Commercial legal debt recovery
The stages of legal debt collection
Before issuing a Legal Claim, a Letter Before Action (LBA) must be sent to the debtor. This is generally charged at £25 + VAT, which includes the preparation of case fee.
From experience, most cases result in payment at this stage.
If payment, or a satisfactory response, is not received following the LBA, the next stage is to issue legal proceedings through the County Court. This gives the debtor company 14 days to make payment (including costs & interest).
Where a debtor company doesn’t respond to the Legal Claim, or defaults on the agreed payment, a County Court Judgment (CCJ) can be obtained immediately after the expiration of the Claim. This gives you the power to take enforcement action to recover the debt.
When a CCJ has been obtained, it’s possible to take enforcement action on the debt immediately. The STA Legal team will advise on the best courses of action at this stage, based on prior experience and expertise.
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