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Commercial Debt Recovery Solicitors: Our Expertise

commercial debt recovery solicitors

What is commercial debt recovery?

Commercial debt recovery solicitors specialise in assisting businesses in recovering outstanding debts from other companies, sole traders or individuals. We provide legal advice and representation throughout the debt recovery process. Our services may include sending demand letters, negotiating payment terms, initiating legal proceedings, and enforcing court judgments.

Our commercial debt recovery solicitors are highly knowledgeable in this field. We work to achieve the best possible outcome for our clients whilst working within the relevant laws and regulations surrounding debt recovery.

If you would like more information on our commercial debt recovery services, please do not hesitate to contact one of our expert debt recovery lawyers today to discuss your case.

What is the debt recovery process?

The commercial debt recovery process typically involves several stages. These may vary depending on the circumstances of the debt and the wishes of the creditor. It is worth noting that many of the debts our solicitors have assisted with have been resolved before progressing to formal legal proceedings, saving all involved parties precious time and money.

Commercial debt recovery stages

Pre-Action Protocol:

Before initiating legal action, creditors are encouraged to follow the Pre-Action Protocol for Debt Claims. This involves sending a Letter before Action/Letter of Claim to the debtor. The letter should provide details of the debt and allow them a reasonable time to respond (usually 30 days where the debtor is an individual but where the debtor is a company the period can be shorter). The debtor can respond with payment, a proposal for repayment, or by raising a dispute.

Negotiation and settlement: 

If the debtor responds to the Letter of Claim, negotiations may take place to reach a settlement agreement. This could involve agreeing on a repayment plan or a discounted settlement amount. Resolving the debt during the initial stages of negotiation is usually the most cost-effective option for both parties.

Issuing court proceedings:

If negotiation fails or the debtor does not respond to the Letter of Claim, the creditor may decide to take court action. This involves filing a claim with the appropriate court and serving the claim form and particulars of the claim on the debtor.

Judgment:

 If the debtor does not respond to the claim or disputes the debt, the court may issue a decision in favour of the creditor. This judgment confirms the debt owed and outlines any repayment terms ordered by the court.

Enforcement: 

If the debtor fails to comply with the court judgment, the creditor may take enforcement action to recover the debt. Enforcement options include seizing assets through a high court enforcement officer or obtaining a charging order against the debtor’s property. Other options include initiating bankruptcy proceedings (if the debtor is an individual) or a winding-up petition (if the debtor is a company).

Insolvency Proceedings:

In cases where the debtor is unable to pay their debts, insolvency proceedings such as bankruptcy or liquidation may be initiated to recover the debt through the insolvency process.

Common commercial debt disputes

In the world of business, commercial debt disputes can arise for various reasons. They often lead to disagreements and challenges between businesses. Some of the most common commercial debt disputes include:

  • Non-payment or late payment: This is perhaps the most prevalent issue, where a debtor fails to pay the agreed-upon amount on time or refuses to pay altogether. Reasons for non-payment can range from financial difficulties to disputes over the quality of goods or services provided.
  • Disputes over invoices: Disputes may arise regarding the accuracy or validity of invoices. This can include disagreements over pricing, quantity, or the scope of work performed, leading to delays in payment or refusal to pay until the issue is resolved.
  • Breach of contractWhen one party fails to fulfil their contractual obligations, disputes over payment can arise. This could involve a failure to deliver goods or services as agreed, substandard workmanship, or delays in completion, resulting in financial losses for the other party.
  • Quality of goods or services: If the delivered goods or services do not meet the agreed-upon standards or specifications, the debtor may dispute the debt, citing deficiencies or defects that need rectification before payment can be made.

Resolving commercial debt disputes often requires careful negotiation, legal expertise, and sometimes mediation or arbitration to reach a mutually acceptable resolution. Our commercial debt recovery team are able to help businesses navigate such disputes and recover the debts they are owed.

The benefits of utilising a commercial debt recovery solicitor

Utilising one of our commercial debt recovery solicitors at South Bank Legal offers several key benefits for businesses. Our solicitors bring specialised expertise and experience in debt recovery law, enabling us to navigate the complexities of the process efficiently and effectively. Our knowledge of relevant regulations and legal procedures ensures that debt recovery efforts comply with the law, reducing the risk of legal challenges or complications.

Our commercial debt recovery solicitors have many years of experience in using proven negotiation strategies to facilitate settlements and recover debts. This can often be done without the need for costly and time-consuming litigation. Our involvement in your debt recovery endeavour can lead to quicker resolutions and improved success rates compared to handling debt recovery internally.

Additionally, allowing a professional in the area of debt recovery handle the issue frees up valuable time and resources for your business. This allows you to focus on core operations while leaving the intricacies of debt recovery to us.

Why choose South Bank Legal?

Our team of commercial law solicitors at South Bank Legal can provide expertise in commercial debt recovery.

Our solicitors advise and assist on:

 

Additionally, our solicitors can provide legal advice on a wide range of other commercial disputes. These include intellectual property disputesshareholder disputes, and breach of contract remedies.

If you are currently dealing with a debt dispute or a commercial dispute, please contact South Bank Legal today. Our solicitors can offer an initial consultation to discuss your potential options going forward and our fixed fees.

You can contact us using the form below or telephone 02035765179 for a confidential discussion with one of our solicitors.

 

Get in touch today

 

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