I have a client (soon to be ex client) who owes me about £1000 split over three companies going bakc to June 2010. He has now stopped returning calls, emails and letters so I am going to have to look to legal means to try to get my money.
My question is, has anybody used the HMCS online services www.hmcourts-service.gov.uk and if so is it easy to use and get your money or would you recommend a debt collection agency and if so which one.
Not sure if this will get your client to pay up but it is a free solicitors letter that I have used a few times. Think they do debt collection as well but the letter is free with no obligations. Might be worth a try to see if it scares your client into paying without having any debt chasing costs.
You can get a court judgment (the online thing meant to be straight forward) what will say they owe you the money but if they don't pay, you will have to get another called something like enforcement order (if I remember well). Saying that if they are Ltd with the intention of carry on trading they should take court orders serious... Your client must have a reason for not paying what probably is no money. I would try to get to some sort of agreement of payment in instalments (properly scheduled), try to spread it for over an acceptable period but in amounts what should not be difficult to them to pay. You even could try to give a little bit of discount for paying the debt off. You can go down the route of HMCS, debt collectors,etc. but it will cost you money.
From having done the books for nearly a year I know that the company has the funds in the bank.
At first I was told that he would sort it out and then nothing, I have offered installments but that along with all other offers has been ignored. So this is why I am asking for advice and recommendations on whether to use HMCS or collection agency. I know that either option will cost but I am not prepared to write off over £1000
If that's the case I would go down the HMCS route. Court judgments can affect the future of an Ltd, all judgments would be public and would effect their credit rating with suppliers,banks,etc so they should take it serious. As I said before if there is a judgment against them and still don't pay, you would have to get an enforcement order but that should be straight forward. If you file a claim against them they will get a letter from HMCS they have to respond and they still can pay without getting a judgment so I would go for it.
The HMCS service is great and easy to use. If they do not reply to the claim you can get judgement straight away and go get your money. As its under £5k you can use the bailiffs to go recover your money.
However if they put in a reply to say they do not owe the money, then it will cost to get infront of a judge to sort out.
Either way, attention to detail on the forms is very important as if wrong it will delays things greatly. I would send a letter first to say if not paid by such and such a date, you will take legal action without warning. But when you take action I would send a letter to say so - looks good for the courts. Also make sure you have good paperwork to say they owe you the money.....this is where many people come unstuck.
