Below is a brief overview of the undefended debt recovery process.

Business to Business Debts

Step 1

Letter before Action (£5+VAT)

• We receive instructions from you and obtain any further information that is required.
• A Letter before Action is sent - the debtor has 14 days to respond.

Step 2

Court Proceedings

• If no satisfactory response is received to the Letter before Action, we will issue court proceedings.
• The debtor has 14 days to file a Defence. (If the debtor files an acknowledgement, this can be increased up to 28 days).
• If no Defence is filed, judgment is requested by us automatically.

Step 3

Enforcement of the Judgment

Once Judgment in Default obtained, enforcement action can be taken in a range of different ways:

• Arrangements
  • e.g. instalment payments to us. Instalments will be monitored by us and in the event of default, the debtor pursued.
• County Court Bailiffs / High Court Enforcement Officer
  • County Court, if the debt is £600.00 or under;
  • High Court, if the debt is over £600.00
• Charging order
• Attachment of earnings order.
• Third party debt order
• Bankruptcy/winding up proceedings

Business to Consumer Debts

Step 1

Letter of Claim

Initial information to be provided by the creditor

The creditor is required to send a Letter of Claim to the debtor, which should contain the information and documentation set out in the Pre-Action Protocol for Debt Recovery.

If the debtor does not reply to the Letter of Claim within 30 days of the date on the letter, the creditor may start court proceedings.

Response by the debtor

The debtor should use the standard Reply Form (annex 1 to the protocol) to respond. The debtor can request copies of any documents from the creditor, and enclose documents they think are relevant. The creditor should not start court proceedings less than 30 days from receipt of the completed Reply Form, or 30 days from the creditor providing any documents requested by the debtor, whichever is later.

If the debtor indicates that they are seeking legal advice, the creditor must allow the debtor a reasonable period of time to do so.

Disclosure of documents

The parties should exchange and disclose documents as early as possible, to help them understand each other's position. The creditor must provide documents or information (or otherwise explain why the documents or information requested are not available) within 30 days of any request.

Taking steps to resolve the matter and alternative dispute resolution (ADR)

If the parties cannot come to an agreement about the repayment of the debt, they should consider using an appropriate form of ADR. If the parties reach an agreement for repayment of the debt, which the debtor subsequently breaches, the creditor must send an updated letter of claim and comply with the Protocol afresh before issuing court proceedings.

Final Letter before Action

If the debtor responds to the letter of claim but an agreement is not reached, the creditor should give the debtor at least 14 days' notice of their intention to start court proceedings.

Step 2

Court Proceedings

• If no satisfactory response is received to the Letter before Action, we will issue court proceedings
• The debtor has 14 days to file a Defence. (If the debtor files an acknowledgement, this can be increased up to 28 days)
• If no Defence is filed, judgment is requested by us automatically

Step 3

Enforcement of the Judgment

Once Judgment in Default obtained, enforcement action can be taken in a range of different ways:

• Arrangements
  • e.g. instalment payments to us. Instalments will be monitored by us and in the event of default, the debtor pursued
• County Court Bailiffs/ High Court Enforcement Officers
  • County Court, if the debt is £600.00 or under;
  • High Court, if the debt is over £600.00
• Charging order
• Attachment of earnings order
• Third party debt order
• Bankruptcy/winding up proceedings

For more information

The above is a brief overview of the process and we are more than happy to discuss with you any of the stages in more detail.

You will be kept fully informed of how your matter is progressing and instructions will always be sought before any step is taken.

A glossary of legal terms can be found here.

For further information on debt recovery or to make an appointment for an informal first discussion call Sarah Moore on 01228 552222 or email collections@burnetts.co.uk .