Hillingdon Solicitors

Debt Recovery FAQs – Hillingdon Solicitors

How can I go about recovering a debt ?

You have three main options: you can choose to try and recover the debt by yourself (which may be particularly appropriate for small debts) through a debt recovery agency or through a solicitor.  Debt recovery agencies generally work on the principle of “pile it high and sell it cheap”, so whilst being an affordable solution, agencies generally take a standardised approach which may not be successful in getting your money back or maintaining relationships with debtors.  Solicitors can tailor the approach you take according to the circumstances and your wishes.  A letter from a solicitor is also more likely to make the debtor sit up and take note when compared to a standardised letter, which may have threatening undertones.

What are statutory demands and are they useful?

Statutory demands are standardised documents requesting the debtor to pay the debt or respond to the creditor within 18 or 21 days respectively.  They can be useful as a tactical way of making the debtor take action and respond to you where it has been difficult to establish contact.  However, they should not be used lightly.  If you fail to follow up a statutory demand with court proceedings, then you risk making it even harder to get your money back.  If the debt is above £750, you should be prepared to follow up the demand with bankruptcy proceedings.

I am owed a debt less than £5,000 and I have heard I can claim it back through small claims. What are small claims courts like?

Small claims courts are a part of the county court system and are designed to be quick, efficient and accessible when compared to full court hearings.  You can use small claims if the debt is less than £5,000.  Whilst the procedures are less formal, you will of course be expected to make a formal application to the courts stating the particulars of your claim and be expected to exchange witness statements with the other side.  You will not be required to give evidence under oath and do not even have to have legal representation, although you are of course entitled to bring along a legal advisor if you wish.  Bear in mind that we are happy to advise at all stages of the process, right from application to hearing.

I am owed a debt greater than £5,000.  How do the county courts work?

The court courts are made up of three main streams or tracks including small claims (as we discussed before), fast track and multi track.  Fast track is used for debts larger than £5,000 yet no greater than £15,000, whilst multi track is used for debts larger than £15,000.  Fast track and multi track are more traditional courts when compared to small claims, so you can expect the process to be similar to a standard hearing.  You will, of course, be expected to make a formal application to the courts, exchange witness statements and give evidence under oath if the case goes to a full hearing.  Hillingdon solicitors will be more than happy to advise and assist you on all stages of court court debt recovery claims.

Visit the main debt recovery page here.