Court proceedings are a common method for recovering debts, categorized into small claims for amounts up to £3,000, summary cause actions for debts between £3,000 and £5,000, and ordinary actions for debts exceeding £5,000. However, there are alternative strategies that may prove more effective in certain situations. For instance, issuing a Statutory Demand or a simplified Demand can serve as a powerful tool against a limited company debtor, threatening immediate liquidation if a debt of £750 or more remains unpaid. This approach elevates your debt to a priority status for payment.
If court action becomes necessary, consider implementing additional protective measures, such as obtaining the court’s permission to initiate an arrestment to block payments to your debtor from third parties, or an inhibition to stop your debtor from selling any heritable property, all before serving court documents. These legal actions provide you with security for the amounts owed to you.
At Stephen Hodgson & Co. Solicitors, we specialize in managing your debt collection needs, allowing you to focus on running your business and maintaining a steady cash flow.
In our experience, when a customer neglects to pay an invoice, it often indicates they have other outstanding debts as well. Our goal is to position your debt as the top priority for payment in the customer’s eyes. Therefore, our collection strategies will be specifically designed to achieve this outcome.
Once a court judgment is secured and enforcement is necessary, we will assist you in exploring the available options—such as arrestment, attachment, and insolvency proceedings—and the associated costs. Choosing the right enforcement strategy is crucial for maximizing your chances of receiving payment.