Unfortunately, most businesses will likely need to take action to recover debt at some stage of their business journey. Court action should always be the very last option after attempting to recover the debt in other ways. This article will explore how a business can start an action for debt and the key stages to understand.<\/p>\n\n\n\n
There are various ways you can attempt to recover debt before going to court. For example:<\/p>\n\n\n\n
You should keep a record of all attempts you make to recover the debt informally, as it could serve as good evidence in your favour later in court proceedings.<\/p>\n<\/div>\n\n\n\n
If all else fails, you can pursue a court action to recover the debt. <\/p>\n\n\n\n
You will first need to comply with pre-action protocol rules. You must follow these rules before your claim can go to court. The first step is sending the debtor (the party owing you money) a \u2018Letter Before Action\u2019 setting out how much debt they owe you and how you have calculated the sums due. The debt claim may include interest that has accrued for late payment. You should typically give the debtor 14 days to pay off the debt or provide a response to your letter. <\/p>\n\n\n\n
As a practical tip, a Letter Before Action can be highly effective at getting a debt paid off. Particularly, a letter sent by a law firm may alarm the debtor and get them to pay the sums owed rather than risk legal action. <\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n