If your business is carrying too much debt then it can put a strain on the company and affect the kinds of decisions you can make about expansion and business development.
But, according to Nick Carter at the Wilkes Partnership, many people are reluctant to ‘go legal’ with their debtors because they fear that the debt recovered will be swallowed up by excessive legal fees and it will take up too much of their already overstretched time with no end in sight.
“This means that they put off coming to see us so that by the time they do it is harder to resolve and can be more expensive,” he says.
“People do not realise that good litigation lawyers actually see litigation as a last resort and will make every effort to recover the debt via communication, mediation and negotiation before instigating court proceedings. And if litigation is unavoidable, then you will have the right sort of advice in place should it need to go further. But in reality around only one in twenty cases go all the way through the court system.
“More importantly if the debt is higher than £10,000 the legal fees can usually be claimed from the debtor when the case has been finalised.
“If you are chasing smaller debts of up to £10,000 where you cannot normally recover the legal costs then there are less costly options for legal support that make the process worthwhile.”
If debt is causing you concern then an initial consultation with a litigation lawyer will go a long way to putting your mind at rest. If you would like to speak to someone about your own situation then please contact Nick Carter at The Wilkes Partnership on 0121 733 8000 or [email protected].