Starting 2020-12-31 Great Britaion is no longer member of the EU. It means that no longer available to use simplified procedures and benefits of EU in debt recovery process.
Most debts in UK are settled during the pre-litigation process. This is the most cost-effective way for you to recover your debt in UK. Therefore, in the best interests of the Client, we always commence the pre-trial debt recovery without any direct court intervention and conflict with the debtor.
In pre-litigation debt collection, first of all, it is important to collect data that allows you to assess the debtor's solvency (assets, activity, company structure, employment relationship, etc.) and the reasons for the debt. Therefore, we check various databases, contact and communicate with the debtor, in some cases even visits.
Why do we advise clients to pursue their debt claims out of court?
First and foremost, this is the shortest and cheapest way to recover, with lawyers charging an hourly rate during the trial (typically 100 - 150 GBP per hour plus VAT), so with low to moderate debt, court costs can easily exceed the debt. In addition, going to court can be seen by the debtor as an exaggerated measure, and he may try to delay the process, for example challenging the quality of the work, which increases the cost of the process. Costs incurred in legal proceedings may be reimbursed in the event of a legal action, but it is necessary to obtain information as to whether there is a possibility that the debtor will have any assets or income to cover the costs of the proceedings. In this respect, pre-litigation recovery is more flexible, as there are often situations where the debtor, in order to avoid the attention of the debt collector, covers the debt from other sources (eg the shareholder pays the company debt from personal funds, the family pays debt for the emigrant member).
As we have already mentioned, we advise our clients on judicial debt recovery only after collecting data and assessing the debtor's ability to cover the debt and costs of the proceeding, as well as seeing the debtor not cooperating or engaging in malicious activities (eg preparing for bankruptcy procedures and trying to win time).
Due to our successful specialized debt recovery abroad activities and our well-established partner network, we will offer you debt recovery lawyers in UK if you need litigation and representing in court. Our partners will provide you with qualified legal assistance during the legal debt recovery process in UK.