Debt Recovery Solicitors, Bolton
Debt recovery solicitors, Bolton, are legal professionals who specialise in assisting creditors in recovering unpaid debts from debtors.
Our debt recovery specialists are dedicated to helping creditors recover outstanding debts. We use our expertise in debt collection laws and regulations to effectively manage the entire process, including debtor negotiations, formal notices, and legal enforcement action when needed.
Our commercial debt solicitors, Bolton at AFG Law, can assist businesses in the recovery and enforcement of debts owed to them. As a law firm, we can ensure that in the event a debtor fails to pay, aside from making requests for payment, legal enforcement processes are applied through the Courts to ensure no further delay is encountered in recovering your outstanding charges.
If you would like more information on the debt recovery process or how our team can help, then please do not hesitate to get in touch today using the contact details at the bottom of this page.
What is the Debt Recovery Process?
The debt recovery process follows a structured approach, starting with pre-action steps and, if necessary, escalating to legal proceedings and enforcement. However, alternative dispute resolution (ADR) methods, such as mediation, can also be explored to achieve a cost-effective resolution.
Pre-Action Protocol: Encouraging Payment
Before pursuing legal action, creditors should attempt to recover the debt through informal means, such as reminder emails or phone calls. If the debtor remains unresponsive, a Letter Before Action (LBA) can be issued. This notice informs the debtor:
- The total amount owed and a breakdown of the debt.
- Previous payment requests were made.
- A final time scale for settlement.
- Notice of legal proceedings if payment is not received.
An LBA is often effective in prompting payment, as ignoring it could lead to court action and additional costs. In some cases, creditors may issue a statutory demand, which requires payment within 21 days. This is a serious step, typically used when the creditor intends to escalate the matter to winding-up (for companies) or bankruptcy (for individuals).
It is also worth noting that if a business-to-business transaction is taking place and there is debt owed, the creditor can claim interest and compensation on any unpaid invoices as stated in the Late Payment of Commercial Debts (Interest) Act 1998.
Alternative Dispute Resolution: Mediation and Settlement Meetings
Litigation is not always the best solution, especially for lower-value disputes. Alternative Dispute Resolution (ADR) can offer a quicker and more cost-effective way to settle debts. Mediation involves an independent third party helping both sides reach a mutually acceptable agreement, avoiding court costs and delays.
Another option is a round-table or joint settlement meeting, where parties negotiate directly to resolve the dispute without a mediator. Courts encourage ADR, and attempting it can demonstrate reasonableness in case legal action becomes necessary.
Court and Enforcement Proceedings
If pre-action steps and ADR do not lead to payment, creditors may initiate County Court or High Court proceedings, depending on the debt amount. A successful claim can result in a County Court Judgment (CCJ), legally requiring the debtor to pay. If they still fail to settle, creditors can enforce the judgment through:
- Bailiffs to seize and sell assets.
- Attachment of earnings orders to deduct payments from wages.
- Charging orders to secure the debt against property.
Considering both legal and alternative options ensures creditors take the most effective approach to debt recovery while remaining compliant with legal protocols.
The Role of a Debt Recovery Solicitor
Our debt recovery solicitors, Bolton, help facilitate the recovery of debts owed to a company. Our experience in this area of the law allows us to effectively and successfully work with our clients to obtain their desired outcomes.
We provide an all-encompassing service, offering expert legal advice, assessing the strength of a claim, and guiding creditors through the often complex recovery process.
Where possible, our solicitors oversee negotiation talks on behalf of creditors to attempt to reach appropriate settlements of repayment plans. If negotiations are not appropriate or fail, we can represent our clients in taking more formal legal action to enforce judgements issued by the court. Enforcement options can include commencing insolvency proceedings (such as petitioning for bankruptcy or the winding up of a company), seizing assets or applying for charging orders against property.
How AFG Law can assist
Our debt recovery solicitors in Bolton have the experience and expertise in commercial debt recovery to assist creditors in dealing with debtors.
Our debt recovery service is backed by experienced commercial litigation specialists who expertly handle disputed and complex claims with professionalism and efficiency. We work closely with you to achieve a resolution and provide comprehensive advice on all aspects of debt recovery.
To discuss any business debt recovery matter or for more information on fixed fees, please get in touch with a member of our team on 01204920101. Alternatively, you can send an email with your name, contact information, and brief details about the nature of your issue to disputeresolution@afglaw.co.uk and one of our team members will be able to help you.
For more information on our debt recovery service, please go to our main debt recovery page here.
