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The Lifecycle of Debt Recovery: What Businesses Need to Know
Jonathan Berkson
When a customer or client fails to pay, it can disrupt cash flow and create unnecessary stress for your business. At Bermans, our Creditor Services team specialises in guiding businesses through the debt recovery process efficiently and professionally. Here’s a clear breakdown of the debt recovery lifecycle—and how we help you navigate each stage.
- Pre-Action Stage: Early Intervention Matters
The journey begins with a Letter Before Action (LBA)—a formal notice sent to the debtor outlining the amount owed and requesting payment within a set timeframe. This step often prompts resolution without the need for court proceedings. Bermans ensures LBAs are legally sound and strategically worded to maximise impact.
- Issuing Court Proceedings
If the debtor fails to respond, the next step is issuing a County Court Claim. This formal legal action seeks a judgment for the outstanding debt. Bermans handles all aspects of claim preparation and submission, ensuring accuracy and compliance with court protocols.
- Obtaining Judgment
Once the court grants a County Court Judgment (CCJ), the debtor is legally obliged to pay. A CCJ strengthens your position and opens the door to enforcement options. Bermans monitors deadlines and ensures judgments are registered and enforced promptly.
- Enforcement Options
If payment is still not made, Bermans advises on the most effective enforcement method, including:
- High Court Enforcement Officers (HCEOs)
- Charging Orders
- Third Party Debt Orders
- Attachment of Earnings Orders
Each option is tailored to the debtor’s circumstances, ensuring the best chance of recovery.
- Insolvency Proceedings
In cases of persistent non-payment, Bermans can initiate bankruptcy or winding-up petitions. These are powerful tools that demonstrate your seriousness and often lead to swift resolution or settlement.
Why Choose Bermans for Debt Recovery?
Our team combines legal expertise with a commercial mindset. We offer transparent pricing, regular updates, and access to our Client Portal—giving you full visibility of your case 24/7.
Whether you’re recovering a single debt or managing a portfolio, Bermans is here to protect your interests and get results.
Please contact Jonathan Berkson, Head of Creditor Services, for more information.