LEGAL NEWS

Sorting the ‘Can’t Pays’ from the Won’t Pays!

Solicitors are often wrongly perceived as being expensive for debt recovery work. However formal letters of demand from a Solicitor will sort out the ‘can’t pays’ from the ‘won’t pays!’ Solicitors can issue proceedings to recover unpaid invoices, fixed costs and interest. Interest may be recovered at either the Court rate (currently 8%) from due date of payment, at your contractual rate in accordance with your terms and conditions or under the Late Payment of Commercial Debts (Interest) 1998. It is also possible to recover compensation under the Late Payment legislation. If your unpaid invoice is for more than £5,000 interest will continue to accrue post Judgment.

If no response is received to the proceedings then Judgment will be obtained. A County Court Judgment is a Court Order for a fixed amount. The details of the Judgment are entered on to The Register of Judgments, Order and Fines. This information is then passed onto credit reference agencies, which will make it difficult for the debtor to gain credit in the future.

Once obtained it is possible to issue one of the following enforcement proceedings:

Warrants – execution against goods – County Court bailiffs or the High Court Enforcement Officers (HCEO’s)

Charging order – placing a charge over the debtor’s home or business address

Third Party Debt Order (formerly known as a garnishee order) – obtaining monies owed to your debtor from a third party

Order to Obtain Information – obtaining your debtor’s financial details under oath

Attachment of earnings – debtor’s employer pays regular instalments to you via the Court

An experienced solicitor will advise you on the most appropriate and cost-effective method of enforcement.

This article is for general information purposes only and does not constitute legal or other professional advice. You should not act or rely upon this information.

Sarah Lock

Debt Recovery

Ashton Graham Solicitors

Tel: 01284 762331

Email: sarah.lock@ashtongraham.co.uk

www.ashtongraham.co.uk

Ashton Graham is authorised and regulated by the Financial Services Authority

Ashton Graham Solicitors is regulated by the Solicitors Regulation Authority No. 50075