Fixed Fee Debt Recovery Lawyers Glasgow & Edinburgh
Do you have people who owe you or your business money? Cash flow is important for any business, no matter how big or small. We know that it can be expensive, time-consuming and extremely frustrating to keep chasing those who are in debt to you. Allowing your debtors to make late payments can result in significant consequences for you or your business. We are here to help you recover your debts in Glasgow and Edinburgh.
Fixed Fee Debt Recovery Lawyers, Glasgow Shawlands, Edinburgh, East Kilbride and Lanarkshire
Our experienced litigation solicitors specialise in recovering both commercial and individual/personal debts due to our clients throughout Scotland – quickly!
We act for all sizes of business in Scotland, most commonly pursuing invoice recoveries, building contracts, loans, consumer debts and complex contract disputes.
How Can We Help You Recover Debts?
Come in and speak to one of our Debt Recovery solicitors in Glasgow or Edinburgh – FIRST consultation free. We will clearly set out for you the prospects of recovery of your debt(s). We will advise you whether we think recovery seems likely, and of the most effective methods moving forward. Our services include sending a Demand Letter, which can often encourage the debtor to pay their debt immediately without having to raise court proceedings.
If, after exploring all your options, we identify that litigation is your best option, we can raise a court action in the Scottish Sheriff courts, or perhaps the Court of Session in Edinburgh may be the appropriate forum. Our experienced litigation solicitors in Scotland can raise your court proceedings on a fixed fee basis. We will seek immediate payment of your debt with interest and any expenses due. When larger debts are involved some additional measures may be taken, such as requesting that the court stop the debtors from selling property until your debt is repaid.
Our Scottish debt recovery solicitors are experienced in this specialist area and will strive to ensure that you recover the MAXIMUM amount owed to you under Scots Law.
Communicating with Your Debtor
When a debt falls due, it is important that you have tried to engage with your debtor to settle matters before taking legal action. In some cases, they may have forgotten to pay due to absentmindedness and a gentle reminder may be enough to resolve matters quickly. However, we appreciate that debtors may refuse to make payment or be unable to do so because of their lack of resources.
Our debt recovery lawyers can contact your debtor to make them fully aware of the consequences of their failure to pay. If you are considering taking legal action, it is essential that you provide fair warning of this and offer a reasonable period for the debt to be settled to avoid court proceedings. What will be considered a ‘reasonable period' will depend on the circumstances, but in many cases 7 days will be enough.
If your contract with the debtor allows it, or if the customer is a business to whom the late payment of commercial debts applies, interest can be applied to any outstanding debt owed. The level of interest to be applied is 8%, plus the standard base rate of interest for commercial transactions of 0.5%. The debtor should also be informed about any interest that will be due at this stage.
Taking Formal Legal Action
If an outstanding debt has not been paid and the debtor has been given notice about the consequences of their failure to pay, creditors can then raise formal legal proceedings. What happens next, and in what court the claim will be raised, will depend on the circumstances and nature of the debt.
Most debt recovery actions will be brought in the Sheriff Court. Complex or high-value claims will be heard in the Court of Session.
In cases where the debt owed is less than £5,000, Simple Procedure will be used, with these types of actions being raised in the Sheriff Court. Debts of more than £5000 will be raised as an ‘Ordinary Cause'. The cost and length of time required to recover the debt will depend on the procedure used, with Simple Procedure claims being more straightforward with lower court costs.
Debt Recovery Options
Scotland's insolvency regime can be used to recover debts against both individuals and businesses, however the rules are different for these classes of debtor.
If the debtor is a limited company and the debt is not disputed, a winding-up demand can be made which requires payment of the debt within 72 hours. Sheriff Officers will serve a demand drafted by one of our solicitors calling for the debt to be paid. If no payment is made, an application can be made to the court to place the company into liquidation.
For individuals, it may be possible to initiate bankruptcy proceedings to secure an outstanding debt.
There are also a variety of other options available to recover debts including:
• Arrestment – accessing funds in the debtor's bank account
• Earnings arrestment – deduction of money from the debtor's salary
• Inhibition – prevents the debtor from selling property
• Attachment – enforced sale of the debtor's property