Advice from Rollits on debt recovery

We had a chat with Harriet Kingston, a solicitor in the Dispute Resolution team at Rollits, to find out more about debt recovery and dispute resolution work.

Harriet Kingston specialises in commercial litigation at Rollits and deals with a wide range of general dispute resolution matters to include property disputes, breach of contract claims, probate disputes and disputed debt claims. Due to the difficulties posed by the cost of living crisis, we asked her what people and businesses should know about debt management.

“Contested debt recovery is when an individual or company doesn’t necessarily agree on the amount of debt or interest being charged,” said Harriet. “As well as supporting our clients to navigate this process whether it be through pre-action discussions and negotiations or through a court process, the solicitors at Rollits can also advise on red flags to look out for at an early stage in order to prevent financial matters from reaching this point.”

The dispute resolution and debt recovery experts at Rollits specialise in helping businesses, organisations and individuals who owe money, as well as those who are pursuing debts owed to them. These services cover all bases, ranging from advising on matters before there is an issue and pre-empting potential problems, to taking formal action to recover debts that are either contested or non-contested.

The team also deals with the many situations that can arise as part of the debt recovery process, such as pre-action proceedings, the court process, mediation, arbitration, enforcement of judgements, winding up petitions and debt collection. They also provide advice in relation to the administration process and insolvency proceedings.

Harriet said: “Because of rising costs and the slow economy, many individuals are in difficult positions when it comes to meeting outgoings and making monthly payments. Many companies are also struggling with cash flow situations, which makes it hard to pay bills and commercial rent. Here at Rollits, we can advise on all kinds of situations and help you to resolve issues as smoothly as possible by taking the time to understand our client’s position and to consider both the legal and practical issues.”

Harriet also advised that when considering entering into an agreement with a person or company, you should make sure to carry out due diligence and to take steps to understand the individual’s or company’s financial position. This will allow you address any concerns before an agreement is finalised and make an informed decision as to whether to continue with that agreement.

When it comes to a company, this could include viewing a company’s accounts on the Companies House website for discrepancies or reduced performance indicators, which may give a warning of financial difficulties. You can also run a credit check to analyse their financial standing.

“Make sure you have robust terms and conditions that you can rely on,” added Harriet, “as these can be referred to and used when required. You should also make sure that the parties’ attention is drawn to the specific parts and provisions of these T&Cs, as that will keep everyone on the same page.”

Harriet also explained how Rollits can help with debt recovery: “When we receive an enquiry, we carry out an initial fact-finding call so that we can understand the nature of the query and then provide our thoughts as to the appropriate approach to progress the matter.

“Another important factor to consider at the outset and to continually reevaluate as the matter progresses is what you think you can actually recover. If the individual or company does not have the money to repay you, the time and cost of pursuing the debt may not be worthwhile.  This is where Rollits can support you with pragmatic advice to help you make the right judgment call.”

If you require support regarding debt recovery or dispute resolution, we recommend getting in touch with Rollits to explore your options.