Debt & Litigation Law
Whether you are an individual, self-employed, employed or a business owner yourself, we can help you with any debt and litigation issues. Being owed money, owing money, or someone claiming you owe money when you don’t, is an incredibly stressful time. Legally you might not be sure where you stand. If you are owed money, you might now know whether you are ever going to be able to claim that, how to go about claiming it and whether trying to claim the money is financially a viable option for you. Equally, if someone is chasing you for money you are unable to pay, or trying to claim money out of you that you don’t believe you owe, you might ne unsure as to what to do and might even consider just paying to end the situation. Debt and litigation, can be messy, complex and time consuming, unless you seek the help of a legal professional.
My debtor won’t pay the money they owe, what do I do?
There is a standard process we need to go through when it comes to collecting debts and unfortunately, it can be a lengthy and costly process for you. If the debtor owes you a small amount and you have the financial means to write off the debt, then that is an option for you. In this situation the amount the debtors owes is important. The larger the debt is, the more likely you should be to proceed with legal action.
What is the process of debt collection?
First, you need to invoice the individual/company who owes you money and give them a reasonable time to pay. You can’t proceed with legal action if you haven’t given the debtor enough time. The next step is to issue reminders and speak to the debtor to understand if there is a reason for the delay in payment. If they are struggling financially, you have to be more flexible and try to find a way to support them, while also reclaiming the money they owe. If this doesn’t work (if they fail to respond to your reminders) the next stage is to start legal proceedings. The first step here is a letter before action, essentially a letter explaining that you will be taking the debtor to court, in many cases this is enough to get the debtor to pay or at least implement a payment plan.
Can I create my own letter before action?
Yes, you can, you can find a template and simply customise this for your situation. Doing it this way is free and simple. However, do remember that the debtor is more likely to pay if they are being threatened legal action by a solicitor or legal firm, rather than an individual.
What if a debtor doesn’t pay after a letter is sent?
After a letter before action has been send, if the debtor still hasn’t paid and/or hasn’t communicated why to you, then you can proceed legally. This is a county court claim that is raised by the creditor (you). Again, you can handle this process yourself, but you are much more likely to be successful in the claim if you use a reputable solicitor who can make sure your claim is backed up by adequate supporting documentation and evidence.
Find Me a Solicitor is an independent free service for individuals or businesses looking to find the right solicitor.
I have a large debt and I can’t afford to pay, what can I do?
The first step is to speak to the company or individual you owe the money too and try to find a healthy resolution. Offer something like a reduced payment plan showing your willing to pay off your debts, but within your financial limitations. If the other party is reluctant to accept, or is proving completely unhelpful you should seek legal advice, a solicitor is much more likely to get a creditor to accept a payment plan as they know the laws and rules regarding debt collection and providing support to people in financial difficulty.
Can I get advice on tax?
Yes, out debt litigation specialists are also experienced in helping with tax issues that arise.
Summary
Recovering money owed to you can feel like a lengthy and stressful process that is infuriating for you personally and potentially damaging to your business.
In the event of a large amount of money being owed to you (i.e. a higher amount than you are willing to write off), you will need to proceed with legal action and for this, you will need the help of a specialist debt litigation solicitor.
If you proceed without a solicitor, your debtor disputes the debt and the court sides with debtor, then you won’t get your money back but you will have to pay the legal fees for your efforts (including court costs etc).
To avoid being faced with legal fees from an unsuccessful claim, the best thing you can do is to seek legal advice.
Equally, if you are someone who is in debt and is struggling to pay the money you owe (or you contest the debt), you also need to seek legal action to understand your rights. If you contest a debt and the court decides you must pay it, you will then be liable for the debt amount, plus the costs of legal fees.
A debt litigation solicitor will take the time to understand the situation, the amount owed and why this amount is still outstanding and from this they will determine how successful you are likely to be in either claiming debts owed to you, or disputing debts. Be advised, the solicitor can never say for sure who will win in a court of law, they can only make their best guess based on the information you provide.
To discuss your debt litigation requirements, call us today.
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