Debt Recovery – What Are Your Options When Someone Owes You Money?

If someone owes you money, whether you’re a business owner chasing unpaid invoices or an individual trying to reclaim personal debts, the process can quickly become frustrating, time-consuming and, in some cases, costly.

At Ashtons Legal, we understand how important it is to recover what you’re owed efficiently, fairly and with as little stress as possible. Our experienced debt recovery team are here to help guide you through the process and advise on the most appropriate course of action for your situation.

Understanding Debt Recovery

Debt recovery is the process of getting back money that is legally owed to you. This might include:

• Unpaid invoices for goods or services
• Loan repayments from individuals or businesses
• Rent arrears from tenants
• Outstanding fees or contractual payments

While it’s a common part of doing business or dealing with financial matters, that doesn’t make it any less stressful, especially when it starts to affect your cash flow or personal finances.

Where to Start: Communication is Key

The first step is always to attempt informal communication. A polite reminder, whether by phone, email, or letter, can often resolve the matter without needing to take further action. People can forget or miss payments for genuine reasons, and a simple prompt may be enough.

If informal contact doesn’t result in payment, the next step is usually a formal Letter Before Action (‘LBA’). This letter sets out:

• The amount owed
• The basis for the debt
• A deadline for payment (typically 14 days for a Company debtor, 30 days for an individual debtor)
• Notification that legal proceedings may follow if payment isn’t made

We can draft a clear and legally sound letter that encourages swift action.

When You Need to Take Legal Action

If the debt remains unpaid after your LBA, you may wish to issue a claim through the courts. This is known as a County Court Claim and can lead to a County Court Judgment (‘CCJ’) being registered against the debtor if they do not respond or dispute the claim.

In many cases, the threat or receipt of a court claim prompts payment. However, if the debtor still refuses or is unable to pay, you may need to consider enforcement options such as:

• Instructing bailiffs (now known as enforcement agents)
• Charging orders (securing the debt against a property)
• Attachment of earnings (deducting payments directly from the debtor’s wages)
• Third-party debt orders (recovering funds held in bank accounts)

Our team can advise on the most effective method based on your circumstances and the debtor’s financial position.

Is Debt Recovery Worth It?

Before starting formal proceedings, it’s worth considering:

• Can the debtor pay? If they have no assets or income, enforcement may not be successful.
• Is the amount worth pursuing? Costs can mount if legal action is needed, though we aim to keep things proportionate.
• Will this damage a business relationship? Sometimes, preserving goodwill may be more important than recovering the debt.

We’ll always provide honest, realistic advice, including whether it’s in your best interest to proceed.

How We Can Help

At Ashtons Legal, our debt recovery service is designed to be straightforward and cost-effective. Whether you need help with one-off debts or ongoing debt recovery support, we offer:

• Tailored legal advice
• Transparent fees
• Quick turnaround on letters before action
• Skilled negotiation and dispute resolution

Our aim is simple: to help you recover what you’re owed without unnecessary stress or delay.

Need a Straightforward, Low-Cost Solution? Try Our Fixed Fee Scheme

At Ashtons Legal, we offer a Fixed Fee Debt Recovery Scheme to give you certainty and peace of mind when it comes to costs. This service is ideal for businesses dealing with unpaid commercial invoices, and includes:

• A Letter Before Action from a solicitor on Ashtons Legal letterhead
• A County Court Claim is issued if no response is received
• Requesting default judgment where appropriate
• Transparent, fixed fees at each stage

We act quickly and professionally, helping you demonstrate to your debtor that you’re serious about recovering the money owed.

What does it cost?

Our fixed fees are designed to be competitive and proportionate to the debt being recovered. You only pay for the work needed, with no hidden charges. Full details of our pricing can be found on our Fixed Fee Debt Recovery page

Need Help with Debt Recovery?

If you’re owed money and not sure what to do next, speak to one of our experienced debt recovery solicitors today. Our specialist Debt Recovery team has extensive experience in resolving the points raised in this article. If you have any questions, please get in touch with our specialist Debt Recovery Team by using our online enquiry form, calling 0330 404 0738 or visiting your nearest Ashtons Legal office.

We’re here to help you take control and move forward.