As a team of specialists using our custom designed software and the latest techniques, we can offer a service which is unrivalled. With debt recovery, upon receipt of new instructions we immediately identify who the debtor is, carry out some initial investigatory work – such as a free Companies House search and initial asset check.
Once we are happy we know who the debtor is, we send them a “letter before action” (otherwise known as a LBA or pre-legal letter) informing the debtor that we are now instructed. We list the outstanding invoices or dishonoured cheques and give notice of dishonour, if relevant. We add in additional late pay charges and interest (if relevant) and we give the debtor 7 days to pay the grand total. We aim to get LBAs dispatched on the day of instruction providing that we have received the information in full by 2pm and that no further tracing or identification is required. At the same time as sending the LBA we write to you to confirm receipt of your instructions and state that the LBA has been sent. We also notify you of the sum that we are now seeking (including any interest).
If the LBA is unanswered or you are not satisfied with the response received from the debtor we then seek your instructions about issuing a County Court claim. This is sent to the local County Court to be issued. We once again write to you to confirm this is the case. The Court serve the claim form and notify us that they have done so and the date by which the debtor has to respond. We again notify you to ensure that you are aware of exactly where you are with each case and each stage of the proceedings.
The debtor has 14 days to file an acknowledgement of service and a further 14 days after that (only if they have filed the acknowledgement of service) to file a defence. If a valid defence (in accordance with the rules) is filed then the matter is passed to our skilled dispute resolution department who will advise you on the manner in which to proceed with your claim. Our debt recovery fixed fee structure only applies to non-contested matters.
If the defence is not valid (by not complying with the rules) we will retain the file and make an application for striking-out the defence. We will, of course, advise you of the best way to proceed at every stage. If no acknowledgement of service or defence is filed we will apply for Judgment in Default (this is known as a CCJ – a County Court Judgment) against the debtor. We will send this to the debtor giving them 7 days in which to pay before we proceed with enforcement. We then write to you at the same time and discuss the various methods of enforcement.
For further information contact a member of our Debt Recovery and Insolvency team.
Furley Page Solicitors' 'helpful and knowledgeable' team recently acted in a €2m debt recovery matter for a Spanish law firm.
Furley Page is recommended by The Legal 500 for advising on Debt recovery.
The Legal 500 2012 : Debt recovery