Legal Debt Recovery: How It Works

If you think collecting unpaid debts is difficult – or if you think the only option is to hire a debt collection agency – then this article is certainly perfect for you. We pride ourselves on giving top notch debt recovery legal advice. Debt recovery doesn’t necessarily have to be difficult, especially in today’s modern world where legal options are widely available.

The process of legal debt recovery can be initiated by sending a Letter Before Action or a warning notice to your debtor. This warning notice is a must because if you go to court with the case you will be asked whether basic collection methods – including sending warning notices – have been used.

If the debtor decides not to respond to your notice, you can file a court claim right away. With the court announcing your claim, the debtor is forced to provide a proper response based on your claim. This means the debtor will acknowledge the debt, propose a rate of repayment, or lodge a counterclaim within 14 days from the announcement.

Depending on the response you get from the debtor, further legal actions can be taken to recover your money. The court can issue a decision along with the enforcement method used to get your money back, or you can even issue the debtor with a statutory demand and recover your money through bankruptcy.

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