Debt recovery process

Pre-action collection

We are happy to accept instructions by email, post or fax asking us to send a letter before action demanding payment from the debtor within 3, 5 or 7 days or within any other timescale you stipulate.  We will tailor the content and tone of the letter to suit your needs and write to you confirming when payment is due.   We will discuss with you what course of action or proceedings are suitable in each particular case once the time for payment has expired.

For further details or to obtain a copy of our instructions form see send a letter before action.

Court proceedings

If having discussed the options available you decide that County Court proceedings should be issued we are generally able to prepare and send the proceedings to Court within 24 hours.  If the debtor does not respond within 14 days of service of the proceedings, or fails to file a defence within 28 days, or make payment, we will, after contacting you, apply for judgment to be entered on your behalf in respect of the debt, interest and costs.  If judgment is obtained we will discuss with you the appropriate enforcement methods.  If the claim is defended you will be notified and we will review with you the merits, risks and costs of pursuing the claim.  If you wish to proceed the matter will be referred to our dispute resolution department.

If a statutory demand, bankruptcy petition or winding up petition is appropriate we will discuss the benefits of these procedures with you and aim to issue a petition or arrange service of a statutory demand these within 2 working days of receipt of your instructions.

For further details see Issue County Court proceedings,  Serve a statutory demand or Issue a winding up petition.

Bankruptcy and Winding up

Bankruptcy proceedings (for individuals) and Winding Up proceedings (for companies) can be an extremely effective method of recovering outstanding undisputed debts.

Bankruptcy

In bankruptcy proceedings, a statutory demand must be served before a bankruptcy petition can be issued, unless a Bailiff or Sheriff has been unable to recover monies due under an existing money judgment, The debt must be over £750.  The debtor has 21 days from service of the statutory demand to pay the debt or 18 days from service to challenge the demand.  If the debtor does not challenge the demand or pay, a bankruptcy petition can be issued.  If payment is made after the issue of the petition an order for costs is usually made in your favour.

For further details see Serve a statutory demand.

Winding Up

We will usually send a letter before action demanding payment.  In Winding Up proceedings we can serve a statutory demand, although this is not mandatory.  If payment is not received then a Winding Up petition can be issued and served on the debtor company.  If the debt is paid after a petition is issued an order will usually be made that the costs of the petition are also paid by the debtor.

We find the issue of Winding Up proceedings extremely effective in recovering undisputed debts. Some of our recent successes include

Client A a Lithuanian company recovered over £80,000 which had been outstanding for 12 months together with costs from a company that had allegedly ceased to trade.

Client B was unable to recover a debt of £4,500 through their existing solicitors using County Court proceedings.  KJD issued a petition and payment in full (plus costs) was received within 28 days.

Client C had an undisputed debt of £2,000 outstanding for 6 months.  A petition was issued and payment made in full (plus costs) within 9 days of the petition being issued.  The debtor was so impressed that they now use KJD's services themselves.

Client D was owed £10,000 and its sister company £32,000.  The bank acted for the sister company in attempting to recover its debt and issued County Court proceedings.   KJD's clients debt was undisputed so we issued a petition.  We received payment in full (plus costs) within 6 days of the petition being issued.  The Company entered into receivership within days of our petition being withdrawn and the sister company did not receive payment.

Client E had a debt of £25,000 which was recovered in full from a company that initially claimed it was not liable for the majority of the debt.  The winding up petition was issued and served on a Friday and payment received on the following Monday.  The debtor agreed to pay the cost's of the petition and the petition was withdrawn on the Wednesday.

For further details see Issue a winding up petition.