Mini Case Study: Debt Recovery
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The problem
The client was owed a total of £18,000 and needed help recovering the money from another business.
The background
Mr X owns a construction firm, and he contracted out his workers to another construction company (the debtor), who had agreed to pay a daily rate for those workers.
The debtor company signed off the workers’ timesheets but then decided not to pay Mr X, stating that there was a dispute over how much work the workers did whilst on site.
In retrospect, they had decided that the timesheets should not actually have been signed off, but they were. Mr X was able to rely on the fact that the timesheets were signed off and therefore it was clear that a contract had been formed and the debtor was obliged to pay.
The Solution
Mr X instructed Legal Peace to write a letter of claim. This was drafted it within 48 hours and sent to the debtor.
The outcome
The debtor responded the following day and a conversation followed between Legal Peace and debtor. Legal Peace insisted that the money be repaid with all legal costs and any interest incurred.
The debtor agreed to a three month instalment.
The first instalment was paid within a week and Legal Peace will continue to monitor the situation for Mr X until the third instalment is paid in January 2023.
What happens if the other instalments are not paid?
If the debtor still refuses to pay, then Legal Peace will issue court proceedings on behalf of Mr X.
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