Many businesses struggle with keeping on top of cash flow and this can lead to unpaid debts. Pursuing unpaid debts can be very frustrating, time-consuming and often very expensive. If your business is suffering as a result of unpaid debts, it may be time to take action.
Debt recovery litigation doesn’t have to be difficult, and our team of specialist debt recovery litigation solicitors are here to help. We fully understand the impact late payment of debt can have on you or your business. We will seek to recover the maximum amount of debt owed to you under the law, as well as any interest or expenses that you may also be able to recover.
Contact us today to discuss your circumstances, and find out how debt recovery litigation could improve your financial future.
There are two main reasons why our clients choose to pursue litigation to recover unpaid debts. Firstly, after trying tirelessly to settle an unpaid dead, there comes a time when you must make the decision to begin litigation. Otherwise, you will go unpaid. It is an unfortunate fact that often there are no other means of getting your debtors to pay back the money owed to you.
The other case is where the debt is disputed by the debtor, in this circumstance, it is necessary to begin litigation to have the debtor recognize the debt, and pay the money owed to you. Our litigation solicitors in Scotland specialize in recovering commercial and personal debts. We act for all kinds of businesses and individuals all across Scotland, and cover most types of debt recovery including:
- Building contracts
- Invoice recovery
- Consumer debts
- Contract disputes
Our specialist debt recovery litigation solicitors can determine the prospect of success of recovering your debt from your debtors and advise you accordingly. Although in some cases sending a letter of demand indicating that litigation will take place if payment is not made is enough, in most situations we will litigate to recover your debt.
We will explain your options to you clearly and concisely to ensure you fully understand how your case will progress, and you are happy to proceed on this basis.
Our solicitors will raise an action on your behalf in the Scottish courts. Your action will normally be raised in the Sherriff court, however, in certain circumstances, the Court of Session may be appropriate. We will seek immediate payment of the debt and also any expenses which may be due to you. Some circumstances, especially those involving larger debts, interim measures may need to be taken. This may including asking the court to freeze the debtor’s bank account or asking the court to prevent the debtor selling their house or land until they have repaid the debt owed to you.
The type of court action raised will depend on your specific circumstances. The action required will depend on the sum due to you by the debtor. Where the debt is less than £3,000, small claims proceedings may be appropriate. However, if the debt owed is more than £3,000 but less than £5,000 a summary cause action should be raised. If the debt is for more than £5,000, an ordinary action should be raised.
There are specific court rules relevant to each type of action, but our specialist litigation team have excellent experience in dealing with each type of action mentioned above. Our specialist solicitors can provide advice and representation tailored to your specific circumstances and can help you recover the maximum debt owed to you.
The UK government has introduced legislation giving businesses a right to reclaim interest on late payment of a commercial debt. The amount of interest you will be paid on the debt owed to you is set at the ‘judicial interest rate, typically 8% above the base rate. Interest owed to you will run 30 days after the due date of payment. The due date for payment is determined by either the date goods or services were delivered to the debtor or the date on which notice (such as an invoice) was given to the purchaser, whichever is later. If a debt is owed to your business and the payment is late, our solicitors can help you recover the interest which may be due to you under the law. We understand how much difficulty late payments can cause, and we appreciate how much the recovery of debt means to your business. If you need to recover debts owed to you, contact our specialist solicitors today to find out how we can help.
After you have been successful in litigation, the Court will issue a decree. If necessary, we can advise on enforcing the decree and recovering payment of your debt. Enforcement can require several methods of what is known as ‘diligence’ – a legal term used in Scotland to describe methods used to enforce a court order. Diligence may include serving a charge for payment on the party you have been awarded a decree against. A charge for payment is a formal demand and will be served by Sherriff Officers for payment of the sum due to you. The charge for payment is a fourteen- day notice to the debtor to make payment. If the debtor fails to make payment to you, then our team can proceed with further action. Contact us today to discuss your case further, including any enforcement issues you may have the concern with.
Our litigation team helps resolve a broad range of disputes with skilful negotiation and straightforward, clear advice. Where court action is required, we are pro-active and determined in our approach to securing fast, effective solutions. We foster close working relationships and respond to our clients' individual needs, whether that is about a simple debt recovery matter or a technically complex and high-value dispute. Contact us on 0141 221 1919 or fill in our online contact form.
The Scottish Law Commission has launched a consultation on possible reforms to Section 53 of the Title Conditions (Scotland) Act 2003.