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Intro

Being owed money may be extremely frustrating and painful, and the process of getting it back can be even worse!

There are numerous factors to consider before starting this path, so keep reading to learn more about our debt recovery guidance.

The starting point in a debt recovery procedure is contacting the person. Occasionally, a phone call isn’t as simple; in such instances, start by sending a letter.

How to Recover a Debt From an Individual UK?

Are you owed money by someone from the UK? Rectifying a debt owed to someone else isn’t an easy task however, with the proper methods, you will increase the chances of getting it done. In this piece we’ll guide you through steps that can be followed to successfully recover debts from someone within the UK. It is first important to be aware of your legal rights and choices. Learn about the pertinent law and regulations so that you can be sure that you’re pursuing legal debt recovery. Also, having a thorough awareness of your legal rights will allow you to bargain more successfully with the person who is in debt. Communication is the next important aspect. Start by calling the person who you are contacting and clearly describing the debt due. Keep a professional appearance and supply supporting evidence in support of the claim. If your initial efforts fail try writing a formal letter prior to taking action. This letter informs the person who owes you money of your intent to file a legal claim if the debt cannot be paid within the specified period. Also, seeking the assistance of a professional could be helpful. Legal and debt collection firms are experts in resolving debts and provide professional guidance during the whole procedure. If you follow these guidelines and using the correct sources, you’ll increase your chance of successfully regaining any debt owed to someone from the UK.

Where to start?

The first step of a debt recovery process is trying to contact the individual. Sometimes that isn’t as easy as a phone call, in that case, begin by sending a letter.

The letter should include |

  • Information on the debt in its entirety The sum owing and the explanation for their debt to you
  • Describe any additional strategies you’ve used to try and collect the loan.
  • When to expect the payment (make sure you are allowing at least 7 days)
  • The following actions you’ll take if the problem isn’t fixed

Make sure your letter is carefully written, clear, and succinct before sending it to collect a debt. In this way, your debtor will be aware of what is expected of them and the potential consequences of not complying.

Professional help

If you are unfamiliar with the law, dealing with debt recovery may feel intimidating and complex. When interacting with a stubborn debtor, you might think about seeking expert assistance.

It is important to remember that getting professional assistance is only advised when the debt is sizable enough. In addition to being expensive, taking enforcement action may harm your relationship with the debtor.

After taking into account everything said above, there are a few choices you might explore to help recover your debt.

Mediation

A legal case, especially one involving money, is likely to be the subject of passionate debate. By using a mediator, any issue will be assisted by a third party who is impartial.

Giving the situation a fresh perspective will allow for a fair assessment and lead to debt recovery. with someone available to offer legal counsel as needed.

Solicitors

Knowing your rights is crucial in any legal situation but doing so without a solid grasp of the rules can be challenging. Hiring a lawyer will ease your mind.

It is best to start working with a solicitor as soon as possible if you plan to do so. This will demonstrate to the debtor how committed you are to getting your money back.

The debt collection letter can be written by a lawyer, and they can also help with any legal procedures. This means you have legal representation from the start of the debt recovery procedure and someone familiar with your case if the debt collection proceeding to court.

Debt Recovery Agency

The use of a debt collection firm has various benefits. These services offer an efficient and certain method of recovering any debt. Depending on your situation, debt collection agents will know the appropriate legal course to follow. A debt collection service will be able to help you swiftly and effectively recover your bad debts because they have years of expertise and extensive understanding.

While it is typically improbable if legal action is initiated, using a friendly and professional collection agency may help you keep a positive relationship with the debtor. In order to ensure that both sides are handled properly during the repossession procedure, the majority of recovery organisations will move quickly.

Debt recovery agencies have the authority to hire attorneys on your behalf if attempts to collect the debt are made but the debtor persists in refusing to do so.

It’s vital to keep in mind that using this service might be expensive, so always examine whether your debt is sizable enough before using this service.

Court process

When all of these options have been exhausted and the debtor is still refusing to abide by your demands, it may be time to file a lawsuit.

If considering beginning the court process it is vital to consider a few things |

  • Your debt is significant enough to warrant the expense of a legal proceeding.
  • All disagreements relating to the debt collection are settled (without doing so chances of recovering any debt drop considerably)
  • The debtor has the financial means to pay off all obligations; bankruptcy is likely to discharge them.

Making a debt recovery claim can be done in a variety of ways. How you proceed is influenced by the debt’s size. The county court’s minor claims division can be used to file a claim if the debt is less than £10,000. Debts over £100,000 must be filed in the high court.

Once a court lawsuit is threatened, the majority of debtors will pay. But if you don’t, you’ll have no choice but to participate in the legal case.

Recovering money from a bankrupt individual

Even under normal circumstances, recovering debt can be difficult, let alone when bankruptcy is involved. Depending on the situation, you can ask for your money back from a person or business that owes you money but is unable to pay the loan.

If you are owed money, you are considered the debtor’s creditor. You will receive a report once you are acknowledged as a creditor, and if there are assets, you will be required to complete a proof of debt. All assets will be released after confirmation by an official receiver (OR) or an insolvency practitioner (IP). By doing this, money can be raised, which is subsequently distributed to creditors in order of priority.

You can learn more about the numerous legal criteria and other information you need to comprehend when you are owed money by a bankrupt person here.

Recovering money from an individual in another country

Debt recovery from a debtor who is in another nation will be difficult, but it is still doable.

Legally speaking, you cannot pursue your debtor for the money owed if they leave the country, but you can pursue whatever assets they may have left behind.

There are agreements between the UK and some nations, including Australia and Canada. These agreements give you the ability to sell your debtors’ arrears to a debt collection agency in the nation they are in, enabling you to later pursue them for their arrears.

However, you will need to file the complaint in a foreign court if you want to move further with retrieving your money. Knowing whether the debt is significant enough to pursue a foreign court lawsuit is essential before doing so because it will be expensive.

Summing-up

Independent debt recovery can be difficult and time-consuming. Here at Shergroup, we recognise how crucial it is to understand your legal options and how to successfully recover your money.

Speak with our business solutions advisors today and begin your debt recovery procedure right away.

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Last updated | 19 July 2023

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