Debt Recovery Process
We successfully recover 84% of instructions prior to issuing legal proceedings!
Experience has taught us that recovering debt successfully requires an individual approach, no two cases will be the same, each debtor will have their own unique circumstances and recovering each debt will have its own unique challenges.
We use expert negotiation, determination, bespoke case management and when necessary the correct use of appropriate litigation to deliver an ethical and fully compliant service that achieves outstanding results.
The most important factor in a successful recovery is to take action quickly. If the debtor won’t pay or can’t pay, there will no doubt be other debts they won’t or can’t pay. You must let them know that you are serious and get to the front of the queue for payment.
Advocate’s Debt Recovery Process
We will answer any questions you may have and explain that the services we supply along with any pre-legal expenses are at no cost. You will not be asked to pay any subscription fees or upfront costs, only when we have successfully recovered a debt will we receive payment.
Telephone: 0117 403 1785
Preparing a case
Once you have decided to proceed we will ask you for details regarding the extent and nature of the debt, copies of relevant invoices, statements and delivery notes and details of any earlier action taken to try and recover the debt.
We will then generate a case reference number and open a dedicated file. We will also provide you with our terms and conditions of business and an engagement letter.
Following the opening of a case file we will carry out initial investigations examining the debtor’s financial position, current trading status and property ownership.
On the same day you instruct us we will send the debtor an initial letter of demand requesting payment of the outstanding debt within 7 days. The initial letter of demand will be specific to the circumstances of the debt and details the amount owed plus late payment interest and compensation.
In most straight forward cases the interest and compensation will cover our costs and fee to this point. In cases where investigations have been complex and time consuming recovery costs will also be added.
The initial letter of demand is designed to meet debt recovery litigation protocol, it informs the debtor that you have instructed a debt recovery practitioner and that proceedings will be issued if payment is not made.
Our successful recovery rate following an initial demand is 52%.
If no response is received within 7 days we will send the debtor a final demand letter and contact them by telephone.
Our telephone contact process is just one of the disciplines that set us apart from traditional debt collection agencies and solicitor practices. The process is professionally structured and has several benefits:
- Telephone contact increases the sense of urgency and often leads to a successful payment
- It allows us to verify the debtors details that may be required in possible future litigation
- We can identify cases where the debt is genuinely disputed and litigation may not be appropriate
- We can identify cases where through hardship the debtor cannot pay in full and negotiate an installment plan
- We can identify cases where debtor engagement is appropriate and should be the next course of action
Telephone contact when performed in conjunction with initial and final demand warning letters is a very effective way of recovering a commercial debt.
A final demand letter gives the debtor a further 7 days notice of legal action and explains the consequences of a statutory demand or court judgment against them.
Telephone contact will be made with the debtor during the 7 day notice period.
Recovery costs are added to the final demand amount to be paid by the debtor to cover our fee.
Our successful recovery rate following telephone contact and a final demand is 84%.
If no response is received within 7 days debt recovery litigation protocol has been completed and formal legal action can be taken.
At this stage we make further inquiries to examine the debtor’s ability to pay. If we can see evidence that the debtor has the ability to pay if pressed then, depending on the circumstances of the debt and debtor, and before commencing legal action we may decide to engage the debtor by visiting their premises.
Visiting a debtor at their premises allows us a final opportunity to explain the consequences of a court judgment against them and often leads to immediate payment. Our engagement team are fully qualified and trained to act with an ethical approach to debtors and the circumstances of the debt.
Engaging with a debtor at their premises provides a valuable insight into the financial position of the business and the businesses’ assets.
Our successful recovery rate following debtor engagement is 88%.
If by the end of this stage we have been unsuccessful in recovering the debt the only option remaining is to issue legal proceedings.
We will contact you prior to commencing legal action with full details of the costs involved.
Formal legal action can be commenced either by way of insolvency action or by way of court proceedings. The most appropriate course of legal action will be based on the debtor information we have compiled.
If from our investigations and the previous steps we have taken to recover the debt it appears that formal court action is unlikely to result in payment and we did not trace any assets we would advise you accordingly and recommend that the debt be written off.
The services we have supplied up to this point and before issuing legal proceedings are completely free of charge.