Getting the money you are owed is never easy when you are running a business. That is because such activity can be time-consuming and stressful. However,with the assistance of a debt collection solicitor,you will have the ability to take legal action to recover your money. Even though the debt recovery process might take longer to finish than you would like,business debt collection agents offer you legal help until all the debts are paid.
The Debt Recovery System.
The first thing that debt collection solicitors do is to go through the whole process of recovering debts. This will help you understand how this legal process works and how long it might take to have your case solved in a court of law. Here are a few steps that debt collection solicitors take to help clients recover their debt.
1. Letter Before Action Letter.
The initial action that the debt collection agents take is to send a letter before action to the debtor. The letter normally states 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 states other costs that may be involved like interest rates and the costs of impending court.
Sending this letter is thought to be the first step. If the debtor does not respond 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 started when a debtor does not respond to the letter before action. At this point,the debtor is given more legal proof 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.
If the debtor does not respond to a court claim,then the debt collection solicitors will advise you on legal enforcement systems you can use recover your debt. Many of these systems include high court enforcement,seizing movable property,seizing home or office,inquiring about debtor’s financial status,and enforcing insolvency.
4. Pushing For Judgement.
Sometimes debtors may fail to pay off their debt even after legal action. When this happens the debt collection agents 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 30 days to clear his or her name from the public record. However,this has to be done within 30 days and the creditor must be willing to pay all the costs.
Business debt collection agents help creditors to recover their debt through legal action. It is,however,vital when looking for solicitors who are specialized in debt recovery,to ensure that they are licensed and offer quality services at a reasonable cost.
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