Debt Collection or Small Claims court 2023
Debt Collection or small claims court?
Debt collection or small claims court procedures is a question many have faced. Both are technically viable methods of recovering unpaid debts in the United Kingdom. However, debt collection is typically the more cost-effective route to pursue. In this article, we will explore why debt collection is often the preferred solution when seeking to recover unpaid debts.
A more cost effective option
First and foremost, debt collection can be a much more cost-effective option for collecting an outstanding amount of money. This is because it eliminates many fees associated with going to court such as court fees, lawyer fees and other expenses related to filing paperwork.
Furthermore, due to its streamlined procedure, debt collection can be completed faster than going through the courts. This saves time, energy and money which could otherwise be spent on costly court proceedings.
More flexible options for recovery
Another advantage of debt collection is that it allows creditors to take advantage of various tactics that are not available through the courts such as negotiation and payment plans. Negotiating with debtors can help creditors collect money without having to resort to costly legal action.
Similarly, setting up payment plans can also help creditors recover their money without taking any drastic measures or spending large sums of cash on lawyers or court cases.
In addition, debt collectors have access to a range of established techniques and strategies which they can use to successfully retrieve an unpaid sum from a debtor’s bank account or other assets with minimum risk or disruption to daily life.
Maximise a successful debt collection
Whilst the small claims procedure may seem appealing at first glance, it cannot guarantee a successful result in every case. On the other hand, professional debt collectors are experienced professionals who know how best to handle each individual case.
Professional Debt Collection Agencies also have access to various resources that allow them to maximize their chances of a successful resolution for their clients.
In short, although small claims proceedings may sometimes appear less expensive up front this is rarely the case. There can be additional fees to pay not to mention legal costs. Professional debt collectors provide sound advice and services that may ultimately save both time and money in the long run.
This is done by providing an effective way for creditors to both minimise risk and maximise success when recovering outstanding amounts from unpaid debts in the UK.
Already got a CCJ?
If you have already obtained a CCJ then you are likely to need the services of a Professional Debt Collector regardless. This is why many choose to come straight to a suitable debt collection agency. It prevents incurring expensive court fees and legal costs. At Frontline Collections, less than 1% of the cases we deal with actually require small claims court action.
But as stated, if you have an unpaid CCJ, there are many options available to you. There are a variety of different CCJ enforcement options that can be utilised. The most appropriate will depend on the debtors circumstances. You will need to integrate this into your decision making process.
Choosing the wrong enforcement method to collect an unpaid CCJ will just add more costs to your bill.
It is critical that you do your homework before going down any path associated with CCJ enforcement. Does the debtor have assets? What is their job role? Is bankruptcy a potential option? Does the debtor own property? Is the debt exempt by the statute of limitations?
These are just a few of the questions our Debt Collection experts would ask before proceeding. Knowledge is a very powerful tool when it comes to collecting an unpaid CCJ.
Speak to an expert: Debt Collection or Small claims court?
If you have unpaid debts owing to you and want your money back, speak to our friendly team of experts today. If you are wondering ‘debt collection or small claims court’ then you might just like what we have to offer. We provide a free assessment of your situation and can advise on the best realistic course of action therein.