court, CCJs are regularly ignored by debtors, and you could have little recourse to obtain your money this way.
Debt Collection Agency
Trying to recover a debt and failing can be hugely stressful, especially if you feel as though you are running out of time. Luckily, a debt collection agency is always an option. Instead of handling the debt recovery process yourself, you can hire a debt collection agency to collect the debt on your behalf. Debt collection agencies are experienced in dealing with debtors of all kinds, and a professional can often be successful in collecting debts that you would not be able to collect yourself.
At Cobra Financial, we have a lot of experience in debt collection and debt recovery, and we are always on hand to help you to recover money that’s rightfully yours. Whether it’s a business that owes you money or a customer that hasn’t paid, you can rely on our expert team to handle things. The sooner you enlist Cobra Financial, the sooner your debt will be recovered. Contact us today to find out more.