No creditor might want to dedicate important resources to recovering debt in which this may be prevented. It is important that where money which you're owed has not been paid, you have the help of specialist attorneys which can pursue this for you personally as a matter of urgency. Sometimes taking quick action will produce the difference in whether you can recover the debt effective.
Recovering Commercial Funding in Scotland
In BBM Solicitorsour commercial team understand the realities of being made to recover commercial debt, regularly working with companies to place systems and contracts in place that increase the danger of bad trades. However, we also value that cases do arise where the repayment of debt will be withheld or simply cannot be compensated, requiring more formal actions. Our team offer an expert service, navigating our customers through the legal procedures necessary to recover the industrial debt they are due.
Recovering Due Debts: Socialize with the debtor
It's highly recommended that when debts fall due, a creditor needs to speak to the person or organisation in question, making them aware of the circumstance. It's important to enter some kind of dialog with a lien: outstanding debt may be a result of absentmindedness on their part, and a gentle reminder might be enough to result in payment. However, it could be possible that they are refusing, or lack the resources, to make payment to the debt.
Where the contract permits it, or where the customer is a business insured by the late payment of commercial debts laws, interest could possibly be put on the amount they owe.
It is essential that creditors give debtors fair warning of the likelihood of legal actions being taken against them if they don't create payment within a reasonable period, e.g. seven days.
In BBM Solicitors, we regularly engage with debtors on their lenders' behalf. It's our experiences that getting in touch with a debtor, and notifying them of the results of the actions, will normally yield results for creditors.
Taking formal legal action to Recoup debt
When a debtor fails to make payment in an outstanding debt, and has been given notice of the consequences of the actions, a creditor may then move to raise formal legal proceedings .
Pursuing Insolvency Options
Regardless as to whether a debtor is a corporate body or an individual, it's possible for lenders to benefit from the bankruptcy regime to recover the debt. The principles, however, are slightly different for every Sort of debtor:
Where a debtor is a limited company and the debt is undisputed, often the best method of forcing payment is a 72 hour winding up requirement, which demands the satisfaction of the debt over the timeframe. This entails Sheriff Officers operating a demand notice we have drafted, calling for repayment of the debt. Where payment isn't coming (and not contested ), a lender may subsequently seek the court's permission to set the company into liquidation, and to create a liquidator. This type of demand will prompt a response!
Where a borrower is an individual having a little interest in real estate, it is likely to set them into bankruptcy to secure outstanding debt. This is known as'sequestration'. But, there are limitations on what could be done with a debtor's house, particularly when their family lives together.
Proceeding with Diligence
Assuming that a debtor hasn't positively responded to, either or secured against, a lender's efforts to recover commercial debt, and that the bankruptcy regime would not be helpful, a lender may request the court to issue an order (known in Scotland as a decree) recognising that the debt is expected.
Depending on the value of an outstanding debt, a request for a court to provide decree should be raised in one of 2 areas. The Sheriff Court will handle many legal disputes concerning debt recovery, while legal action regarding debts of a high price, e.g. above #100,000 who are extremely complex, should be brought before the Court of Session. The value of this debt will also determine the courtroom procedure and time frames which will need to be observed.
You will find a number of choices available to creditors pursuing diligence against a debtor. The usefulness of the measures will be based on the circumstances in question. The options available are as follows
Earnings Arrestment
That is an order in the courts who instructs a debtor's employer to deduct the money owed to creditors straight from their monthly wages. However, there is a limit on the sum which can be taken out of a borrower's salary, based on how much they earn.
Arrestment
It is open to lenders to prevent debtors from getting money they have in their bank account, although additional resources certain minimal amounts may be left. This step will have paperwork being completed by debtors, stipulating that money be subtracted from their account and paid to lenders, through the courts, in fulfillment of their outstanding debt.
Inhibition
Where a borrower does not have any savings or is jobless, but does own property, a creditor could prevent them from promoting it. This secures the value of their home for the lenders for a period of up to five years.
Attachment
This involves Sheriff Officers creating an inventory of property capable of being marketed, e.g. non-refundable things possessed by the borrower such as a car, that may be seized and sold to repay the outstanding debt. Attachment doesn't include property within a debtor's home. This will simply be capable of seizure where an'Outstanding Attachment order' has been allowed by the courts.
At BBM Solicitors we've got a long, successful history of working together with businesses to ensure the payment of all debts. Our team offers advice and assistance that reflects our customer's requirements, providing effective solutions to legal problems. We can handle all aspects of your case, including contacting debtors, increasing court activities, and representing your interests when required. If you need help in regaining commercial debt, please contact our commercial team at BBM Solicitors.
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