Recovering a debt can be stressful and time-consuming, so it is always best to focus on preventing debt issues before they arise. At Talbots Law, we advise businesses and individuals on how to protect themselves from bad debts.
How to Reduce the Risk of Unpaid Debts
1. Conduct Background Checks
- Before offering credit, check a client’s credit history and financial stability.
- Use credit reference agencies to assess risk.
2. Use Clear Contracts & Payment Terms
- Ensure contracts include clear payment terms, interest for late payments, and enforcement clauses.
- Require upfront deposits for large transactions.
- Well-drafted agreements are essential in preventing debt issues before they escalate.
3. Send Regular Payment Reminders
- Many late payments are due to simple oversight.
- Set up automated reminders for invoices.
4. Act Quickly on Late Payments
- Do not allow debts to accumulate.
- If payment is overdue, contact the debtor immediately. Prompt action plays a key role in preventing debt issues from worsening.
What to Do If a Debt Arises
If a client refuses to pay, act quickly:
- Send a Letter Before Action (LBA) – a formal demand for payment.
- Consider mediation – negotiation may resolve disputes.
- Take legal action if necessary – do not delay enforcement.
Supporting your Debt Recovery Challenges
Recovering unpaid debts can be a frustrating and time-consuming process, particularly if you are unfamiliar with the legal procedures involved. As experienced civil litigation lawyers, we have put together a clear, step-by-step guide to help individuals and businesses understand the debt recovery process in England and Wales.
Our series of comprehensive articles will walk you through each stage, from initial communication with the debtor to enforcement of a court judgment.
For further information and guidance, read the full series:
- Step 1 – Contacting the Debtor
- Step 2 – Sending a Letter Before Action (LBA)
- Step 3 – Issuing a County Court Claim
- Step 4 – Default Judgment & The Debtor’s Response
- Step 5 – Enforcing a County Court Judgment
- Step 6 – Warrant of Control: Sending Bailiffs to Recover a Debt
- Step 7 – Writ of Control and HCEOs
- Step 8 – Charging Orders and Orders for Sale
- Step 9 – Attachment of Earnings Order
- Step 10 – Third-Party Debt Orders
Expert Legal Advice
At Talbots Law, we help businesses and individuals prevent debt issues and recover debts through credit control strategies, legal debt recovery services, and enforcement action when necessary.
Our debt recovery product, Talbots Collect, is a fixed-fee debt recovery product specifically focussed on business-to-business debts that is fast, simple, and delivered at a competitive price. If you would like to speak with one of our debt recovery experts, please complete the form below.
Disclaimer
The contents of this blog or any other published by Talbots Law cannot be considered as legal advice. You should take no action without prior consultation with a qualified solicitor or legal professional. The contents of this blog refers to the process in England and Wales.
This blog is written by Daria Stepien, a Legal Executive (FCILEx) in our Dispute Resolution team.