Debt collection in the UK is the process that starts when a business/ natural person records one or more failed payments. Working with a debt collection agency in the UK is common and the first step is to commence the pre-legal phase. Our debt recovery agency in the UK will often use a strategic approach that aims to protect the business relationship between the debtor and the creditor while recovering the due amounts.
Our lawyer in England can help you if you are interested in collecting undue payments.
Table of Contents
Payments that are past due should be recovered as soon as possible after they are recognized. This allows investors who set up a company in the UK to mitigate the risk of insolvency.
In broad terms, debt collection in the UK has two stages: the pre-legal phase and the legal one. Our lawyer in London lists some of the common steps taken by creditors:
Working with a debt collection agency in London, and with a team of specialists such as our lawyers in London, is advisable when the debtor is bankrupt, and the process is subject to different steps.
If the debtor ignores the statutory court demand for payment, you have the option of applying for its bankruptcy or having its company liquidated. Our team can give you more information about this process and the risks involved (such as the case in which you may not receive your money if the company is liquidated).
You can only apply for a court liquidation of a legal entity as a solution for debt recovery if you (and other creditors) are owed over £750.
Handling a debt collection case is straightforward when choosing to work with a team of external specialists who can help you recover the undue payments.
Some of the solutions offered by our debt collection agency in the UK include:
Mediation is a solution that can be used during the pre-legal phase. Instead of taking the case to court, the option is to enlist the services of an independent mediator. However, if you decide to make a court claim, you could still be offered the option of free mediation (if the claim is for less than £10,000).
Our team can give you more information about these types of services if you are interested in debt management in the UK.
Debt collection with the help of a debt collection agency in the UK is also advisable when the debtor is a foreign company.
A video about debt collection is presented below by our team:
According to IBISWorld, a research provider offering insights into industries worldwide, the number of debt collection agencies in the United Kingdom has remained relatively steady over the last five years. Data summarized by our team shows that:
Our team can give you more details about debt recovery upon request. Feel free to reach out to our lawyers for more information on how you can find a suitable solution for your debts.