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Debt Recovery after Covid



Businesses and landlords across the country are still feeling the financial pressure of unpaid invoices and rent following the coronavirus pandemic. As life slowly starts to return to normal action needs to be taken now to secure payment of these debts.

Senior Dispute Solicitor, John Osman discusses the options available to both landlords and businesses who need to maximise their cash flow in these uncertain times.

It has been reported that the country’s largest banks are recruiting over 700 new staff to their own debt collection teams. These staff will be in contact with individuals and businesses who have defaulted on loans and mortgage payments in the coming months.

If you are owned money it is better to start pursuing your debts, rather than wait to be pursued by your creditors.

If you are owed money you need to remember the three P’s and be:

  • Positive
  • Proactive
  • Promptly

You need to be Positive

Although the current economic outlook is uncertain, you need to be positive and remember that there is still a good chance that you can recover the debt.

You need to be Proactive

The Courts have indicated that they would welcome businesses and landlords being proactive and initially gently reminding their debtors upon the sums owed. By writing in a friendly, constructive tone you can take steps to ascertain your debtors true financial position. Once they have responded, if you are willing to be flexible you can work with them to discuss repayment options and their credit limits. If an amicable agreement can be reached, that is cost effective and good news, however make sure you stay in regular contact and make sure they provide regular financial statements outlining their current debt and their ability to pay. Don’t be afraid to ask for debt payments to be increased, if your debtors financial position improves.

You need to act Promptly

If your debtor refuses to correspond with you or fails to make any repayments, you need to act promptly to prevent the debt escalating.

At this time you should consider instructing a dispute resolution solicitor. Instructing a solicitor, does not mean that the situation needs to turn hostile, Mogers Drewett use many tools to recover sums for our clients, which includes:

  • Informal letters encouraging your debtor to respond
  • Formal letters seeking Payment Agreements
  • Letters Before Action, officially commencing the litigation process
  • Legal Proceedings, should not resolution be found

For more information on how to start your debt recovery please speak to John Grace on 01749 835273 or email john.grace@mogersdrewett.com. To speak with a dispute solicitor about the next steps in recovering money owned to you please contact John Osman on 01749 835273 or email john.osman@mogersdrewett.com. John has over 20 years of civil, commercial and landlord debt collection experience.

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