Debt Recovery Solicitors, Liverpool
Our expert debt recovery solicitors specialise in helping both businesses and individuals recover outstanding debts efficiently. We understand the impact of unpaid debts on your cash flow and financial well-being, which is why we are committed to providing swift, reliable legal support to help you reclaim what you are owed.
We manage the entire debt recovery process from start to finish, offering personalised advice to ensure compliance with current laws and regulations. Our services range from sending formal demand letters and negotiating settlements to initiating court proceedings when necessary.
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.
The Debt Recovery Process
Debt collection begins with a series of pre-action steps designed to resolve the issue without progressing to litigation. Early intervention may involve informal reminders, which can often encourage payment. However, if these efforts fail, a formal Letter Before Action (LBA) will be sent.
This letter of claim serves as a final demand and outlines the total debt, previous attempts to recover it, and the date by which the debt must be paid. If the debtor does not respond, further action may be taken.
For particularly serious cases, a Statutory Demand may be issued, requiring the debtor to pay within 21 days. This process is more formal and is often used when bankruptcy or winding-up proceedings are being considered.
For business debts, creditors may also have the right to claim interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998.
If pre-action attempts do not succeed, we can guide you through the court process. Claims can be filed in either the County Court (for smaller debts) or the High Court (for larger debts). Once a claim is issued, the debtor has 14 days to file an Acknowledgment of Service (AOS), indicating whether they plan to defend the case. If the case goes in your favour, a County Court Judgment (CCJ) will be issued, ordering the debtor to pay.
Enforcement options following a CCJ include instructing bailiffs, applying for an Attachment of Earnings Order, or pursuing insolvency proceedings like bankruptcy or company liquidation.
Alternative Dispute Resolution (ADR) is also a viable option and can help resolve the debt quickly and without the need for court intervention. For example, mediation and settlement meetings can be pursued to avoid litigation and minimise costs such as court fees.
Alternative Dispute Resolution (ADR)
If formal letters and court action don’t lead to a resolution, it may be worth considering Alternative Dispute Resolution (ADR) before moving forward with more expensive and time-consuming legal proceedings. ADR methods, like mediation, can help both parties find common ground and settle the issue without the need for court involvement.
Mediation involves a neutral third party who helps guide discussions and negotiations between the creditor and the debtor. This process is often quicker, cheaper, and less confrontational than going to court, which can also help preserve business relationships. While ADR might not always be the right option for every case, it can be a great way to resolve disputes efficiently without adding unnecessary pressure or cost.
If you are unsure whether ADR is the right option for your situation, our debt recovery solicitors, Liverpool can provide advice and help you explore the best course of action for you and your business.
How AFG Law can help
At AFG Law, our specialist debt recovery solicitors, Liverpool provide a comprehensive service to businesses and individuals seeking to recover debts. We use our in-depth knowledge of commercial law and debt recovery procedures to deliver tailored, cost-effective solutions.
Although our offices are based in Manchester, Bolton and Stockport, we offer a nationwide service assisting clients in Liverpool and throughout England and Wales.
Whether you are dealing with a single overdue invoice or more complex debt recovery, we have the skills to support you every step of the way. Our team works closely with clients to ensure that the most efficient course of legal action is pursued.
For further information on our debt recovery service or to discuss your case, please contact our law firm today by calling 01204 920101 or emailing disputeresolution@afglaw.co.uk. We are happy to offer initial advice and help you understand the debt recovery process.
For more information on our debt recovery service, please go to our main debt recovery page here.
