Legal Services

In the small number of cases where a LBA and follow-up telephone call to the Debtor does not produce recovery of the debt, the issue of Legal Recovery Proceedings in Court, very often will force your Debtor to pay. The consequences of a Debtor ignoring a claim served upon them will be the grant by the Court of a Judgment against them for the debt, interest, and Late Payment Compensation where appropriate, together with fixed legal costs incurred as a result of the claim being issued.

Judgment

Once a Judgment has been obtained, unless it is paid within 28 days, it will remain registered against your Debtor for a period of 6 years. This may very seriously affect their credit rating and ability to obtain credit in the future. More importantly, a Judgment will entitle you to take Enforcement Action against your Debtor, by one or more means including:-

• Seizure of moveable goods via a Court Bailiff or Sheriff’s Officer under a Warrant or Writ of Execution.
• Obtaining an Order requiring your Debtor to attend Court to supply information in respect of its financial position. Apart from such information being useful, it can lead to a Debtor making instalment payment arrangements acceptable to you.
• Third Party Debt Order. If a third party owes money to your Debtor, it is possible to obtain an Order against the third party, requiring the third party to make payment to you, instead of the Debtor.
• Charging Order. If your Debtor owns property, it is possible to obtain a Charge over that property to secure payment of the Judgment Debt.
• Attachment of Earnings Order. If your Debtor is employed as opposed to self-employed, it is possible to obtain a Court Order requiring your Debtor’s employer to make deductions from your Debtor’s wages, until the Judgment you have obtained is paid in full.