August 6, 2024
Category: News
When a creditor decides to take action to recover a long overdue debt or invoice, they are often met with an array of options which makes it difficult to narrow down the choices.
As with all commercial decisions, speed and cost will be at the forefront of any consideration. So, why choose High Court Enforcement when there are so many other alternatives?
Let’s take a look at the pros and cons of a few common methods.
High Court Enforcement vs Telephone Debt Collection Agencies
Instructing a telephone debt collection agency can be a cheap way of recouping your outstanding debt, but it is important to note that they are limited in the action they can take when payment is not forthcoming.
Evasive debtors will not be deterred by another call or another letter, and empty threats without the power to take further steps can be a handicap. Remember, the debt has reached this stage because calls and letters have not previously worked.
Wilson & Roe may not always collect the debt in full on the first attendance and payment arrangements may be needed, but in the case that the arrangement cannot be be maintained by our in-house collections department, we have greater tools at our disposal than simply sending another letter or making a call. A certificated Enforcement Agent will be instructed to re-attend the property.
High Court Enforcement vs County Court Warrant
For debts of between £600 and £5000, creditors have the option to use either the County Court system or a High Court Enforcement Officer for recovery. Unfortunately, as a country, our civil court system is unable to carry our many of its duties efficiently which has led to inadequate service across many sectors – most notably, enforcement. Many courts have removed direct telephone lines in favour of nationwide numbers in order to vet incoming calls, which makes speaking to someone in the correct department for an update just as challenging as recovering the debt.
At Wilson & Roe, we will assign your case to to one of our client relationship managers who will help you through the process and be on-hand to answer any questions. You will also be given access to our online portal for regular case updates and answering questions.
High Court Enforcement vs Attachment of Earnings Orders
Knowing that the debtor works and receives a regular income can be a useful tool in obtaining an Attachment of Earnings Order via the courts and can result in regular payments being deducted from their salary and sent directly to the creditor. But is this the quickest way to discharge the debt?
A Writ of Control gives a High Court Enforcement Officer the power to remove and sell assets to recoup the balance. An Attachment of Earnings Order may help recover debt from an individual, but not when enforcing against a Limited Company.
High Court Enforcement vs Insolvency Proceedings
Whether issuing a Winding up Order or commencing bankruptcy proceedings, insolvency can be an effective way of enforcing an outstanding debt. But be careful, as these processes can be costly and sometimes it may be exactly what the debtor wants the creditor to do leaving them to no recovery and a big bill to pay.
After a County Court Judgment has been obtained, the only costs a creditor should incur for enforcing a High Court Writ is the cost of £78 to transfer the Judgment to the High Court and, if unsuccessful, an abortive charge of £75 + VAT. Much less than the cost of insolvency proceedings.
High Court Enforcement vs Charging Orders
If the creditor has established that the debtor owns their property, they may believe the best path to recover the debt is to add the debt as a charge on the property. However in most cases, there will be a mortgage on the property and the creditor is unlikely to be in a position to force the sale of the address. To further complicate matters, the debtor may not be the sole owner of the property. Unlike some of the methods discussed above, a Charging Order is something that can be obtained in conjunction with the enforcement of a Writ of Control.
So, What is the Best Route to Take?
There are pros and cons to all forms of debt recovery and there is no ‘one-size-fits-all’ approach. One creditor may have one debt that suits the need for insolvency proceedings and another that would suit High Court Enforcement.
High Court Enforcement is a swift and cost-effective form of enforcement that is not only fair and ethical in a heavily regulated industry but also robust. Additionally, it is important to remember that an authorised High Court Enforcement Officer has a vested interest in the enforcement of your case.
If you have any outstanding debts that would benefit from High Court Enforcement, please reach out for more information.
