Commercial debt recovery lawyers
Our expert commercial debt recovery team provides practical, effective, and legally robust solutions to help businesses recover outstanding debts while protecting commercial relationships and managing risk.
Helping businesses recover outstanding debts through strategic and effective recovery solutions.
Unpaid invoices, overdue payments, and contractual defaults can have a serious impact on a business’s cash flow, operations, and growth. Recovering debt efficiently, quickly and cost-effectively is essential to safeguarding your company’s financial stability.
At Boyes Turner, our debt recovery team specialise in advising businesses on all aspects of commercial debt recovery. We combine expertise in dispute resolution, commercial law, and cross-border matters to provide strategic, practical advice that protects your interests and maximises recovery.
Proven track record of successfully recovering debts for businesses, from straightforward claims to more complex disputes.
Experienced at handling complex, high value claims including disputed debts and those with an overseas element.
Expert early intervention to maximise recovery prospects.
Experience preserving valuable customer relationships where possible.
Commercial debt recovery services
Our commercial debt recovery lawyers provide a full range of services to help companies recover outstanding debts efficiently, professionally, and in compliance with UK law.
Letters before action
We assist clients at an early stage to seek to recover debts without needing to issue court proceedings. We send letters before action complying with relevant requirements and can take steps to trace debtors where needed.
Court Proceedings
When pre-action correspondence is not successful, we manage formal debt recovery through court proceedings. We guide clients through the process including dealing with disputes where they arise.
Insolvency action
Our team guides clients through insolvency processes where appropriate including service of statutory demands and issuing bankruptcy petitions and winding up petitions. We are also able to liaise with insolvency practitioners post-insolvency to support clients with proofs of debt.
Payment agreements
We advise on structured payment arrangements, monitor instalments, chase defaults, and conduct regular instalment assessments to ensure compliance with agreed repayment plans.
Cross border debt recovery
For businesses dealing with international clients or overseas debtors, we provide guidance on the options available. Where necessary, we coordinate with foreign lawyers to enforce English judgments overseas. We are also able to assist with the enforcement of foreign judgments in the English courts.
Dispute resolution
Where disputes arise over debts, we provide support and strategic advice to help businesses resolve matters effectively including advising on negotiation options.
Debt recovery FAQs
What is the debt recovery process?
Our debt recovery process provides businesses with a clear and legally compliant route to recovering outstanding payments efficiently and professionally.
- Initial debt recovery review
We begin by assessing the debt, reviewing supporting documentation, and advising on the strength of your claim. This ensures compliance with the relevant Pre-Action Protocols and helps determine the most effective recovery strategy. - Pre-legal action
Where possible, we seek payment without court proceedings. Our solicitors issue a Letter Before Action (LBA) and, where appropriate, follow up through negotiation or telephone contact to encourage early settlement. - Legal proceedings
If payment is not forthcoming, we can issue court proceedings on your behalf. We handle all aspects of the claim — from issuing proceedings to representing your business in defended matters — ensuring your position is fully protected. - Judgment and enforcement
Once judgment is obtained, we advise on the most appropriate enforcement options, such as instructing High Court Enforcement Officers, charging orders, or winding-up petitions, depending on the debtor’s circumstances. - Insolvency and prevention
Where a debtor is insolvent, we guide you through bankruptcy or winding-up procedures to maximise recovery. We also advise on credit control measures and contract terms to help minimise future debt risks.
When should I instruct a debt recovery solicitor?
You should instruct a debt recovery solicitor as soon as you identify that a business customer or client has failed to pay an invoice or debt on time. Early involvement of a solicitor can significantly improve your chances of recovering the debt and ensures that any recovery actions are fully compliant with UK law.
Waiting too long to take legal advice can limit your options. For example, delays may complicate tracing the debtor, reduce the likelihood of successful enforcement, or create risks if the debtor becomes insolvent.
What are Letters Before Action (LBAs)?
