LETTER BEFORE ACTION
Before issuing any legal proceedings a letter before action (LBA) should be sent to a debtor. An LBA can be sent for as little as $1.50 plus VAT and on average, 86% of cases result in payment at this stage.
If you send a letter before action to your debtor but you do not receive a satisfactory response then the next stage in the legal process is to issue legal proceedings through the County Court. The debtor will be sent a court form requiring them to pay the debt, plus interest and costs within 14 days.
COUNTY COURT JUDGMENT (CCJ)
A County Court Judgment (CCJ) is a Court Order that confirms that the debtor has defaulted on payment. A CCJ can be obtained immediately after the expiry date of the County Court Claim. The CCJ is the final decision by the Court which gives you the power to take enforcement action in order to collect the debt.
Once a County Court Judgment has been obtained, it is then possible to ‘enforce’ that debt immediately. At Lost Coins Capital our paralegals will always advise on the most appropriate method of enforcement based on their experience and expertise with similar cases.
Across all stages of debt recovery, insolvency proceedings may be required. If a debtor does not make payment on demand and the debt is not disputed, they are technically deemed insolvent.