As a result of the outbreak of Covid-19, many businesses are now facing financial uncertainty in what can only be described as very challenging times. Understandably, those business will have concerns regarding cashflow and, specifically, whether outstanding monies owed by debtors for services previously rendered will actually be paid.
Regardless of the precarious state of the economy, or whether there has been an unforeseeable global pandemic, there can never be any form of certainty regarding the payment of debts. Even before the outbreak of Covid-19, debts remained unpaid and legal action required in order to aid in their recovery. Taking this into consideration, it is our view that businesses should not let Covid-19 dissuade them from being proactive in the recovery of any debts which are rightfully owed to them.
This is clearly a view which is shared by the Government. The County Courts are considered essential and continue to remain open for business despite the lockdown. Court proceedings are still being issued on a daily basis and hearings are still going ahead, albeit virtually through various mediums such as Skype and Zoom. However, the very fact that hearings are still going ahead, despite the crisis, only highlights the fact that if you are owed money, you should still be trying your utmost to recover it. This is the case perhaps more so now than ever before.
Despite the fact that we are working remotely, Jacksons Law Firm can still assist you in the debt recovery process. Upon receipt of a scanned copy of an invoice and a copy of the contract relating to the debt, we are able to send an initial letter before action to the debtor requesting payment of the outstanding amount. Depending upon whether the debtor is an individual, sole trader or a limited company will determine the protocol we have to consider in respect of the content of the letter and the actions we are required to take prior to issuing proceedings.
If the letter before action does not prompt a payment or a suitable response, we can then look to issue proceedings against the individual or company who owes the debt and the Courts will continue to issue these claims in spite of the lockdown. Throughout this process, we will keep in regular contact with you and deal with the claims process, as necessary, and in the event the claims are defended. If the debtor does not respond to the claim, we can request judgment in default which will result in a County Court Judgment being issued against the debtor. Hopefully by this point the debtors will have paid the sums due and no further action required.
Unfortunately, the only thing we are prevented from during the lockdown is actually enforcing the judgments. Enforcement is only required in the event that the debts remain unpaid following receipt of a CCJ. The reason we are prevented from enforcement is because in-person visits have been temporarily suspended which means that High Court Enforcement Officers are unable to attend upon the debtors’ premises to recover the monies owed or suitable assets. However, as soon as the crisis is over, the judgments can immediately be enforced. It is therefore preferred to have the judgment in place sooner rather than later so that enforcement can be carried out immediately upon the easing of the current restrictions.
Whilst it is not clear how long it will take to wipe out this pandemic, what is clear is that the successful recovery of debts during this period could be crucial to the long-term future of any business. It is therefore vital for businesses to keep proactive in respect of debtors and to pursue any monies owed to them.
If any legal assistance is required in this regard, the experienced team at Jacksons Law Firm are here to help and are more than capable of providing any necessary support. Please contact Michael Sproates at msproates@jacksons-law.com or call 01642 356500 in the first instance.
Please share the article
