Recovery of Unpaid Invoices Solicitors
Recovering unpaid invoices can be a frustrating and time-consuming affair for any business. We recognise the needs for our commercial clients to pursue unpaid invoices efficiently and vigorously in a cost effective manner.
Our computerised Debt Recovery Service is operated by a specialist team of solicitors.
However, we aim to provide more than just a computerised system and pride ourselves on the level of service we provide to clients. We are able to recover debts of any size quickly and efficiently, with minimum cost to you.
Step one – Letter Before Action
The first step is to send out a letter before action. We aim to send the letter before action as soon as reasonably possible after receiving your completed instruction form.
The letter before action will demand payment within 14 days where the debtor is a business.
If the debtor is an individual, the Pre-Action Protocol for Debt Claims requires us to give the debtor 30 days to respond and/or make payment. If the debtor does respond with a reply form within the required period, then the protocol requires the creditor to wait 30 days from the date of receipt of the completed reply form (or from any request for disclosure of documents) before starting proceedings.
The letter before action may also include a claim for interest/costs and statutory compensation for late payment under the Late Payment of Commercial Debts (Interest) Act 1998 as follows:
- For debts up to £999.99 – £40
- £1,000 to £9,999.99 – £70
- £10,000 plus – £100.
Often, the letter before action prompts a response from the debtor.
Step two – Court proceedings or statutory demand
The second step, if no response is received, is to issue court proceedings or, if appropriate, serve a statutory demand on the debtor.
This will include a claim for the debt, court fees, costs, statutory compensation for late payment (where appropriate) and interest.
Interest can be recovered either:
- Under the terms of the contract with the debtor
- Pursuant to the County Courts Act 1984 – currently 8% from the due date of the invoice to Judgment
- Pursuant to the Late Payment of Commercial Debts (Interest) Act 1998 – currently 8% above the Bank of England base rate.
In some circumstances, a statutory demand may be served on the debtor. This would fall outside our debt recovery service and referred to our Insolvency team.
Step three – Enforcement
The third step, once Judgment has been obtained, is to enforce the Judgment. There are a number of enforcement options available, and we can instruct bailiffs under our fixed-fee debt recovery service.
If you wish to consider another method of enforcement, we will provide you with a quote for assistance.