Recommendation of a Solicitor to persue bad debts

[cliff123]

Can anyone please recommend a good solicitor who will be able to advise and then persue a bad debt from a client of ours? We are based in Gosport, so would prefer a solicitor in the more local area (southampton, portsmouth, chichester area etc).

We have completed work for the client as agreed, and they just dont fancy paying now its all complete. Thanks for your advice in advance.

[Pot Bellied Fool]

Using a Solicitor can be a quite expensive way of doing things as not all of them specialise in debt recovery and just farm the work out.

I've used these people www.chamberslegal.co.uk in the past with good results, not based near you but they cover all over the UK I believe.

Good Luck.

[maxed]

Phew...would never use a solicitor to debt collect.
Very expensive.

DIY at the local county court.
Very easy and cheap.
Sure someone will put up a link shortly

[billsnemesis]

I think there is a lot to be said for being able to collect debts yourself but there are two extra issues to take into account (1) success rate and (2) opportunity cost

If using a solicitor/debt collection agency halves your bad debts then factor the extra money you receive into the cost/benefit analysis. It might cost your £5k a year in legal fees but if you are benefitting by reducing your bad debts by £10k it's a no brainer.

If I can charge myself out at £100 per hour I would be foolish to do debt collection myself if I can get an experienced person to do the same work at twice the rate provided they only take half the time.

I have seen companies in the past who used lawyers to chase every debt no matter how small. Over the course of three or four years their average debtor time dropped as well as their bad debts and write offs. I never saw the calculation to see who much things improved but they thought it was good value for money.

[cliff123]

I was under the impression that if I was to do it myself via the county court the sum needed to be under £5k. Though it is today, within 10 days the debtors debt will be considerably more than this. Should I just then make several claims via the courts (seperate different invoices), or do I need to do it another way, ie via a solicitor?)

I'll will be looking into all the avenues of collection and obviously choosing the most cost efficient/effective, and appreciate any advice and experience people can shed on this matter. I'd rather not pay a solicitor a huge fee if I can, but would rather pay them something than the debtor get away scot free.

Such a shame that people and businesses cant just pay their bills as agreed. What a headache this is all going to be.

[billsnemesis]

It sounds like you are thinking of the limit for what is referred to as the small claims court. You can run any action yourself but the bigger it gets the more important it is to have good representation.

The significance of small claims court is that neither sides gets their costs. It gives claimants without the resources to legal representation a fighting chance against a bigger organisation who can afford top gun lawyers.

[jamesuk28]

I run a debt recovery business. The previous poster is correct the fees we charge (a % of the debt recovered less VAT and court costs) may seem high, but is your own time more productive?

We specialise in problem debts. IE those over 3 years old (although we recover any age debt)the time involved is considerable, especially if we have to trace a debtor. Dont forget your court fees are added to the debt, you can charge statutory compensation (not a lot though average £60)and interest on the debt at 8%pa from the due date to Judgement date.

But where a debt recovery agency really pays off is if the debtor fails to comply with the judgement. There are further remedies available to force the debtor to settle.