Unpaid Invoice - Business Debt Recovery
Business Debt Recovery
Unpaid Invoice – Business Debt Recovery
Every business, at some point encounters an unpaid invoice. The pressing issue is how it is dealt with and how frequently it occurs. Unpaid invoices can have an impact upon cash flow and in turn the health and stability of the business and so therefore it is imperative that the right course of action is taken in order to recover payment and depending upon the nature and frequency of the situation, consideration as to the ways in which to prevent future unpaid invoices.
How can 43Legal help?
At 43Legal we have various methods whereby we can actively assist in terms of the recoverability of debts. Whether that involves commencing debt recovery proceedings, through the County Court, or depending upon the number of unpaid invoices, or the frequency of it occurring, we can look to review your debt recovery processes and procedures to ensure that the business is best placed to recover its own debts and to ensure maximum recoverability. For example, reliance upon robust terms and conditions tailored to your business needs, or effective in-house credit control systems.
We have a wealth of experience, in terms of dealing with and advising you as regards our debt recovery services and Melissa Danks, a solicitor with over 20 years litigation experience oversees our debt recovery services, including our contentious and non-contentious services.
If necessary, we offer cost effective fixed fee structures for pursuing claims through the County Court. Alternatively, we can look to provide debt recovery services or assist in terms of implementing and/or overhauling your existing internal credit control and debt recovery systems and procedures.
Court Proceedings
If it is necessary to commence Court proceedings, depending upon whether a Defence is filed by your opponent the the potential time scales in resolved, in terms of pursuing a claim through the Court will vary. If the claim is undefended then you could obtain a judgement within potentially 8-10 weeks depending upon the Court.
If a Defence is filed and the claim is then contested, unless the parties are able to resolve the dispute by way of a settlement, then it could take between 6-12 months if not longer to obtain a judgement in the small claims court. If the debt is greater than £10,000 it could take anything between 12 months and 2 years to obtain a judgement, depending upon the complexity of the issues involved, the documentary evidence and whether there is a requirement for expert evidence.
We do offer fixed fees for claims that are below £10,000 and where possible, and it is you preference to do so, with claims of a higher value.
Recoverable Fixed Costs (RFC)
As of 1 October 2023 the Court Rules were changed so as to fix the amount of recoverable costs that a party to litigation is entitled to recover, in terms of claims that are valued up to £100,000. The amount of costs recoverable depends upon the complexity and value of the claim as well as the stage of the proceedings whereby the claim is either resolved or determined by the Court.