Debts and debt recovery
This part of the site provides information and documents pertaining to debt and debt recovery including Debt recovery, Promissory notes, Powers of attorney, Assignments of debt and more. In a competitive business environment, positive cashflow can be critical to survival, and making sure that your customers promptly pay the money they owe you is central to that goal.
Debt, bankruptcy and liquidation
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 document creates three 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.
This document is suitable for use where the goods were delivered or services were performed within the UK.
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.
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.
Use this document 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 they have disputed your claim for payment.
This letter is suitable for use where the goods were delivered or services were performed within the UK.