Keeping Creditors in the Loop

A new initiative being considered could see more information provided to creditors in relation to enforcement of their Judgments. As it stands only a limited amount of information regarding enforcement is supplied to creditors which leaves them in a position of not knowing about the progress or likelihood of a successful enforcement and recovery.

The High Court Enforcement Officers Association is considering implementing a system whereby creditors will be provided with clear information as to the outcome of enforcement action and whether the debtor has become involved in liquidation or insolvency as a result.

One further suggestion is that when debtors are provided with a copy of the Judgment obtained against them, they are also compelled to complete an Income and Expenditure Form giving details of their financial means. The thinking behind this is to enable creditors to work with debtors in order to facilitate the best means of recovery in light of the debtor’s financial means. In some cases the best recoveries arise from methods other than traditional enforcement and may take the form of a separate arrangement between the creditor and the debtor.

Whether this initiative comes to fruition only time will tell but it is encouraging that the enforcement procedure is being made more flexible and adaptive, which can only aid successful recoveries.

Forbes Solicitors has a specialist dedicated debt recovery team that can assist businesses big and small in recovering outstanding debts if you require assistance or further advice please do not hesitate to contact our Debt Recovery Department on 0800 321 3258.

This entry was posted in Debt Collection.