Debt Recovery Lawyers East Lothian
Chasing outstanding debt can be a time-consuming and costly process, and it can direct resources away from vital areas of your business. We understand how frustrating and worrying this can be for busy company owners. Our priority is to create a debt recovery strategy for you that achieves a successful outcome, quickly and cost-effectively.
If you have been unsuccessful in getting your debtors to pay, please get in touch with our team as soon as possible. The quicker you act, the lighter the financial impact will be for your business.
Our debt recovery services in East Lothian
We routinely advise corporate and institutional clients, as well as individuals, dealing with outstanding debt. Our experienced team will guide you through the legal processes necessary to secure recovery of your money and inform you of the practicalities and costs associated with the various stages. We will advise on the preliminaries, including the cost-effectiveness of the procedures, and in particular:
Communicating with the debtor
Before making a court claim to recover debt, you must have tried to settle the matter informally with your debtor. We will first write to them setting out the details of the outstanding payment, a reasonable period in which they have to pay and a warning that you intend to take legal action if the debt is not settled within the timeframe.
In our experience, often this is enough to compel the debtor to pay. In fact, sometimes their non-payment is unintentional. However, if they are unwilling to comply, you may wish to take court action.
Pursuing debtors through the courts
There are two ways to make a court claim for money:
- The Simple Procedure – for straightforward cases worth less than £5,000.
- The Ordinary Procedure – for all complicated cases and those worth over £5,000.
In either case, we will ensure the relevant forms are completed and submitted to the court. Depending on how the debtor responds to your claim, for example, if they wish to defend it in its entirety, you may need to attend a court hearing. If this situation arises, we will advise, represent and reassure you throughout.
How to use enforcement processes
If your debtor fails to observe an order you have obtained from the court, there are several enforcement measures you can take to seek repayment. These include:
- Inhibition – this prevents the debtor from selling certain property (for example, their home) before the debt is paid.
- Earnings arrestment – if your debtor is an individual, monthly instalments can be taken from their income, direct from their employer.
- Third-party arrestment – this remedy allows you to seize the debtor’s property held by a third-party, such as funds in a bank account.
- Attachment – here moveable property belonging to the debtor, other than items found in their home, can be removed and sold.
Our Debt Recovery lawyers will recommend which measures are likely to be the most successful in your circumstances.
Initiating insolvency proceedings against a debtor
This is usually the last resort when it comes to seeking repayment of outstanding debt. You must follow the court procedure to wind up a company; we will advise you throughout this process.