Frequentely Asked Questions
Is it always worth pursuing overdue debts?
Yes however you want to be sure that you have a reasonable chance of recovering the debt, and that it will justify the expense and effort of pursuing it.
Can I charge interest on overdue debts?
Yes your contract may specify a credit period and how interest will be charged on overdue payments. In addition, commercial debts are covered by the Late Payment of Commercial Debts (Interest) Act 1998.
What do I do if my debtor has absconded?
Most debtors can be traced using a trace or debt recovery company for a nominal fee.
What evidence of the debt do I need to have?
Ideally you will have a written and signed contract. But you may have other documentary evidence - for example, a purchase order or an invoice.
How should I prepare for a court case?
Get as much written evidence as possible, including evidence that you have tried to resolve the dispute.
Does winning a court case guarantee payment?
No. When you win the court case (either because it is undefended or because a dispute has been resolved in your favour) you are awarded ‘Judgment’. However there are further steps you can take once you have Judgment (ie) High Court Enforcement, Attachment to Earnings, Charging Order or Winding Up Petition.