What Happens if the Debtor does not Pay?
Once the 14-day process has been completed we will be in a good position to advise you on what you should do next. We will have gathered much information during the process even if the debtor did not respond to our action.
If that information indicates that the debtor is unable to settle the debt or there is a high risk that the business will cease trading, we would advise you to write off the debt and claim tax relief on the loss. We would never advise you to take expensive legal action when in all probability there is little or no chance of recovering payment.
When it is clear that the debtor could pay and that legal action is likely to result in payment we will advise you accordingly. We will supply full details on the recommended legal action and the legal process along with the itemised costs involved in taking the action.
It is entirely your decision on whether or not proceedings are issued against the debtor. Should you decide to go ahead we will transfer our file to our solicitors and instruct them to issue the proceedings. If for whatever reason you decide not to pursue the debt through legal action we will close our file. If we are instructed to close our file it will be without cost to the client.