Leonard Kasler & Company
Debt Collection
(20 Things to Know)
1. If there will be no dispute and the debtor is just delaying, we will need copies of your invoices
2. If the Debtor does not think he should pay, we will need all correspondence and a statement from you as to the position
3. Get the correct legal name of the Debtor. Distinguish whether the Debtor is a Sole Trader, Partnership or a Limited Company.
4. A Sole Trader is a single person albeit trading under a trading name e.g. "John Smith trading as Smith Stores"
5. A Partnership is where 2 or more people work together, possibly with a trading name e.g. "John Smith and John Brown trading as Smith's Stores"
6. A Limited Company is a separate legal entity distinct from its Directors and Members. It will be registered at Companies House and usually has the word "Limited" or "Plc" at the end of its name. Again it may have a trading name e.g. "Smith Enterprises Ltd trading as Smith Stores"
7. If we sue in the wrong way, it will cost time and money to start over again
8. You can pursue either of two courses of action - Bankruptcy or County Court proceedings
9. There is no point in starting either and wasting money, unless one of the following enforcement methods is likely to bring you in the debt
Bankruptcy
10. If the Debtor is an individual, the debt is undisputed and is over £750, then you can serve a Statutory Demand giving him about 3 weeks to pay and if he does not do so, you can make him bankrupt
11. The threat of bankruptcy is quite a potent threat to someone, who has money but is
just messing you around. 
Bankrupts are not allowed to be
Company directors, borrow money, have a credit card , will probably lose their house and
lose control over their financial affairs
12. The threat of bankruptcy is not much of a threat to someone, who has no assets.
13. A Trustee in Bankruptcy is appointed to administer the Debtor’s affairs and deal with all his creditors in a prescribed way. You rank with all the other unsecured creditors and may get paid out only so many pence in the pound
County Court proceedings
14. You sue the Debtor, giving him the chance to defend but with you, hopefully, getting judgment.
15. You must use this procedure if there is any indication of a Defence, even if you think it totally spurious
16. After getting judgment you can request an oral examination to enable you to decide on which of the following methods of enforcement is most likely to bring in the debt
17. Attachment of earnings - an Order to the Debtor’s employer requiring him to deduct a certain amount from each pay packet and pay it over to you
18. Levying execution - sending in the bailiffs to remove goods and sell them
19. Garnishee - freezing his bank account
20. Charging order. This is akin to getting a mortgage on property
Michael Breeze
Leoanrd Kasler & Company
Sunday, 13. October 2002