Business

Debt Enforcement

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Debt enforcement is an essential part of business for many companies, as non-payment by third parties that owe money can cause many problems for any business. However, even when you receive a County Court Judgment in your favour, actually recovering the monies owed is a different matter. Many businesses find the process of debt recovery very long, complex and stressful, which is where expert debt enforcement team, Forbes Collect, come in. We can handle all types of commercial debt recovery, for companies and organisations of any size, through the entire process from start to finish, so that you can focus your attention on your business whilst we look after getting you back the money that is owed to you.

Find out more about the debt enforcement process and our services below. The debt enforcement options available to you may depend on the value of the outstanding sum, the type of debt that it is, or the circumstances of the individual or business that owe the debt e.g. if they are no longer trading, some options may not be available.

What is debt enforcement?

Debt enforcement is the part of the debt recovery process that can occur once your business has been awarded a County Court Judgment (CCJ) against the individual or company that owes you money. The act of enforcing the judgment, which could potentially include seizing goods to sell if the other party refuses payment, is known as debt enforcement, meaning that this is the part of the process that directly results in your money, or part of monies owed, being recovered.

What is the debt collection enforcement process?

The exact process involved in your specific debt recovery enforcement action can vary, depending on which of the debt enforcement options that you proceed with. A specialist debt recovery team, such as the team at Forbes Collect, are ideally placed to advise you on the best enforcement route for your specific circumstances.

The various debt enforcement proceedings may include:

A Warrant of Execution

A debt enforcement option used generally for smaller debts under £600.00, a warrant of execution means that the County Court Bailiff will enforce the debt. If payment is not forthcoming, property belonging to the other party can be seized to be sold at auction, raising the sum needed to settle the debt and the associated fees.

A High Court Writ

If the debt owed is over the value of £600.00, a High Court Enforcement Officer (HCEO) will be allocated the case to enforce. This option for high court debt enforcement was formerly known as the Sheriff's Officer, and the HCEOs are authorised by the Lord Chancellor to recover debts on behalf of private businesses. The HCEO will notify the debtor that they have been assigned to collect the debt and if no payment has been made or any repayment arrangements agreed within seven working days, the HCEO will visit the premises to enforce the writ, which may include seizing goods. HCEO's are also able to attend premises at various times of the day, namely out of hours attendances if they have been unsuccessful in locating the debtor at previous attendances.

Attachment of Earnings

If the debtor is an individual who is employed and you are aware of the name and details of their employer, you can apply to the Court for an Attachment of Earnings Order, which attempts to recover the debt directly from the debtor's salary over a period of time that is determined reasonable by the Court.

A Charging Order

If the debtor owns property, or holds interest in a property, a Charging Order can be applied for, which means that when the property is sold, the debt must be satisfied from the equity (if any) in the property. This option means that it can be many months or years before the debt is settled, so is unsuitable for most types of commercial debt recovery.

Winding Up Proceedings

If the debtor is a company (and the value of the debt is over £750), it can sometimes be possible to commence winding up proceedings, where the debtor's business will be put at risk if they do not repay the debt.

As this information shows, there can be multiple options when it comes to dept enforcement proceedings, and it can be difficult for businesses that are owed money to know which is the best route for them to take in order to recover the debt in the quickest and most suitable way possible.

As enforceable debt experts, Forbes Collect can help you to navigate the process in the best way for your specific circumstances. Call us today on 0800 689 4176.

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Frequently Asked Questions about Debt Enforcement Services

Due to its often complex nature, businesses often have questions about enforcement and debt recovery. We have compiled some information below on some of the questions we are most often asked on the subject. If you can't find answers that you're looking for here, please get in touch with our expert team, who will be happy to help.

How long is a debt enforceable?

One of the most common questions asked by businesses trying to recover debt is "Can a debt be enforced after 6 years?" and the answer is dependent on the type of debt that is involved and how the situation has been managed thus far. If the debtor has been making payments towards the debt, the money they still owe will not become statute barred and the business can proceed with debt enforcement action if needed.

If the debt hasn't been acknowledged by the debtor or any payments made for a period of six years or more, the debt is no longer enforceable in England or Wales. This is one reason why it is important that businesses who are owed money take enforcement action sooner rather than later to recover the debt.

How to enforce payment of debt

When considering how to enforce a judgment debt, you will need to choose the enforcement proceedings that best suit the type and value of debt that you are owed. This is where the expertise of a expert debt enforcement team can make all the difference to your business. By using their experience and knowledge to choose the best course of action, it can mean that the monies owed to your business are recovered more quickly, and without the stress of trying to manage the process yourself.

For more information about how we can help you with debt enforcement, get in touch with the team by calling 0800 689 4176, request a callback or use our online contact form.