Debt Recovery

Need expert advice on debt recovery and insolvency?

MKB Law’s Debt Recovery and Insolvency team provide volume debt recovery for a range of clients throughout the UK, notably finance houses, commercial clients and individual clients. We deal with all legal matters relating to debt recovery, debt litigation, insolvency, bankruptcy and credit control.

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Why choose MKB Law?

Debt Recovery & Insolvency Experts

Our expert team are regarded as one of the principal debt recovery and litigation solicitors in Belfast and Northern Ireland.

Specialist Sector Knowledge

Our experts tutor at the IPLS at Queens University Belfast, and author material on the debt recovery and insolvency process.

Discretion Assured

Clients can be assured of complete confidentiality and discretion throughout their debt recovery or insolvency matter.

Client Feedback

Clients commend our team on their prompt, efficient service and their ability to resolve complex disputes.

How we can help you

Our lawyers offer a complete service for clients concerning all debt and insolvency matters:

We provide a range of dedicated services within the area of debt recovery, specifically: solicitors’ letters before action, telephone collections, asset recovery, recovery of arrears and legal proceedings (Small Claims Arbitration Court, County and High Courts).

Insolvency Action

We work with clients to ensure prompt insolvency action in relation to statutory demands applicable to individual debtors, corporate debtors and partnerships. We have also commenced insolvency proceedings in Scotland and England with notable success.

Bankruptcy

Following the expiration of a Statutory Demand, a Winding-up Petition or Petition for Bankruptcy is drafted and served. Similarly, if you are in a position whereby this has been served on you and you wish to dispute this, we can discuss the options available to you.

Need expert legal advice on debt recovery and insolvency?

CONTACT A LAWYER

Meet the experts

Find out more about our professional and approachable team:

David McAlinden

David oversees the department and specialises in insolvency, commercial litigation, debt recovery and Chancery work. He is qualified to practise as a solicitor in multiple jurisdictions.

David sits on the Remuneration Panel of the Law Society of Northern Ireland.

Billy Muir

Billy advises both commercial and individual clients in relation to various insolvency, debt recovery and litigation issues.

Billy also assists with a wide range of matters before the High Court and County Court.

Ruairi Maguire

Ruairi works alongside David and the Debt Recovery and Insolvency team at MKB Law.

Ruairi supports the team in assisting both commercial and individual clients in relation to a range of insolvency, debt recovery and litigation issues.

What our clients say

“David McAlinden and his team have been successfully collecting debts due to our Group for many years now. Quite simply they do what they say they will and get the job done. Their no nonsense approach is combined with experience, commerciality and straight talking. They won’t waste my time or go through the motions, they just go ahead and do what needs done.”

Paul Taylor – Lynas Foods

“Truesearch Ltd has worked with David McAlinden and his team for a number of years now and have always found them to be professional, diligent, helpful and honest in relation to the valuable work that they do. Debt recovery, in many occasions, requires to be left with the professionals and I can think of no better team than MKB Law to assist in the recovery process.”

Ray Morgan – Truesearch Ltd

“Fane Valley would like to thank MKB Law’s Debt team for their excellent work in recovering outstanding debt from various customers. They are always contactable and helpful, and make things as simple for me as they possibly can. The whole process from start to finish is efficient and the professionalism applied to these matters is greatly appreciated and very impressive.”

John Letters – Fane Valley

Have questions about debt recovery or insolvency?

I need help with recovering debt, what should I do first?

We offer a range of dedicated services within the area of debt recovery, specifically: solicitors’ letters before action, telephone collections, asset recovery, recovery of arrears and ejectment proceedings on behalf of landlords. Types of debt action we provide are:

Letter Before Action/Seven Day Letter – this is the standard route to resolve disputes and is sent prior to commencing legal action. An Enforcement of Judgments Office search will also be used to ascertain any judgment lodged within the last 6 years.
Legal Proceedings – Small Claims Arbitration Court (debts up to £3,000), County Court (debts up to £30,000) and High Court all level of debt ).
Default Judgment – an application for default judgment is effective where the debtor has failed to either pay or to dispute/defend the action. Such application must be accompanied by a statement of truth (Small Claims) or a sworn affidavit (County or High Court actions).
After Judgment – the EJO may issue orders to attach earnings, direct installment repayments, charge land, seize goods and appoint receivers on thirds parties who may owe monies to the debtor.

