Debt Recovery is the process of making individuals and businesses pay debts that are owed and which usually haven't been paid or which are disputed.
There are a number of steps that have to be followed in the process of debt recovery starting with simple communication between the party owed and the debtor.
The purpose of early communication is to establish the debtors means to pay and hopefully for an agreement for repayment to be reached between the party owed and the debtor.
If communication has been unsuccessful then the party owed has the legal right to demand statutory interest and compensation related to the money owed and this should be done in writing.
If this demand is unsuccessful then the party owed can implement more formal recovery methods which commonly involve the employment of specially trained and accredited accountants, solicitors or debt recovery agents.
In many cases the simple act of using a professional debt recovery agent and the associated threat of formal recovery action is sufficient to ensure the debt is repaid.
However, on those occasions where this is unsuccessful the party owed is left with no alternative but to seek redress through the courts.
The party owed must first check whether the debtor has the means to pay the debt owed and, depending upon whether they are able to do so, they can then make a claim through the County or High Court or petition for a winding up order or bankruptcy depending upon the status of the debtor.
With winding up orders and bankruptcy the debtors assets are sold off for the benefit of the party owed.