Debt Collection - The other side of the coin

Quintain_2

Hi Folks, my first post, although like many others I’ve been lurking awhile.

My sister’s job ended in January 2004. A new owner closed the business and ducked out of his responsibility to pay her redundancy of just under £5000. (She had been there 30 years but on a part time basis). All other employees, fewer than 10, received their monies. On 26th January 2005 an industrial tribunal awarded my sister some £11,000, excluding her legal costs – which to date are £4100 – and which are to be the subject of a further tribunal.

I’ll post fuller details later if I may, but without question she was due the redundancy, and the guy has refused all communication with the tribunal since May of last year – the main reason that the award has taken so long.

Following her prompt to her solicitor last week Sis has today received a letter from her solicitor asking for instructions as to how she wants to pursue collection this first chunk of money. (Sis had thought this well in hand) …....

Sis has read out the letter to me over the phone, and the choices put before her for collecting the debt seem to me to be very much those for chasing an award from the small claims court, and include petitioning for the debtor’s bankruptcy.

She has a meeting with her solicitor tomorrow and has asked if I will accompany her, as she is now most upset and frustrated that the whole process, and expense, must start again.

I ask if anyone has experience of this side of debt collection …. and especially of getting money from someone who has openly boasted his vowed intent of making the process as long-winded and expensive as he possibly can.

What’s the most effective way to proceed?

nedden

my personal experience in the world of debt collection, involved pursueing someone via the small claims court and winning my case, the defendant refused to pay but made the court an offer of payment of £20 per month (total owed around £400) this is what she claimed she could afford.

After not paying a penny, eventually the bailiffs went round to collect and she had moved out! so now with no address and no details of her current employer I cannot pursue the matter any futher , so i'm a bit stuck with my particular situation, but just to say this is a very shortened version of events that have taken around 18months.

However, it appears to me, that if your sister has won her case she will then instruct the court (via her solicitor) to send the bailiffs in (if payment not made) .....(the small claims court will accept offer of payment from defendant, i dunno about larger amounts owed) but it is in the defendants interest to pay as the bailiff adds their collection fees to the amount owed. If she's using a solicitor they should be guideing her as to the best options open to her as afterall she is paying them to do this!

Hope that's helped! if anyone knows what else I can do to trace the so and so that owes me my money please let me know!!!!!

Malestrom

I was under the impression that the Small Claims Court would only deal with cases of £5000 or less. I'm sure that was in the literature I was given when pursuing a case a few years ago.

J_P_S

the small claims court used to be up to £1000 but now i believe it is £5000.

if he really wants to he can claim poverty and offer a small payment.

could it be a criminal offence not to pay? ihave no idea but maybe worth finding out.

ultimately though there isnt a huge amount you can do if he is really set on evading payment.

chillitotes_2

I am a credit controller and if I remember correctly large amounts such as the amount your sister has been awarded can be collected through a sheriff. These are, if you like, a self employed baliff. Baliffs are civil servants and as such are paid a salary and as such there is no benefit to them in how much they recover. A sheriff on the other hand makes a commission on what he collects so he would be more likely to collect the sum owed. I think his fees are added to the debt and that is colleced from defendant. The other alternative is to apply for a garnishee order. A garnishee entitles the courts to take the money directly from the defendants bank account or it might be their salary, I can't remember off hand. There is a get of jail card for this for the defendant but I would rather not post it so as not to help those people that are not as honest as most of us (I will e-mail you though if you need to know).

To declare the person bancrupt can cost in excess of £1000.

I used Sheriffs in my job in the past and they have been very successful in collecting bad debts.

Hope this helps

Quintain_2

Thanks for the comments so far. My Sis's solicitor has ducked meetings both yesterday and today .... doublebooked! ......and to save her yet more fees has offered to speak to her (us) over the phone - apparently he need not book this to her account. Think he feels a little guilty that it is now 9 weeks since the award and little action seems to have taken place. The guilty party in this instance is a 'one man & secretary' limited company, so am unsure if trying to attach a payment order to his wages will be of benefit. Don't know if the company has any assets either.

Am seeing Sis over weekend to look at her paperwork with her. To date I've not actually seen any details. I only know the little I've been told.

One thing I do know is that the guy (company) that owes the money has ignored every communication from the tribunal since May 2004.

What would Al Capone have done?

chillitotes_2

Your options are slightly more different if its a Limited Company. You might want to buy a finacial report on the company and see how they are performing. You can also check to see if they have any winding up petitions on Companies House website http://wck2.companieshouse.gov.uk/f9e6306f9b9ffa8b7e5ea162a086ee2f//wcframe?name=accessCompanyInfo

I would still consider instructing a sheriff to recover the debt.

burbs_2

jumping the gun slightly but if it does get to the stage where the bailiffs are bought in then the court will use their own bailiffs to recover the debt for you. they are paid an hourly rate for their job and they do the job as they see fit. if they cannot find the person then that is unfortunate but thats the way it is.

you are quite within your rights to ask that you employ a private bailiff company to recover the debt for you. they work on commision basis, if they dont recover your money then they dont get paid. trust me they will get your money quicker than you could imagine.

nedden

where do you look to get hold of a private bailiff/debt collector

My debtor has moved out of her last known address and with no forwarding address the court bailiff will not take further action.

The last known address for the debtor is in another county to where I am living, so i would not know where to look, also, as they are on commission will they take on a case where there is no known address and search for her?

burbs_2

type private bailiff into google or the like with your area and you will find a huge list. look in your yellow pages etc, the usual places. They will take on any debt and i will guarantee you that as long as you have a name and previous address they will recover your debt for you. Obviously they will take a fee but they will get you your cash as well.

There are hundreds operating, look for one in your area and give them a ring, explain the situation and they will let you know what they can do. They travel nationwide without a second thought so thats no big deal for them either.

Depending on your area i could put you in touch with a company, i run a door security firm and have a company who i have used in the past. PM me if you need too, but google and yell should be able to get you started.