A Letter Before Action (LBA) is a formal legal letter sent to a debtor before court proceedings. It sets out the debt owed, the legal basis for the claim, and a deadline for payment. LBAs encourage early settlement, demonstrate compliance with the Pre-Action Protocol for Debt Claims, and create a clear record of your attempts to resolve the matter – all of which help protect your business if legal action becomes necessary.
What legal action can be taken if a debtor does not pay?
If a debtor fails to pay despite pre-legal action, your business can pursue formal legal remedies. These include:
- Court proceedings: We can issue County Court or High Court claims to formally recover the debt. We handle all aspects of the litigation, including defended claims and negotiations.
- Enforcement action: Once a judgment is obtained, we can advise on the most effective enforcement methods, such as instructing High Court Enforcement Officers, applying for charging orders, third-party debt orders, or attachment of earnings.
- Settlement or mediation: Even during proceedings, we can negotiate structured payment plans or use mediation to reach a commercially acceptable resolution.
- Insolvency action: If the debtor is insolvent, options include bankruptcy petitions, winding-up petitions, or liaising with insolvency practitioners to recover available assets.
What if the debtor is insolvent?
If a debtor is insolvent or enters administration, recovering the full debt can become more complex, but there are still legal options available to protect your business interests.
For insolvent individuals, we can advise on:
- Bankruptcy petitions to recover available assets.
- Individual Voluntary Arrangements (IVAs), negotiating repayment plans with the debtor and monitoring compliance.
For insolvent companies, we can assist with:
- Winding-up petitions to liquidate the company and recover funds.
- Company Voluntary Arrangements (CVAs) to establish structured repayment plans.
- Engagement with administrators or insolvency practitioners to identify and recover any available assets.
In these situations, our solicitors help you understand your rights as a creditor, submit claims properly, and explore all avenues to maximise recovery. Early legal involvement is crucial, as delays can reduce the likelihood of recovering funds.
How long does the debt recovery process take?
The length of the debt recovery process varies depending on the complexity of the debt, the debtor’s response, and the actions required. In general:
- Pre-legal recovery: If the debtor responds promptly, debts can sometimes be recovered within a few weeks through letters, negotiation, or structured payment agreements.
- Court proceedings: If formal legal action is necessary, issuing a County Court or High Court claim can take several weeks to months. Defended claims or complex disputes may extend the process further.
- Enforcement: Once a judgment is obtained, enforcement actions such as instructing High Court Enforcement Officers, applying for charging orders, or pursuing insolvency remedies can take additional time, depending on the debtor’s circumstances.
- Insolvency cases: Recovery from an insolvent debtor can be longer and less predictable, as it depends on the availability of assets and the progress of bankruptcy, administration, or liquidation proceedings.
What are the costs involved with business debt recovery?
The costs of business debt recovery can vary depending on several factors, including the complexity of the case, whether the debt is contested, and the stage at which recovery is pursued.
Costs can sometimes be recovered from the debtor if the matter proceeds to court, but this depends on the circumstances and whether judgment is obtained. In other cases, the client is responsible for paying fees and disbursements regardless of recovery. We explain the likely costs and payment arrangements at the outset, so there are no surprises.
Legal fees: Boyes Turner’s debt recovery fees depend on the individual case. Simple uncontested debts can often be resolved more quickly and cost-effectively using a fixed fee option, whereas defended or disputed claims may involve additional work such as drafting pleadings, attending hearings, or negotiating settlements. We will provide clear, tailored estimates of our legal fees once we understand the specifics of your case. We will also engage with you during, so you are made aware of any additional fees in advance.
Disbursements: In addition to legal fees, there are disbursements. These are costs payable to third parties on your behalf. These may include court fees, fees for enforcement officers, tracing or investigation costs, or charges for insolvency proceedings.
By engaging a solicitor early, you gain clarity on the likely costs, the potential for recovering them from the debtor, and a strategy that balances effectiveness with cost-efficiency.
