Recovery of Debts via the Courts
10 January 2022
Debt Recovery & Insolvency
Even at the best of times credit control or debt recovery processes are crucial aspects of any successful business. In the current economic climate knowing how to use the Courts effectively to aid those processes is more essential than ever in protecting cash flow.
With current restrictions still in place in Northern Ireland preventing the issue of creditor bankruptcy or winding-up petitions, the option is for Creditors to proceed via the Civil Courts to obtain a Judgement or Court Order and then seek to enforce that via the Enforcement of Judgements Office. For debts less than £30,000.00 legal action can be initiated by way of a Civil Bill in the County Court. For debts above £30,000.00 in value, these can be taken by means of a Writ of Summons in the Commercial Court in the High Court of Justice.
The purpose of this specialised Court is to expedite the progression of commercial actions. A pre-action protocol exists to try and resolve disputes but if that is not successful at that stage the legal action can be included in the Commercial List at the direction of the Judiciary. On inclusion, there will be an Early Directions Hearing whereby, if not agreed between the parties, the Commercial Judge will issue a set of directions. The Court will also sit at regular intervals to progress the case management of the litigation. The result of this is to streamline commercial actions, avoid unnecessary delay and ensure that commercial court users, and the business community as a whole, receive an optimum service.
The Commercial List is an attractive forum for the efficient disposal of disputes arising out of business transactions. Commercial litigation can be lengthy, complex and requires the use of various experts. The Commercial Court by its nature holds an appreciation of the spectrum of commercial litigation and can thus offer prompt understanding and effective remedies.
In uncertain times the commencement of legal proceedings can be the best way of obtaining security of your debt and significantly improving your chances of recovery.
MKB Law will advise on each individual debt to ensure that the most practical method of recovery is used for the particular debt. Please contact our Debt Recovery & Insolvency team who will be happy to discuss the processes available in general or how to recover any specific debts owed to you.