Debt Collection and Contractual Disputes
We cover Debt Collection and Contractual Disputes for businesses and consumers; these are in many instances two sides of the same coin.
Our firm, like debt collection agencies, can bring claims to the recovery of debts. The difference between this firm and a debt collection agency is that we can also pursue defended claims which debt collection agencies cannot.
Indeed, in the past, we had an arrangement with a debt collection agency that they would pass to us any of their claims which become defended.
Where the claim is undisputed, usually the most challenging issue is the enforcement of the judgement.
There are many methods of enforcement available. We advise our clients as to which of these methods should be used. This would usually be in conjunction with an application for the oral examination of the judgment debtor at Court to provide full information as to their assets and liabilities.
Debt collection via the Insolvency route
This can be a very effective procedure if the debt is not disputed, particularly if the debtor is carrying on business. If the debtor is a limited company, then seven days after service of the winding-up petition it can be advertised in the London Gazette. This will result in the company’s bank accounts being frozen. Therefore, the debtor will have the option of (probably) going out of business or coming to an agreement with the creditor.
The insolvency procedure is only appropriate for non-disputed claims. It can be a financial disaster if the claim is disputed on reasonable grounds and an injunction application is issued by the debtor to restrain a winding-up petition and/or to restrain advertisement.
How do you ascertain if a claim is not disputed?
We normally discover this by serving a usual pre-action protocol letter of claim. If no response is received, this is a reasonable indication that the debt will be undisputed. If a response is received, then this needs to be examined to consider how next to proceed. One possibility is to issue court proceedings in the normal way and apply for summary judgment, if there is a view that there in no real defence to the claim. Summary judgment is an application for judgment upon the basis that there is no arguable defence to the claim.
The insolvency process is commenced by the service of a 21-day statutory demand (in a prescribed format) upon the debtor. The debtor has 18 days to challenge the statutory demand subject to a time extension being granted by the Court. For an individual debtor, the statutory demand may be challenged by way of an application to the Court to set aside the statutory demand. For a company debtor, the statutory demand is challenged through an (expensive) injunction application to the court.
This is the other side of the coin. We will raise claims on behalf of clients who have suffered financial loss due to a breach of contract by a supplier providing goods or services.
We are very experienced in dealing with this type of claims.
We also represent suppliers who are subject to and who are defending such claims by their clients and customers.
Contacting this firm
Please contact Simon Aaron on 0208 4466 223 or email email@example.com for enquiries related to Debt Collection and Contractual Disputes.
Contact Simons Rodkin Solicitors LLP
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