Debt recovery can be a real challenge for businesses. When a business is owed money or chased for payment that is outstanding, it is likely that a debt claim could follow if matters cannot be resolved. Our solicitors act for both claimants and defendants in debt recovery claims.
Disputes in relation to debt recovery claims may include late payment of an invoice, failure to pay an invoice or an issue with goods or services which in turn result in the non-payment of an invoice. Straight forward debt matters can often become rather complex where the debt is disputed due to problems with the delivery of the goods and services. Therefore, before taking court action, there are a number of options you may consider taking:
If you are claiming a debt from another party, it is worth first checking whether your opponent has sufficient assets before commencing a claim. Afterall, a successful judgement may be meaningless, unless there are sufficient assets to enforce the judgement against. Our solicitors can assist you in ascertaining whether there are likely to be sufficient assets before commencing a claim.
If you continue with a money claim, you may wish to consider the following:
If an individual or company owes money, it may be possible to serve a statutory demand. Once a statutory demand is served, if the debt is not paid within 21 days, a claimant can apply to wind up the company or make the individual bankrupt.
A statutory demand can only be issued where there is no dispute surrounding the sums of money owed and where the debt is more than £750 for company debtors and equal to or more than £5,000 for individual debtors. It is important to note that the Corporate Insolvency and Governance Act 2020 has amended thresholds until at least 31 March 2022 in relation to commercial tenancies that are unpaid by reason of a financial effect of coronavirus. For other debt there is a new threshold of £10,000 for winding up petitions that takes precedence over the £750 threshold for statutory demands.
If you are a debtor and believe that you have incorrectly received a statutory demand, it may be possible to apply to have it challenged or “set aside”. Our solicitors can assist in the merits of any such application.
Whether you are a claimant or defendant to a debt recovery action, the solicitors at Wyn Legal will help you: