My invoice is not being paid, please help me!
21st May 2020
My invoice is not being paid!
"My invoice is not being paid, please help me."
Regretfully whilst most people are being respectful, some are using the Covid 19 restrictions to avoid debts owed.
The government has amended much legislation to assist business to trade through this period. One of the changes is to the time required to respond to a Statutory Demand from 21 days to 6 months. Thus, a relatively easy lever to have companies to respond to outstanding debts has effectively disappeared. This has been evident in both the government and private sector which has seen applications for Windup applications decrease markedly.
I continue to successfully recover outstanding money starting with a Letter of Demand and if necessary proceed to debt recovery action in the courts. Whilst I always recommend going to court as a last option, I attribute my continuing success to very careful preparation and ensuring as much as possible I have covered all bases that may allow a debtor to defend.
It is very important to show the court the attempts that have been made to settle the debt as courts wish to have matters mediated if insufficient attempts have not been made.
I have found most creditors who are approached promptly, will work with you to enable your business to continue trading. Silence is disrespectful and can lead to court action without notice. My advice is to keep an open conversation with your creditors should conditions appear to be affecting your ability to pay invoices or rent. I have found that the majority of people when they have been contacted at the first available time, are willing to negotiate. I have been involved in negotiations for my clients both debtors and creditors as a result of Covid 19. In the majority of cases the parties have arrived at a suitable arrangement. From my experience delay and silence acts to build walls, inhibiting efforts to negotiate.
If I can be of service to assist you or anyone you know, please contact me.
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