Debt recovery services
Third party debt order
A Third Party Debt Order is a way of legally enforcing a County Court Judgement. It allows you to request that funds in the tenant’s bank account are frozen to help pay back the total amount of arrears owed.
For this process to be successful, it is vital that you know when funds are due to be deposited in the tenant’s account, as any funds put into the bank account once it has been frozen will be excluded.
Once instructed we will prepare all the necessary paperwork and instruct our legal team to make the application with the court. The court will then issue an interim order and set a hearing date.
The order will then be served to the tenant’s bank who will be required to respond disclosing the amount available and confirming it has been frozen. At the hearing a final order will be obtained and served to the bank. Funds will then be released and sent to you to offset the total amount owed.
£ 750 (inc VAT)
Attachment of Earnings
An attachment of earnings order will instruct the tenant’s employer to deduct a percentage of their wages to pay back the debt owed.
Dependent on the tenant’s salary, you can expect to receive anywhere between 12-17% of the total amount they earn each month.
In order to apply for an attachment of earnings order you will need to have previously obtained a monetary judgement or a County Court Judgement.
It is essential that the details you hold for your tenant’s employment are up to date and correct as if they are not, you may risk the order being rejected and you will still incur fees.
To work out how much the tenants can afford to pay the court will work out the minimum money they need to live on. This is called the protected earnings rate. The amount the tenant owes you will be taken from anything they earn above this rate. This means the amount you receive on a monthly basis could be subject to change.
You will be unable to acquire an attachment of earnings order if:
The amount you are owed is £50 or less
The tenants take home pay is always below the protected earnings rate.
Once instructed we will prepare all the necessary paperwork and instruct our solicitors to make an application with the court.
Upon receipt of the application the court will write to the tenant and ask them to comply with one of the following:
Pay the full amount owed immediately
Complete a statement of means and return this to the court
Failure to respond to the court’s request will result in an enforcement agent serving an order to the tenant instructing them to complete the form.
Further failure to comply can result in the tenant’s arrest so they can be brought to court to fill out the statement of means.
Once completed the court will look at the statement of means and decide how much the tenant can pay in accordance with the protected earnings rate.
An order will then be made and sent directly to the tenant’s employer instructing them exactly how much money to take and when. A copy of the order will then be sent to you for your records. Once payments have been received by the Court they will be passed on to you accordingly.
£ 750 (inc VAT)
High Court Enforcement Officers
High Court Enforcement Officers (HCEOs) are debt collectors who earn their fees from the judgement debtor, but only when they collect. As they are not salaried, HCEOs tend to have higher collection rates than County Court Bailiffs, who are paid whether they collect or not.
Unlike the County Court Bailiff, HCEOs have other advantages as they do not have to give the judgement debtor any advance notice of their intention to collect, giving them the advantage of surprise. HCEOs are also permitted to force entry into commercial premises to enforce, a power not permitted to County Court Bailiffs.
HCEOs (also known as bailiffs) can only be instructed if you have previously obtained a monetary judgement for over £600. Once instructed, they will make three separate visits to your property/properties over a three-month period to attempt to recover the total amount owed. It is essential that if your tenants have vacated your property, that you provided an accurate and up to date forwarding address to ensure you don’t incur any unnecessary fees or delays.
At the end of the process you will be sent a report to indicate if they have been successful or not. If the HCEO’s are unable to collect the debt you will be charged an industry regulated abortive fee of £66 for each address visited.
£ 399 (inc VAT)
Seven Day Demand
A Seven Day Demand is a bespoke legal letter instructing the tenants to make payment and informing them if they fail to do so further legal action can be brought against them.
Once instructed and upon receipt of the necessary information, the Seven Day Demand will be served by First Class post.
£ 79.95 (inc VAT)
A money claim is a simple way of starting a County Court claim for a fixed amount of money, which is owed to you. This allows us to obtain a monetary judgement for the debt and for a County Court Judgement to be registered against the debtor for a period of six years.
The debt can be no greater than £100,000, however anything above this amount can be submitted to the court manually.
Once you have instructed us, the necessary information will be sent to our team of solicitors who will issue the money claim online. The court will then issue the claim within 14-20 working days and will write to the debtor giving them a further 14 days to respond or file defence.
If no defence has been filed within this time limit, our legal team will request that a judgement is awarded and an order will be obtained. In the event the claim is disputed the court will set a hearing date to hear further evidence and make further directions if necessary.
The fee charged does not include the court fee and the amount payable will be dependent on the amount owed:
|Claim Amount||Paper Form Fee||Online Claim Fee|
|Up to £300||£35||£25|
|£300.01 to £500||£50||£35|
|£500.01 to £1000||£70||£60|
|£1000.01 to £1,500||£80||£70|
|£1500.01 to £3000||£115||£105|
|£3000.01 to £5000||£205||£185|
|£5000.01 to £10,000||£455||£410|
|£10,000.01 to £100,000||5% of the claim||4.5% of the claim|
|£100,000.01 to £200,000||5% of the claim||you cannot make a claim online|
|More than £200,000||£10,000.00||you cannot make a claim online|
£ 500 inc VAT plus Court fees
A Debt Trace allows us to track down and recover monies owed. It can be initiated when your tenants owe you money and you don’t have their current address. It is vital that the correct steps are followed to ensure that you find debtors quickly and guarantee they won’t escape detection.
Once you have agreed to Debtor Tracing service, we will instruct our agents and provide them with any relevant information about the people or person you want to find.
Our Debtor Tracing service takes between two to four weeks to complete and once we have ascertained the debtor’s whereabouts we will provide you with their new address and work details, where applicable. You are then free to take them to court and commence legal proceedings to reclaim outstanding monies as well as the tracing fees.
You will only be charged for the service if we are successful in locating a current and verified residential address.
Our tracing agents not only provide a rapid, efficient and compliant service – they also have a 98% success rate.
£150 (inc VAT)
A Charging Order can be applied for once a judgement has been obtained. It secures the debt against the home or other property that the defendants may own. This makes the debt very serious. It means that they could lose their home if they don’t pay back what they owe. Once a charging order has been made, you can apply to the court for another order to force the defendants to sell their home. This is called an order for sale.
£999.95 (inc VAT)
A statutory demand is a special type of written request from a creditor (someone who is owed money) for payment of a debt. The person or company that receives the demand has 21 days to settle the debt or ask the court to set aside (dismiss) the demand. The creditor may present a petition to court for a bankruptcy order or winding-up order if, after 21 days, a statutory demand claiming a debt of more than £750 is not paid, secured (an agreement reached for payment) or set aside.
£ 500 (inc VAT)
A Bankruptcy Petition is an application for a Bankruptcy Order to be made against a debtor on the grounds that they are unable to pay the monies owed.
The court will consider someone unable to pay if either of the following conditions is met:
A creditor who is owed more than £5,000 serves a Statutory Demand for the debt to be paid and it is not paid, or secured, for example by way of a Charging Order
A settlement cannot be agreed within 21 days, or the debtor hasn’t applied for the Statutory Demand to be set aside
When a Bankruptcy Order is awarded, it will ensure that any assets are used to clear the debt. However, this course of action can be particularly risky if the debtor does not have any assets. If this is the case then you are at risk of the debt being written off.
We can offer expert advice and help you present a Bankruptcy Petition to court to help you recover debts.
£ 2499.95 (inc VAT)