Recovering book debts on behalf of insolvent businesses involves an added level of complexity. There may be clauses in contracts with the debtors that allow the contract to be terminated when the business becomes insolvent meaning that the debt claim will involve the quantification of cross claims that arise from the debtor. Often witnesses may not be willing or readily contactable and there may not be the documentation required to support the claim.  Our lawyers work closely with clients to gather evidence, if necessary by using powers under the Insolvency Act 1986 in order to interview witnesses and/or recover documents.

Our Debt Recovery Team is managed by solicitors but we make extensive use of debt recovery paralegals to ensure that the processing element of the work is carried out efficiently and at minimal cost. We can accept instructions of all values and complexities from a one off individual debt to the entire sales ledgers of companies placed in any form of insolvency.

Where proceedings are bought for the recovery of an unpaid debt, a debtor may make a tactical application for security for costs. In such circumstances we work quickly to either obtain summary judgment or secure after the event insurance so that the claim can proceed to trial without risking funds destined for distribution to creditors.

Our experience includes:-

• Acting for a company in liquidation in connection with various claims for unpaid invoices for air conditioning products sold and delivered;
• Acting for a company in administration in the collection of book debts from over 180 debtor restaurants for fish sold and delivered;
• Acting for a landscaping company in liquidation in connection with the collection of its book debts.

Call Luke Harrison on 01727 735639 (DDI) or email lth@dolegal.co.uk