What Do Business Debt Collection Solicitors Do?
Recovering debts is not straightforward when you are operating a business. That is because such activity can be time-consuming and stressful. However,with the help of a debt collection solicitor,you will have the ability to take legal action so that your interests are met. It is true that the debt recovery process might take a longer period to finish than you would expect,business debt collection solicitors offer you legal guidance until all the debts are recovered.
The Debt Recovery Process.
The first thing that debt collection solicitors do is to inform you as the client of the legal system used to recover debts. This will show you how this legal process works and how long it might take to have your case solved in a court of law. Here is a brief explanation of the process.
1. Letter Before Action Letter.
The initial action that the debt collection solicitors take is to send a letter before action to the debtor. The letter usually gives details of how much the debtor owes you as the creditor and gives the debtor at least seven days to respond to your claim. The Letter before action also gives details of other costs that may be involved such as interest rates and the costs of impending court.
Sending this letter is considered to be the first step. If the debtor does not reply within the seven days as required,then the debt collection company move on to the next legal step which is to help you,the creditor make a legal claim.
2. Making a Claim.
A court claim is usually made when the person that owes the money does not reply to the letter before action. At this point,the debtor is given more legal documents that state how much they owe the creditor and is given approximately fourteen days to meet the new terms set by the court claim. They are also told that they will be required to pay off the legal fees as well as the interest rates.
3. Actually Getting the Money.
If the debtor does not respond to a court claim,then the debt collection agency will advise you on legal enforcement systems you can use to get your money back. Some of these systems include high court enforcement,seizing movable property,seizing home or office,inquiring about debtor’s financial status,and enforcing insolvency.
4. Push For Judgement.
Sometimes debtors may fail to pay off their debt even after legal action. When this happens the debt collection solicitors make sure that the unpaid debts are published on the public records for debtors for at least six years. However,Moreover,the debtor is given a grace period of thirty days to clear their name from the public record. However,this has to be done within thirty days and the creditor must be willing to pay all the charges that are involved.
Business debt collection solicitors help creditors to recover their debt through legal action. It is,however,important when looking for solicitors who are specialized in debt recovery,to ensure that they are licensed and offer quality services at a reasonable cost.
For more information,please see https://www.laneandcosolicitors.com/