Are you thinking about using a debt collector?

 

If you are owed money and your debtor is refusing to pay up, you may want to use a debt collector to recover the debt for you.

When you contact a debt collector they will ask you for information about the debtor and the debt you wish to collect. They will then assess the debt and conduct an initial investigation in order to determine if the debtor actually has any money or assets that could be sold in order to raise the necessary cash.

What methods do debt collectors use?

Debt collectors have a number of processes they can try in order to get the debtor to pay up. They can call and write to the debtor, conduct personal visits, initiate bankruptcy proceedings against an individual or winding up proceedings against a company, employ the services of bailiffs and initiate litigation or court proceedings.

How can the court help you?

There are a number of things the court can do in order to help you recover your debt. A charging order can be placed on the debtor’s assets so that when they are sold you receive the money owed to you out of the sale proceeds. In addition, a charging order can divert funds from your debtor’s creditors to you. An attachment of earnings allows you to recover the debt directly from the debtor’s employer and a garnishee order allows a direct debit to be set up from the debtor’s bank account to yours.

Debt collectors usually work on a commission basis; they will charge you a percentage of the money recovered. Some operate on a ‘no success, no fee’ basis, but make sure you check any such agreement thoroughly before signing to ensure there are no hidden costs.

What are the pros and cons of using a debt collector?

The benefits of using a debt collector include showing the debtor that you are serious about collecting the money they owe you. This may prompt them to act quickly and settle the debt with you instead of dealing with the debt collector.

On the other hand, there is only so much a debt collector can do. There may be some circumstances where it’s simply not possible to recover the debt. This could be the case if the debtor simply has no money or assets. In that case hiring a debt collector is a waste of money.

If the debt is very old or is disputed, you may need legal advice from a specialist solicitor instead of the services of a debt collector. A solicitor specialising in debt collection can advise you on the best course of action for recovering your money.

We can put you in touch with a solicitor - call us on 0800 1777 162 or fill in the web-form and we will talk to you and start the process.

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