COVID-19 – Life and Debt
Debt levels continue to soar for businesses within the UK, as a result of the Coronavirus pandemic, with accountants previously estimating that there would be a rise of an astonishing £26bn being borrowed from banks in 2021.
Debt generally arises as a result of unpaid invoices for goods and services, provided in both a commercial or individual capacity. Here at Enoch Evans LLP, we are able to assist with all varieties of debt recovery work including both non-disputed and disputed matters.
The main things to consider when assessing a debt are:
- Who the debt is owed by;
- The age of the debt;
- The amount of the debt; and
- The prospects of being able to recover the debt.
Who the debt is owed by
It is vital to ensure you are pursuing the correct person or company (and whether there are multiple entities that you can pursue). It is common for companies to have trading names which are different to their official legal name.
Age of the debt
Under the Limitation Act 1980, you have a period of 6 years from the date of expiry of an invoice to bring a claim in respect of the sums due and owed.
Amount of the debt
It is imperative to substantiate the amount owed under the invoice or agreement. The onus will be on the Claimant to prove their claim and evidence that the sums being claimed are due to them.
It may also be possible to claim interest from the debtor for the late payment of an invoice, as well as compensation. The amount of interest and compensation will vary, depending upon the sums due.
Prospects of successfully recovering the debt
It is important to undertake the relevant checks and/or searches to ensure that it is economical to pursue the debtor for outstanding monies. For instance, before pursuing a commercial debt, it is good practice to ensure the debtor company is showing as 'active' on Companies House.
Enoch Evans LLP is able to act on behalf of both Claimants and Defendants in respect of debt recovery matters. We offer a competitive pricing structure to ensure everybody has access to services suitable for their requirements.
If you would like to talk through any debt related issues, please do not hesitate to contact Poppi Herald, a Paralegal within the Litigation Department, by telephone on 01922 720333 (Walsall) or 0121 355 2336 (Sutton Coldfield) or alternatively via email email@example.com.