What Do Business Debt Collection Solicitors Do?
Recovering debts is never easy when you are operating a business. That is because it is 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. Even though the debt recovery process might take longer to complete than you would like,business debt collection solicitors offer you legal guidance until all the debts are paid.
The Debt Recovery System.
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 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 charges that may be incurred such as 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 the person that owes the money does not respond to the letter before action. At this stage,the debtor is given more legal documents that state how much he or she owes the creditor and is given approximately 14 days to meet the new terms set by the court claim. Furthermore,the debtor is also required to pay off the legal fees as well as the interest rates.
If the debtor fails to respond to the court claim,then the debt collection agency will advise you on legal enforcement methods you can use to get your money back. Many of these methods include high court enforcement,seizing property,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 30 days to clear their name from the public record. However,this has to be done within 30 days and the creditor must be willing to pay all the charges that are involved.
Business debt collection solicitors help creditors to get the money that are owed through legal action. It is,however,important when looking for solicitors who are specialized in debt recovery,to make sure that they are licensed and offer quality services at an affordable cost.
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