Recovering Debt
As a general rule we can recover debts on your behalf from any sole trader, partnership or company which trades in Scotland. The rules on jurisdiction are complicated but if the contract for the provision of goods and services was performeed in Scotland then you can sue in Scotland. Our debt recovery experts are based in Glasgow but our debt recovery services cover all of Scotland. If your debtor is based in England we can advise on recovery of English debts and instruct recovery in England on your behalf.
What types of debt can we recover
We are experienced in the recovery of debts arising from commercial contracts, building contracts, consumer contracts, and other miscellaneous agreements which result in a debt becoming due.
What can we recover
As well as the original debt due to you we can often recover a fixed administrative fee and statutory interest at 8% over base. If successful in your action we will also be able to request the court makes an award of expenses (costs) against the debtor. In other words our expertise may result in an increase on the sum you thought was recoverable.
What information do we need
Most debts arise from a contract where goods or services have been supplied but not paid for. Although many contracts are written, in Scotland this is unnecessary and often contracts arise informally. Most likely a failure to pay has arisen after an invoice has been ignored. In order to properly recover your debt we need to have sufficient information about the debt and the debtor including copy invoices requesting payment.
Often the invoice provides sufficient information to allow us to institute recovery. However if your case is defended we may need further information from you such as copy correspondence and e-mails.
How long will recovery take
Often debtors respond quickly to our demands for payment and a debt is settled by return or, with your agreement, in instalments. However if you raise an action, recovery will take longer. If a writ is served on the debtor but not defended by him then you will get decree in about one month. If the writ is defended then recovery may take a number of months.
How Much will it Cost
We are the only firm of solicitors in Scotland (as far as we are aware) who offer a fixed cost commercial debt recovery service. This service means that your solicitor fees are fixed and agreed before we commence recovery on your behalf.
If I win will I recover my court costs
The general rule is that if your case is successful the court will award you expenses. Court expenses are fixed by Parliament and are not generous. A rule of thumb is that an award of court expenses will result recovery of 50 - 60% of your actual court expenses.
What other remedies are available to me
If the debt is admitted it may be open to you to have the company declared insolvent or an individual made bankrupt. In both cases we can provide insolvency and bankruptcy services should this be a more appropriate method of recovering what is due.
For further information please call Colette Kerr on 0141 332 0913 or 07740 986 393