Debts and debt recovery

Use this document to assign the benefit (i.e. to transfer the benefit) of the rights you have under a contract. Most rights are capable of being assigned - for example, rights to benefits under insurance policies, rights to repayment of a loan, rights to purchase property and so on. However, it is important to note that you cannot assign any rights under a contract if the contract expressly prohibits that. For use in Scotland only.

This product creates 3 debt collection letters demanding payment for an overdue invoice(s).

You can use it if you have sent invoices (one or more) to a consumer or business for goods supplied or services performed and those invoices remain overdue for payment.

These letters calculate the total outstanding debt as at the date of each letter, including, in some cases, any interest due on the overdue amounts.

The second and third letters can only be used if you've had no reaction from the debtor in response to the previous letter. The third letter is a final 'letter of claim' (also known as a 'letter before action'), which threatens court action if you don't get a response. This also includes the information sheet, reply form and financial statement form that you need to give to the debtor before you can go to court.

These letters are suitable for use where the goods were delivered or services were performed within the UK.

In England and Wales, you can't use them during any 'breathing space' period that the recipient may have been granted under the Debt Respite Scheme.

Guaranteeing steady cash flow is one of the important activities a business can undertake. Setting good ground rules for handling those who default on their credit agreements is essential, and sometimes, of necessity, that involves chasing for payment. This pack provide a series of suitable letters to walk a firm though the process of chasing for payment, from the initial gentle contact letter reminding of obligations and requesting payment, through the process of forewarning that action will be taken, right up to the creation of the required claim form for the County Court.

Use this document to make an application to county court to recover money owed to you through unpaid invoices. Before making this application, you must have already sent at least two letters to the customer demanding payment of the invoices and threatening to take the matter to court if the invoices are not paid. If you have not done this already, use our 'Debt collection letters for unpaid invoices' document. Please note that this document is only suitable for recovering sums from up to two defendants and can only be used in England & Wales. There is no limit, however, on the amount that can be claimed.

This document allows you to draw up a general power of attorney authorising one or more persons to collect debts on your behalf – it is strictly limited to this one purpose. You might want to use this if, for example, you are too busy to chase your debts and you therefore wish to appoint another person to do this on your behalf. This power of attorney is automatically cancelled on your death, mental incapacity or if you become bankrupt. You can also revoke this general power of attorney in writing at any time.

This is a final 'letter of claim' (also known as a 'letter before action'), demanding payment for an overdue invoice(s). In this letter you threaten court action if you don't get a response.

The letter calculates the total outstanding debt, including, in some cases, any interest due on the overdue amounts. It also includes the information sheet, reply form and financial statement form that you need to provide before you can go to court.

Use this letter only if you have sent one or more invoices to a person or organisation for goods supplied or services performed in the UK. Ideally you will have sent at least one previous letter of demand.

It cannot be used if the recipient has disputed your claim for payment. In England and Wales, you also can't use it during any 'breathing space' period that they may have been granted under the Debt Respite Scheme.

When signed, this document will acknowledge the debt that is owed by one person to another, the reason why the debt arose and the amount owed. This serves two very important purposes:

1. It makes it easier to prove the existence of a debt if it is later disputed.
2. It can interrupt or suspend the effect of:

• In England, Wales and Northern Ireland, the Limitation Act 1980 which causes a debt to become unenforceable after 6 years
• In Scotland, the Prescription and Limitation (Scotland) Act 1973 which causes a debt to become unenforceable after 5 years in Scotland

In the latter case, this document can have the effect of restarting the clock and making the limitation period start afresh, although it will not have this effect if the acknowledgement is made after the limitation period has already expired or if the acknowledgement is not made to the person to whom the debt is owed (or his/her agent).

This is not a general guarantee for the payment of a debt but is only to be used as a guarantee where the creditor has commenced legal proceedings against the debtor for payment of an outstanding debt and interest. With this guarantee, the creditor promises to cease proceedings with the understanding that if the debtor does not pay, the guarantor will pay the debt in a series of instalments as specified within the guarantee.

This letter is for situations where a person or business has said that you owe them money in relation to goods or services and you're in dispute over it. You can use it to try and settle the matter by compromising in order to prevent the matter going to court.

If you make a reasonable offer that's rejected and the issue goes to court, you'll have a better chance of any ruling about who pays the legal costs going in your favour.

You can use it if you've received a formal letter of claim, or in relation to an informal allegation or dispute about a debt. There are options to include details of any counterclaim you might have against the other party.

Use this letter to make an offer to a creditor to pay a debt by instalments. With this letter, you will attach your first instalment by way of cheque. Although the creditor is not obliged to accept your offer, attaching a cheque should encourage them. It is suitable for use by an individual, as well as by a business.

Use this document to generate a promissory note, which is a written promise that you – the ‘maker’ - will pay a fixed sum of money to the payee either on demand or on the date specified in the note. The maker can be a limited company, partnership or individual, and the payee may be either a named person or the bearer of the note on the date it becomes payable. Note that no provision is made for interest on the loan.

Use this document to generate a promissory note, which is a written promise that you – the ‘maker’ - will pay a fixed sum of money by way of instalments on specified dates. The maker can be a limited company, partnership or individual, and the payee may be either a named person or the bearer of the note on the date it becomes payable. The note allows for interest to be paid on the loan.

If you wish to assign the payment of a debt that is owed to you to another person (the assignee), you can use this document to do so. Once this debt has been assigned and the debtor has been notified of this assignment, the debtor will pay the debt to the assignee. This document will also create the required notice to the debtor, informing him/her that the debt has been assigned.

If you wish to guarantee an existing or future debt of another to a creditor, you can use this document to do so. This document is suitable whether the loan has already been given, whether the loan will be given at some time in the future or whether the loan will be given at the same time that this guarantee is being signed. The guarantee will also allow you to enter a limit to the amount of liability in the case of default.

If you wish to guarantee the obligations of another under a contract, you can use this document to do so. This guarantee should be used after the contract has already been signed or at the same time that it is signed as you will need to refer to the contract in the guarantee. This document allows you to place a limit on the amount the guarantor will be liable for in the case of default.