Fees
These fees apply to uncontested debt recovery for businesses up to the value of £100,000.
Demand letter
The first step is to issue a demand letter to the debtor, at a fee of £40 + VAT for claims up to £49,999 and calculated at 1% of the debt for claims over £50,000. This fee includes taking instructions, sending a letter before action and paying the outstanding debt to you when proceeds are received. In many cases, this is the only action required to secure payment, allowing the matter to be resolved swiftly and at a very low cost.
Statutory demand
As an alternative to a demand letter and court action, it is possible to serve a Statutory Demand – a formal demand which is personally served and demands payment within a 21 day period. If the debt is not paid, insolvency proceedings may be initiated that could result in bankruptcy or, liquidation of a company. The fee for issuing a Statutory Demand is £230 + VAT, plus a process server’s fee ranging from £140 to £250 + VAT.
Court action
If payment is not received within the specified period, we can commence court proceedings against the debtor, at a cost of £150+ VAT, plus a court fee.
Our fee for obtaining a County Court Judgment (CCJ) against the debtor if no defence is received within 14 days of service of the claim (or 28 days if an acknowledgement of service is filed) varies between £22 and £55 depending on the size of the debt.
The court issue fee is recoverable and varies depending on the size of the debt claimed – court fee details. Court action generally acts as a very strong incentive for debtors to make payment if they wish to avoid a CCJ being entered against them. The debtor will also be liable for fixed costs on issue of the claim ranging from £50 to £100 in accordance with the Civil Procedure Rules (CPR) which we shall invoice to you on entry of a defence or entry of judgment.
Corporate clients are entitled to claim late payment interest and late payment collection costs ranging from £40 to £100 in accordance with the Late Payment of Commercial Debts (Interest) Act 1998. Where we recover the late payment collection costs we shall also invoice you for this amount as part of our fee.
If the debt is disputed, we will discuss and agree a strategy with our client and provide up-front information about additional charges which will usually be based upon our hourly rates and which range from £200 to £450 per hour plus VAT.
Recovery of an undisputed debt typically takes between 7 and 30 days, assuming that the debtor pays on receipt of either the demand letter or the court order. If payment is still not made, enforcement action will need to be taken to compel payment. We will advise on the most appropriate course of action and confirm details of next steps and fixed fees.
Our standard fixed costs can only be claimed from the debtor where there is a clause in the terms and conditions of your contract with the debtor which entitles you to recover third-party/legal fees.
If you don’t have an agreement, you can only recover a proportion of your fees, linked to the size of the debt. We can advise you about the amount you are entitled to recover when you instruct us.
Anyone considering a claim should be aware that:
- Court fees may increase if interest and/or fixed compensation charges take the debt into a higher band
- If the matter becomes defended, or enforcement is required, additional costs will arise.
- The VAT element of our fees cannot usually be recovered from the debtor.
- Court fees are generally not subject to VAT
- Most other third party fees (e.g. process servers and counsel) are subject to VAT at 20%.
Contact us
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Why use debt recovery solicitors?
Specialist expertise in commercial debt recovery
Our dispute resolution solicitors have extensive experience handling all types of commercial debt disputes, including complex, high-value, and cross-border matters. We combine legal knowledge with practical commercial awareness to deliver effective outcomes.
International and cross-border capability
Many businesses operate globally. We provide guidance on recovering debts across multiple jurisdictions, coordinating with overseas counsel, and ensuring compliance with both UK and international law to maximise recovery.
Tailored, strategic solutions
We recognise that each business has unique commercial needs. Our team works closely with clients to assess risk, develop bespoke recovery strategies, and provide guidance on whether negotiation, alternative dispute resolution, or litigation is the most effective approach.
Full-service, leading law firm
Boyes Turner is ranked as a leading law firm by Chambers UK and The Legal 500. Our debt recovery work is fully integrated with our expertise in corporate, commercial, employment, property, and insolvency law, allowing us to provide a holistic approach that protects and advances your wider business interests.
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