Debt Collection Process

Depending on the nature of the debt and the debtor, sometimes it is necessary to go down a legal path in order to successfully recover a debt. There are various methods available and knowing the right one to take at the right time can reduce stress and limit costs.
Here at AR Legal we can advise on legal options within debt recovery and work with our clients at every step. Some of the more common options available are;

Statutory demands

For personal insolvency – bankruptcy – the first step is to serve of a statutory demand; a written notice in a prescribed form demanding payment of a debt.
The demand has to be personally served on the debtor by a process server. The debtor then has 21 days to either to come to an arrangement with the creditor, to apply to court to have the demand set aside. A non-response will leave them open to a bankruptcy petition being issued against them.
So, being served with a statutory demand will increase pressure on the debtor and is a very effective method to recover a debt at an early stage.


Should payment not be received as a result of the statutory demand, bankruptcy can be an extremely effective means of recovering debts of more than £5,000 for creditors who want a quick recovery of what’s owed.

The creditor has the option to follow through with a bankruptcy petition through the debtor’s local court. A court date is set when the petition is issued, as well as a deadline for possible bankruptcy.
Being declared bankrupt would result in all the debtor’s assets being transferred to a trustee in bankruptcy, a ban on company directorships and the inevitable effects on his credit record.

Creditors can legitimately be concerned that County Court proceedings will be slow and expensive, leading them to turn to the insolvency regime to apply pressure. An insolvency regime applies in different forms to debtor companies and individuals.

High Court Enforcement (Sheriffs)

In the event that a County Court judgement needs to go further, once a judgement is secured our solicitors will appoint High Court Enforcement who will then transfer the debt to the High Court and use their best effort to enforce the judgement with their power to attend Debtors premises and seize goods.
In the majority of cases, this power leads the Debtor towards a financial arrangement in which the debt is paid through the Sheriff.

How we can help

Working with our external specialist partners we can:

  • arrange for a personal service by a process server in the serving of a statutory demand,
  • Instruct our solicitors with the preparation and issue of a bankruptcy petition,
  • manage negotiations and mediation with the debtor on your behalf, seeking to obtain payment of the debt before the bankruptcy hearing,
  • undertake research on the debtor’s assets – for example, through title searches on property, and
  • ascertain, as far as possible, if there is a good chance of recovery of your costs and at least some of the debt.

Contact Us

For more information, free initial advice or a general discussion, please get in touch either by
Phone: +44 (0)20 8202 0730

Our “no collection, no fee” service allows you to employ our services without exposure to expensive legal costs.

We will not ask for any upfront fees, so you only get charged when we are successful.