Debt Recovery Solicitors
Complex Debt and Asset Recovery Solicitors
Our commercial litigation solicitors offer a professional and efficient debt recovery service specifically tailored to our clients.
At Myerson we understand how important it is for every business to convert outstanding debts into payment as quickly as possible. This is why we offer a professional and efficient service to recover complex debts and assets on your behalf. It is often the case that creditors who move quickly to recover debts and assets achieve the greatest success.
Our partner-led team has particular experience in pre-action collection and recovery, Court proceedings, High Court enforcement proceedings, winding-up and other insolvency processes and high value claims over £30,000.
We can and have helped businesses across a range of sectors such as and including property and construction, travel, leisure and hospitality, textiles and creative industries, recruitment, manufacturing and engineering, care homes and e-commerce.
Through our membership of the MSI Global Alliance, we can also help with recovering debts and assets throughout Europe and the World.
Letter of Demand / Statutory Demand
All you need to do is send to us a completed commercial debt instruction form (available on request) and we will immediately send out a letter of demand (LBA) or statutory demand to the debtor. The LBA will demand payment within 7 days and threaten court proceedings if payment is not made within this time. If a statutory demand is sent, this will demand payment within 21 days and will threaten insolvency proceedings (either a winding-up petition or a bankruptcy petition) if payment is not made.
Issuing Court Proceedings or Insolvency Proceedings
We will contact you again (at the end of the 7 or 21 day period referred to above) to confirm whether or not the debtor has responded to the demand or settled the debt. If not, on receipt of your instructions and the appropriate court fee(s), we will issue court or insolvency proceedings.
It is important to note that for a winding-up petition to be issued against a company, the minimum debt owed must be £750 or over. For a bankruptcy petition to be issued against an individual, the debt must be £5,000 or over. Insolvency proceedings like these are normally only suitable where there is no dispute over the debt that is owed.
There are certain time limits by which debtors have to respond to court or insolvency proceedings. We will keep a note of those deadlines and advise you of the relevant next steps which will depend on whether and how the debtor responds to the proceedings.
If a debtor does not respond to court proceedings, then judgment can be entered against the debtor and we can then move quickly to enforce that judgment.
If a debtor does not respond to a winding-up petition or bankruptcy petition, then it is likely that the court will order that the company be wound-up or that an individual be made bankrupt. There will have to be a court hearing for the court to make such an order. We can represent you at those court hearings or instruct a specialist barrister on your behalf.
Unfortunately, obtaining a judgment against a debtor does not mean that you will automatically receive payment of the debt. The judgment is a court order that enables you to take further steps to enforce the judgment against the debtor to recover the debt.
There are a number of practical methods of enforcing a judgment and the method used will depend on the debtor’s assets. We will discuss with you your enforcement options and the cost of the same. Any background information that you have about the debtor will assist in deciding the most effective method of enforcement to use. A list of the more common enforcement methods are:
- Charging Order – this is a charge against the property of a debtor and places a restriction on the registered title of the property. The debtor will be unable to remove the restriction without your consent. Once you hold a charging order it is also possible to make an application to the court to sell the charged property to recover the judgment debt.
- Bailiffs – they can visit the property of the debtor and seize goods to the value of the judgment debt. Often, just the appearance of bailiffs persuades the debtor to pay.
- Attachment of Earnings Order – this is an order by the court that a debtor’s employer must pay some of the debtors earnings into court. The court then releases monies in part payment of the debt. This continues on a regular basis until the judgment debt is paid in full.
- Third Party Debt Order – this order is usually made against a bank or building society and orders a third party who owes money to the debtor to pay money to you in part or full satisfaction of the Judgment debt.
- Attend Court for Questioning – this is useful where you are uncertain what assets the debtor has. The debtor must attend court to answer questions about their assets or run the risk of being imprisoned for contempt.
- Statutory Demand – as well as being used in a pre-action stage (see above), statutory demands can also be used to enforce judgments against an individual or a company.
- Winding Up Petition – this is an application to the court to wind up a company on the basis that it is unable to pay its debts as they fall due.
- Bankruptcy Proceedings – this is an application to the court to make an individual bankrupt on the basis that they are insolvent and unable to pay their debts as they fall due.
Contact our Complex Debt and Asset Recovery Solicitors
If you are seeking legal advice regarding debt and asset recovery then please contact one of our specialist solicitors on 0161 941 4000, email us at email@example.com, or alternatively you can use the enquiry options found on the right of this page.