FAQs

A Letter of Claim is used in certain debt situations (including where a business is claiming against an individual) and must include specific information and enclosures under the Pre-Action Protocol for Debt Claims.

Timescales vary depending on whether the debtor responds, whether the debt is disputed, and whether enforcement is needed. With our Stoke debt recovery team, we’ll advise on likely timings once we understand the amount owed and the debtor’s position, as well as the stage you’re at.

Yes, we can advise on practical next steps and support a trace debt recovery approach, when you need to progress matters using the best available contact details, so you can decide whether to pursue legal action.

If a debtor doesn’t pay after judgment, you can apply to enforce it using different court-approved methods. Our Stoke debt recovery solicitors can advise on the best enforcement route for your situation and take the next steps on your behalf.

Business insolvency is when a company can’t pay its debts when they fall due, or its liabilities outweigh its assets. If you’re unsure, speaking to insolvency solicitors in Stoke-on-Trent early can help you understand your options.

A company may be classed as insolvent under the ‘cash flow’ test (can’t pay debts on time) or the ‘balance sheet’ test (liabilities exceed assets). The right test depends on your circumstances and financial evidence.

As soon as you suspect the company can’t meet its debts, it’s sensible to take advice. Early action can increase the available routes (such as restructuring) and help directors meet their duties.

In broad terms, insolvency can be corporate (a company) or personal (an individual). For companies, common formal routes include administration and liquidation, as well as CVAs (company voluntary arrangements), depending on the goal and financial position.