Recovering Debt from Ltd Company

AWOL_2

Hi

I am after some advice on the best process to try and recover a large debt from a Limited company £15000 + Vat. We don’t think the company will go into insolvency as a result but these days you can never tell.
The aim is to recover the debt as quickly as possible, I have tried making contact with the other party but they just fob me off with one excuse after another.

Solicitors - what powers have they got and how long do they take
Debt Collectors -what powers do they have and how long do they take

Anyone have any experience of this. The recovery of this payment possibly impacts the ability of my employer to keep on trading and therefore I am just trying to help him out as much as possible with this bad debtor.

We don’t want a long drawn out process just a quick resolution

Any suggestions gratefully received.

hippyadam

I sympathise, there seems to be a lot of companies these days who are trying to squeeze free credit out of their suppliers these days...

As for your question, in this case i would probably recommend using a recovery agency before going to the solicitors. As most companies will advise you to add late payment & interests costs to the original debt, this coupled with the threat off further action by the agency sometimes is enough to get a response (if not immediate payment).

I wouldn't go straight for the solicitor as in my experience legal action is an absolute last resort & it can be both expensive & time consuming, especially if the debtor defends a claim.

Do bear in mind some golden rules for dealing with collection agencies:

1. PAY NOTHING UPFRONT!
(No reputable agency will request money up front, nor will a legitimate company ask you to sign up for their service for a year/month etc)
2. Shop around for the best price
(Depending on the age/amount etc will affect the price)
3. Don't be tempted to sell your debt for a percentage
(The money is yours, why give it away?)

Hope that helps, & if you want a personal recommendation message me & i'll give you the details of who we use.

AWOL_2

hippyadam wrote: »

I sympathise, there seems to be a lot of companies these days who are trying to squeeze free credit out of their suppliers these days...

As for your question, in this case i would probably recommend using a recovery agency before going to the solicitors. As most companies will advise you to add late payment & interests costs to the original debt, this coupled with the threat off further action by the agency sometimes is enough to get a response (if not immediate payment).

I wouldn't go straight for the solicitor as in my experience legal action is an absolute last resort & it can be both expensive & time consuming, especially if the debtor defends a claim.

Do bear in mind some golden rules for dealing with collection agencies:

1. PAY NOTHING UPFRONT!
(No reputable agency will request money up front, nor will a legitimate company ask you to sign up for their service for a year/month etc)
2. Shop around for the best price
(Depending on the age/amount etc will affect the price)
3. Don't be tempted to sell your debt for a percentage
(The money is yours, why give it away?)

Hope that helps, & if you want a personal recommendation message me & i'll give you the details of who we use.

A personal recommendation is always good. Please feel free to send it as a private message

Thanks for your tips

hummy

Hello. Although my suggestions might come a little late i think you have one other option.
Depending on the agreement you have in place it may be possible for you to apply for an injunction order at the court to stop the company from trading till your debt has been paid.
I have done this in the past with an individual by preventing him from opening a business whilst still owing money to me. Send me a PM and i can give you details of a company i used to get the injunction for £150, although if you fancy yourself as a bit of a solicitor you could do it yourself for about £50.

Trust me that will work....and usually results in a rather large payment and an agreement at the very least for the other remaining amounts.

Look forward to hearing from you.

AWOL_2

Thanks - I have sent you a PM