Debt Recovery: Simplified

Together we are Forbes


26 October, 2020

Sadie Butler
Head of Forbes Collect

The prospect of recovering a debt can be daunting if you are unsure as to what this may entail. Below we offer an overview of the usual stages of debt recovery, from Pre-Litigation to Enforcement.

  • Pre-Litigation

Letter Before Action (LBA)

The first step we will take on your behalf is to issue the debtor with a Letter Before Action. This will explain to the debtor that we have been instructed to recover the debt, together with a breakdown of the debt.

For business to business debts, this breakdown will include:

  • The outstanding invoices;
  • Statutory interest at the rate of 8% over the Bank of England base rate, or the relevant contractual interest;
  • Statutory compensation of £40 - £100 per invoice.

Recovery of these additional amounts can significantly enhance the amount recoverable from the debtor and can ultimately contribute, if not cover, our fees for the service.

The LBA will grant the debtor 14 days to make payment and outline the relevant further action that can be taken upon the expiry of such.

Please note that if your debtor is an individual, we can claim 8% statutory interest, and they will be granted 30 days to make payment.

  • Court Proceedings

County Court Claim

If the debtor fails to make payment at the Pre-Litigation stage, we can issue a County Court Claim on your behalf. The Court fee payable to do so will be added to the debt, together with a fixed recoverable cost of £50 - £100 depending on the size of the claim.

Once the claim has been issued, the debtor will have 14 days to respond.


Should the debtor admit or fail to respond to the claim, we can enter for default Judgment on your behalf. Again, we can add £22 - £30 of an additional fee to the debt for doing so, depending on the size of the claim.

Once judgment has been obtained, should the debtor fail to make payment in full in 30 days, the Judgment will remain on their record for 6 years (and will be marked as 'satisfied' should payment be received after 30 days). We often find that this is a significant threat to the debtors and therefore can often prompt payment at this stage.

  • Enforcement

If the debtor still fails to make payment after a Judgment has been obtained, we can take steps to enforce it on your behalf.

There are several enforcement options available, however the most common method is to instruct the High Court Enforcement Officers to obtain a Writ of Control to attend the debtors' premises. They will seek to recover funds or tangible assets, and this is ultimately one of the greatest threats to a debtor.

The Court fee of £66.00 will be added to the debt, along with the agents' costs for attending the premises.

The above offers an overview of the typical debt recovery process and the relevant steps involved in pursuing overdue invoices. However, should you wish to discuss the above in more detail, please do not hesitate to get in touch and we can also provide our full fee structure which is based on the stages outlined above.

For more information contact Sadie Butler in our Forbes Collect department via email or phone on 0333 207 9388. Alternatively send any question through to Forbes Solicitors via our online Contact Form.

Learn more about our Forbes Collect department here

Failure of employers to deal with employment issues during added…

Debt Recovery: Case Study

Contact Us

Get in touch to see how our experts could help you.

Call0800 689 3206

CallRequest a call back

EmailSend us an email

Contacting Us

Monday to Friday:
09:00 to 17:00

Saturday and Sunday: