This document summarizes debt collection procedures in the UK. It discusses pre-action steps like debtor searches and pre-action letters. It also outlines procedures for collecting debts from individuals, which involves letter before claim, statutory demands, and bankruptcy petitions. Procedures for collecting from limited companies are also summarized, such as statutory demands, winding up petitions, and liquidator appointment. The conclusions recommend securing debts through reservations of title, guarantees, and specialist legal help.

1. Debt collection - introduction
WLN Krakow Conference – 3 April 2009
Sanjive Haldankar LLB LLM
Solicitor and Partner
www.europeanbusinesslawyers.com

2. Overview
• Pre-action
– Debtor searches / creditworthiness
– Pre-action letter (Court rules on costs)
• Collecting from individuals
• Collecting from limited companies / corporations
• Statutory demand
• Conclusions

3. Collecting from individuals
• Letter before claim
• Statutory demand – creature of common law
• Non payment of a debt of £750 or more
• Failure to satsify execution of a judgment (overlap
with Court proceedings – see below)
• Time limits for insolvency route
• Bankruptcy petition – advantage speed
• Court proceedings – disadvantage slow process

4. Collecting from
limited companies / corporations
• Letter before claim – not dissimilar to individuals
• Statutory demand – creature of common law
• Time limits for statutory demands
• Winding up petition
• Advertising of petition – London Gazette –
consequences
• Appointment of liquidator
• Collection of assets – preferential creditors and all
other ordinar creditors

5. Conclusions
• Avoidance of debt collection
• Security – reservation of title
• Personal guarantees
• Get specialist help from local legal experts –
Members of WLN
Sanjive Haldankar
Solicitor
Partner LLB LLM

6. Conclusions
• Avoidance of debt collection
• Security – reservation of title
• Personal guarantees
• Get specialist help from local legal experts –
Members of WLN
Sanjive Haldankar
Solicitor
Partner LLB LLM