UK Debt Recovery
The 4 Stages of UK Debt Recovery
Lovetts Solicitors provides a dedicated fixed fee service across all four main stages of the UK debt recovery process, including Letter Before Action (LBA), Issuing Court Claims, obtaining a County Court Judgment (CCJ), Enforcement of a CCJ, and additionally if necessary Insolvency Proceedings.
Our research shows that on average, 86% of cases result in payment at the letter before action stage, with no further action being required. You can learn more about the subsequent steps in the process that follow the sending of a Letter Before Action below.
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of cases result in payment at the letter before action stage
The Stages of Debt Recovery
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1
Letter Before Action
Before issuing any legal proceedings a letter before action (LBA) should be sent to a debtor. An LBA can be sent for as little as £1.50 plus VAT and on average, 86% of cases result in payment at this stage. Read more
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2
Legal Claim
We can issue claims electronically through the Civil National Business Centre (CNBC) which guarantees claims are issued within 48 hours of being sent to CNBC. At Lovetts we don’t just blindly process claims in an automated fashion. Every claim is checked by a senior member of our Legal Department before being sent to the Court, to ensure you are suing the right person in the right way and that we are giving you the very best service possible. Read more
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3
County Court Judgment (CCJ)
A County Court Judgment (CCJ) is a Court Order that confirms that the debtor has defaulted on payment. The CCJ is the final decision by the Court which gives you the power to take enforcement action in order to collect the debt. The CCJ is also recorded against the debtor’s credit record affecting their ability to obtain credit. We also enter most of our judgments through the CNBC. Applying for judgment through CNBC allows you to obtain judgment and take enforcement action a lot quicker. Once Judgment has been entered, we can enforce your CCJ in various ways. Read more
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4
Enforcement
Once a County Court Judgment has been obtained, it is then possible to ‘enforce’ that debt immediately. At Lovetts our paralegals will always advise on the most appropriate method of enforcement based on their experience and expertise with similar cases. Read more
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Insolvency
Across all stages of debt recovery, insolvency proceedings may be required. If a debtor does not make payment on demand and the debt is not disputed, they are technically deemed insolvent.
If you are concerned that your debtor may have other creditors chasing payment from them, commencing Winding Up Proceedings against a company or Bankruptcy Proceedings against an individual means you could jump straight to the front of the queue for payment.
Instead of the usual process of issuing a County Court Claim, you can commence insolvency action by initially sending a Draft Winding Up Petition to a company or a Statutory Demand to an individual. On average 81% of cases are paid at this stage without further insolvency proceedings being issued. Read more
What is the typical process behind legal debt collection?
This short video gives an overview of the different stages your cases will pass through when you decide to take legal debt recovery action.
