Immediate Debt Recovery Actions #
If a debtor isn’t paying and time is critical, take these urgent steps.
Step 1: Secure Your Position #
- Gather essential documents immediately:
- Invoices & contracts – Ensure all amounts and terms are correct.
- Payment history – Bank records, bounced cheques, or failed transfers.
- Communication records – Emails, letters, call logs proving requests for payment.
- Security agreements – Review personal guarantees or collateral clauses.
- Trading history – Any patterns of late payment or prior disputes.
- Assess risk before contacting the debtor:
- Company searches – Check for insolvency risk on Companies House.
- Court records – Look for recent CCJs or legal action against them.
- Asset checks – Identify any property, vehicles, or accounts they own.
- Protect your assets immediately (if applicable):
- Exercise “Retention of Title” rights – Retrieve unpaid-for goods.
- Stop all further supply/services – Avoid adding to the debt.
- Inform credit insurers – If covered, start the claims process.
Step 2: Contact the Debtor NOW #
- Call the decision-maker directly – Avoid lower-level staff.
- Confirm payment status – Ask “When can we expect full payment?”
- Send immediate written notice – Confirm call details via email.
- Use multiple contact methods:
- Phone + Email – Documented follow-ups.
- Formal Letter (via Recorded Delivery) – Adds legal weight.
- In-person visit (if appropriate) – Shows urgency.
- Alternative contacts – Reach out to directors/owners if needed.
Use this template for an immediate demand email:
Subject: Urgent Payment Required – [Invoice #]
Dear [Debtor’s Name],
Our records show an outstanding balance of £[Amount], due since [Due Date].
Please arrange full payment immediately. If we do not receive funds within [X days], we will escalate the matter, which may include:
- Late payment interest & fees under the Late Payment of Commercial Debts Act.
- Formal legal proceedings including a statutory demand or CCJ application.
- Third-party enforcement such as debt collectors or High Court enforcement.
Please confirm receipt of this notice and your intended payment date.
Regards, [Your Name]
Step 3: Apply Immediate Legal Pressure #
- Issue a Statutory Demand – If the debt is over £750 (companies) or £5,000 (individuals).
- Send a Letter Before Action (LBA) – A final warning before court action.
- Freeze Debtor’s Assets – Apply for a freezing order if fraud is suspected.
- Use High Court Enforcement – If you already have a judgment over £600.
- Consider Insolvency Action – If the debtor is likely to collapse.
Use this template for a Statutory Demand Notice:
Subject: Statutory Demand for Payment – [Invoice #]
Dear [Debtor’s Name],
This is a formal Statutory Demand under the Insolvency Act 1986. You owe £[Amount], which has remained unpaid since [Due Date].
You have 21 days from the date of this letter to settle this debt. If payment is not received, we may:
- File for winding-up/bankruptcy proceedings.
- Seek High Court enforcement against assets.
Please consider this a final notice. We strongly advise you to settle immediately to avoid further costs.
Regards, [Your Name]
Step 4: Emergency Court & Law Enforcement Actions #
- If fraud is suspected:
- Report to Action Fraud.
- Notify the police (for asset misappropriation or deception).
- Apply for court orders if needed:
- Freezing Orders – Stops the debtor from moving money.
- Possession Orders – Recover goods supplied but unpaid for.
- Attachment of Earnings – Deducts debt from debtor’s salary.
- Use emergency court procedures:
- Ex-parte applications – Quick decisions without the debtor present.
- International orders – If the debtor may transfer assets abroad.
Final Checklist: Immediate Debt Recovery Plan #
Within the First 24 Hours #
- Review invoices, contracts, and all payment records.
- Check Companies House, CCJ records, and asset ownership.
- Contact debtor immediately via phone, email, and letter.
- Cease supply/services and secure any unpaid-for goods.
After 48 Hours (If No Payment or Response) #
- Send a final demand letter warning of legal action.
- Consider issuing a Statutory Demand (if above legal thresholds).
- Engage solicitors for Letter Before Action (LBA).
After 7 Days (If No Payment) #
- Begin court proceedings for a County Court Judgment (CCJ).
- Seek High Court enforcement (if applicable).
- Apply for a freezing order if assets may be moved.
- Consider winding-up or bankruptcy proceedings.
Key Takeaways #
- Act FAST – The sooner you take action, the better your recovery chances.
- Use all contact methods – Calls, emails, legal letters, and visits.
- Issue formal legal threats – Statutory Demands and CCJ applications work.
- Freeze assets if necessary – Freezing orders can prevent money disappearing.
- Don’t wait too long – Delay weakens your legal position.
Speed and strategy are critical – take decisive action now!