How can you help me with insolvency action?

MKB Law provide specialist assistance in this area and works with clients to ensure prompt Insolvency action.

Statutory Demands – first stage of the insolvency process, the liquidated debt limit must exceed £5,000 for individuals and £750 for company liabilities.
Individual Debtors – the format will vary subject to whether the creditor holds a judgment or not. Application is made under the Insolvency Order (NI) and must be for a liquidated amount.
Corporate Debtors – the statutory demand is applicable when the limited company is unable to pay its debts and should therefore be wound up by the Court and placed into liquidation.
Partnerships – the stat demand is applicable when the entity is unable to pay its debts and should therefore be wound up by the Court and placed into liquidation.

The documentation is drafted by the creditor’s solicitor and brought to the attention of the debtor directly. It may also be subject to advertising in the local press. The debtor has 21 days to pay, secure or compound for payment of the liability, and 18 days upon which to apply to the Court for the demand to be set aside.

What is the bankruptcy process?

Following the expiration of a Statutory Demand, a Winding up Petition or Petition for Bankruptcy is drafted by the creditor’s solicitor and must be personally served. In the case of a registered company the Petition must also be advertised. It is considered to be a class action, and in the event of failure to pay, secure or compound, must be processed to conclusion with the debtor’s adjudication in bankruptcy or company liquidation.

Insolvency is a quick and efficient method to obtain an early insolvency hearing and it imposes pressure on a debtor to prioritise payment or to compound with the creditor. The creditor may revert to the judgment route if no payment is derived from the Statutory Demand. The process may open prior fraudulent transactions and the commencement of misfeasance proceedings against debtors. Any subsequent Petition is a matter of public record and may be advertised.

How can I maximise my debt recovery?

During Coronavirus pandemic, many businesses will be struggling to manage cashflow and it is important to remember that when it is needed the debt recovery process forms a crucial part of credit control procedures. One thing that businesses will want to ensure is that they have claimed everything that they are entitled to, not just the principal debt.

For business to business debts under the Late Payment of Commercial Debts (Interest) Act 1998 & 2002 Regulations, businesses may be entitled to claim interest at a rate of 8% above the Bank of England base rate and in addition to that compensation of between £40 and £100 per invoice. One mistake businesses often make is not realising that this late payment compensation may be added to each invoice outstanding.

Businesses have up to 6 years to recover the debt or it may be statute barred. Particularly for the more historic debts within this time limit the interest can be rather substantial. Since 16 March 2013 additional fees can be claimed for costs if the compensation amount does not exceed the “reasonable costs of the supplier in recovering the debt”. It is important to make sure you do not lose out on monies you are legally entitled to.

I have a commercial dispute, how can you help?

Most clients will agree that it is not in their interests to become embroiled in expensive and protracted commercial disputes and court proceedings. Businesses and business relationships can be ruined in that way.

Our Commercial Litigation solicitors will assist you in your specific matter, allowing you to concentrate on what you do best: developing and promoting your businesses. We can help with issues relating to banking, debt and insolvency disputes.

Early dialogue is encouraged, as are alternative means of finding solutions in which the client at all times retains control of cost and outcomes. Where circumstance dictate, however, litigation is pursued using our extensive experience and knowledge of the systems and procedures of the Commercial, Chancery, Queen’s Bench and County Court.

What costs are involved in the debt recovery and insolvency process?

For further information on our full range of services in this area – including fees relating to searches, seven day letters, default judgments, after judgments and statutory demands – please download our brochure.