Frequently Asked Questions

What is the Small Claims Court?

“Small Claims” are debts under £5000 in value. Any County Court is used to facilitate these claims.

Will I have to go to Court?

Probably not, 95% of all debt matters proceed without the need for actual attendance at Court. If the matter is defended, however, then even if you are instructing a solicitor you may be required to attend the Court as a witness.

Is there any advantage in bankrupting the debtor?

Personal satisfaction? Unfortunately personal satisfaction won’t pay the bills! Bankruptcy can be a very effective tool, but only in certain circumstances. There is insufficient room to detail all the workings of insolvency action on this card, but we are more than happy to recommend and discuss this action when it is appropriate.

What is a High Court Enforcement Officer?

A High Court Enforcement Officer (HCEO) is the High Court equivalent of a County Court Bailiff. They work in much the same way as a bailiff, and will attempt to enforce payment on Judgment Debts over £600. HCEO’s are able to remove certain goods belonging to the debtor which may be sold at auction.

Will a judgment affect the debtor’s credit rating?

The short answer to this question is YES! If a Judgment is registered against a debtor, this will stay on their record, and show up on credit searches, and in all likelihood, make it very difficult for a debtor to obtain any kind of credit, including mortgages, loans, credit cards and even mobile phones.

The Court entered Judgment in my favour – why haven’t I been paid?

Obtaining Judgment is only the first stage! Getting the money is the second stage when enforcement action may need to be taken.

I have judgment against the company - why can’t I get my money back – the director is still driving around in a flash car?

There can be a multitude of reasons, however one of the most common misunderstandings relates to companies and private individuals. If action is being taken against a company, you are not taking action against the representatives or officers of the company. It may well be that the “flash car” is an asset of the company, but it equally could be personally owned by the director.

It is often worthwhile when commencing trade with certain companies to insist on a personal guarantee for the debt from the director. This way you can then personally pursue the “flash car.”

Will I definitely get my money back?

No. The more you know about your debtor and the quicker action is taken to recover an outstanding debt, the more chance you have of recovering the money due. There are some genuine cases where the debtor really cannot pay. Every debt is different, and the action taken to recover it should reflect the individual circumstances.

How do I avoid bad debts?

In an ideal world, only obtain payment in advance. If this is not possible then ensure you have a robust credit control system so that any debt problem is recognised at an early stage and can be dealt with before it becomes a “bad debt”.

To obtain further information or to instruct us please contact Clare O’Reilly on 01823 445461 or via email.