Why is Time so Important in Debt Recovery?
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We all know time is of the essence when it comes to chasing debts, but why? This blog will look into the main reasons.


First of all, it’s a simple fact that the sooner you chase for payment, the less chance your debtor has of simply wriggling out of what they owe you.

The facts are fresh in everybody’s mind, it’s easier to show that you haven’t already received the funds, and any paperwork relating to the debt is likely to still be close to hand.

On top of that, the individual you are dealing with is less likely to have moved positions within the company, or left to work in a different job entirely.

In the worst cases, the entire company or sole trader you are dealing with might disappear – tracing can help find them again, but if they have been declared insolvent it might be impossible to pursue them for payment.

Then there are the unavoidable obstacles, such as increases in court fees for chasing debts; if you’re unlucky enough for fees to change before you embark on your action, the sad truth is that they are only likely to rise, and not fall.

Finally there’s the hard deadline on debt recovery action, usually six years (with exceptions for some mortgage debts and for CCJs).

In Scotland it’s five years, and in any case it starts from the last time the debt was acknowledged, for example the last time a part-payment was made – and not the first date on which it became due.

Once this time period has elapsed without action, the debt is statute-barred (or time-barred, in simpler terms) and you cannot claim it back.

So just like time itself, the reasons why it is important keep coming, one by one, over and over, until they stack up into a very compelling reason why you should take action sooner, rather than later.

To talk to a member of our team call 0808 163 7967.

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