Debt Recovery – Alternatives to Issuing Proceedings

By George Burton


Debt recovery can be a very frustrating process. To make matters worse, creditors often find that, even when they are owed money, they may not benefit from commencing proceedings as:

  • The debtor does not have enough money to pay the debt; or
  • The time and costs of going to court will likely be disproportionate to the costs involved in pursuing the debt.

Regardless of the reasons, there may be viable alternatives for creditors who seek to recover amounts owed.

Alternative Dispute Resolution (ADR)

There are various options available here but mediation can prove to be particularly effective. The process encourages a dialogue, through a third party mediator, which helps both sides understand the other’s position with a view to reaching an agreement. It is, therefore, worth considering before proceedings are issued.

Payment Plans

This option may be suitable if a debtor cannot pay the entirety of the sum owed immediately, but can do so in monthly instalments over the course of a few months. The parties could enter into an agreement that the debt will be paid by monthly instalments.

Legal Charge

If a debtor does not have the money to pay the debt owed, and will likely not be able to in the near future, an option available to the parties is to agree a charge against the debtor’s property in favour of the creditor which would secure the debt. The precise terms of the charge will need to be agreed before it is registered. The purpose of such a charge is to give the creditor security for the debt.

If you would like to find out more about the different options to recover your debts owed, please contact our Debt Recovery Team on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.