What does debt & debt recovery involve in the UK?
- Chasing overdue payments: Sending formal reminders and letters before action to encourage prompt settlement.
- Negotiating repayment plans: Arranging instalment schedules that work for both creditor and debtor to avoid court proceedings.
- Court claims: Issuing a claim through the County Court or High Court if initial efforts to recover debt fail.
- Enforcement: Using methods like bailiffs, attachment of earnings orders, or charging orders to secure repayment once a judgment is obtained.
- Insolvency procedures: Considering bankruptcy (for individuals) or liquidation/administration (for companies) if debts cannot be repaid.
How can a solicitor help with debt & debt recovery, and what does it cost?
A commercial solicitor or debt recovery specialist can:
- Draft legal demands: Ensuring letters before action comply with pre-action protocols and set out clear terms for repayment.
- Negotiate settlements: Working towards repayment plans or reduced balances to avoid the delays and costs of litigation.
- Represent you in court: Filing claims, handling procedural requirements, and advocating for a judgment in your favour.
- Enforce judgments: Advising on the best enforcement method—whether that’s bailiffs, attachment of earnings, or winding-up petitions.
Costs depend on the size and complexity of the debt, as well as the solicitor’s experience. Many firms charge £150–£300 per hour, although fixed-fee packages may be available for straightforward cases. An initial consultation (often free) is a good opportunity to discuss your options, estimate fees, and decide the most cost-effective way to proceed with debt recovery.