Forbes Collect is our unique commercial debt recovery process, supporting your business in the collection of unpaid invoices.
BUSINESS OBJECTIVES ACHIEVED
Unpaid debts can cause huge problems for businesses. At the very least, chasing late payments can be frustrating and time consuming, but a good cash flow system is also an essential factor to ensure success. When you business' cash flow is affected by unpaid debts it can potentially prevent work from being carried out, or staff being from paid, which may harm your reputation in the long run.
Forbes Collect is a unique commercial debt recovery process to aid you in the collection of your unpaid invoices. If payments are not being received on time, our expert debt collection team will assist you to recover any outstanding invoices in the most efficient and cost-effective way.
A debt collection agency is a company that pursues unpaid invoices or outstanding debts on behalf of the creditor. Whilst not being a debt collection agency, Forbes Collect is a unique, solicitor-led service that will aid you in the collection of your unpaid invoices.
Debt recovery agencies will put a large amount of pressure on the Debtor's that may sometimes damage commercial relationships. These agencies are also not able to issue County Court proceedings, should you need to do so.
While every debt collection agency in the UK is subject to the same legislation and regulations, each one will have their own set of procedures that they will follow, within that framework. Forbes Collect is a solicitor led debt collection service, so are well placed to take legal action against a debtor, if needs be.
Our Forbes Collect team are experts in debt collection and as we are solicitors this brings the following added benefits:
Forbes Collect has a service that is designed to guide you throughout the whole process, from the initial letter stage to enforcement stages. We are able to give you the correct advice and as it is a 'no recovery, no fee' service, we only get paid when you do!
In England, in accordance with the Limitation Act 1980 you have six years to pursue an unpaid debt. This time period runs from the date payment comes due.
After this timeframe has elapsed the debt becomes Statute Barred. This means that if you pursue the debt and issue a County Court Claim after the six years have expired the debtor has a complete Defence to the claim. This means that the debtor could use the expiry of the limitation period as a reason for not paying the debt. The burden would then be on you to prove that the time frame hasn't expired.
However, if you have been in contact with the debtor but believe the time frame to have lapsed it is always worth checking with our Forbes Collect team. The debtor may well have acknowledged the debt and so you may be entitled to pursue the unpaid invoices in any event.
Once you have issued a County Court Claim and have been successful in gaining a County Court Judgment (CCJ) against the debtor; it means you the court has ordered the Debtor to pay a sum of money over to you. This will be the amount of the claim plus interest from the Date of Issue of the Claim to the Date of the Judgment. The order will either provide for payment forthwith, which means immediately or will provide a deadline for payment.
The CCJ will be registered on the Register of Judgments and unless the Judgment is paid in full within 30 days of the deadline it will have a detrimental impact on the debtor's credit rating. This will affect their ability to get credit. If the debt is paid after the 30 day deadline, the Judgment will not be removed from the Register it will only be marked as satisfied.
However, a Judgment does not in itself guarantee payment of the debt. Our Forbes Collect team may have to take further enforcement action should the debtor not be forthcoming with payment. It is this enforcement action, which is the additional step leading to payment.
If you are trying to collect a debt from someone and do not wish to issue County Court Proceedings one alternative way is to commence Insolvency Proceedings. The first step in Insolvency proceedings is to serve a statutory demand, which is a formal demand for the payment of a debt. This demand gives the debtor 21 days to make payment of the debt in full. The debtor is warned that failure to make payment will mean that a Bankruptcy or Winding-Up Petition will be presented.
If the debtor is an individual - the debt has to be over £5000 to take insolvency action. A Statutory Demand would be sent and then a Bankruptcy Petition presented.
If the debtor is a company - the debt has to be over £750 to take insolvency action. A Statutory Demand would be sent and then a Winding-up Petition presented.
This step should particularly be considered if the debtor is a company and you know that they are in a position to pay their debts.
If you are pursuing debt from a company in Scotland or Northern Ireland, this is considered out of jurisdiction and thus a different fee structure applies. Out of jurisdiction claims that are resolved during the pre-litigation phase will be charged on a 'No Recovery, No Fee basis'. However, if a County Court Claim needs to be made, taking enforcement will be charged according to our fixed fees, as the process is more complicated.
Video length: 1m 21s
Forbes Collect is a unique debt recovery process to aid you in the collection of your unpaid invoices. This video highlights the benefits of using Forbes Collect for your business.