Is This the Time for a Full Review of Debt Options?

The options open for people who fall into debt have needed reform for some time, but the Covid-19 pandemic has made the issue urgent. The Money Advice Trust has now published a new briefing, urging the government to commission a full review of the options for debt management. The Debt Crisis The need for review of debt options was already being urged before this year. In 2018, the Money Advice Service (now part of th
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Can Bailiffs Charge VAT on Enforcing High Court Judgements?

The cost of recovering debts through High Court Enforcement can be substantial — although considerably less than writing off the debt. However, there’s general confusion about one element — VAT. Should it be paid by the creditor, the debtor or not at all? Why Would You Use High Court Enforcement Officers? If you’ve received a court judgement in your favour for a debt that you’re owed but the debtor doesn’t immediatel
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When Is a Penalty not a Penalty? — Are You Offside when Claiming Interest?

When you’re signing a commercial contract with a partner, you may find it includes a penalty clause. Or possibly you’ve included one in a contract you’ve drawn up. This is, in essence, a clause which states that a specific sum is payable in the event of a specific failure, such as late delivery of materials or services, or late payment of an invoice. Liquidated and Unliquidated Damages Penalty clauses have a contenti
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Dealing with Bailiffs

Bailiffs have traditionally struck fear into people. In the popular imagination, they’re irresistible forces that have the power to strip you of all your possessions. In reality, though, your attitude to bailiffs will depend largely on whether you’re a debtor or a creditor. Using a Bailiff If you’re owed money by a customer or tenant, there are many possible actions for recovering the debt. Most of these involve comm
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Earlier this year, Justice Secretary Michael Gove announced that planned cuts to the legal aid system were to be shelved. This was some relief to both the legal profession and to people facing substantial bills for court cases, but it didn’t reverse the swingeing cuts brought in three years ago. What Is Legal Aid? It’s a basic principle of our legal system that justice should be available to everyone, but it usen’t t
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What can’t you do online in 2015? Pay your bills (check), do the weekly shop (check), book a holiday (check), find romance (check, if you’re lucky!). But try settling a small dispute with another business and you’ll find that there is no simple form to complete on the laptop or smartphone during a few snatched minutes of downtime. Instead you will need to enter the antiquated – and often lengthy and confusing – world
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When should debt become a legal matter?

There comes a time, when dealing with unpaid accounts from a client, when a business has to consider taking legal action to recover the debt. If you have a longstanding legal relationship with a firm of solicitors, they can probably advise you when that point has been reached. But for most small firms, there is a balancing act to be performed. Luckily, going legal does not necessarily mean launching court action. As
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A tax on justice for small firms trying to recover debts

The government’s enthusiasm for making public spending savings has resulted in an accusation from the Law Society, the body representing solicitors, that proposed increases in some court fees of up to 600% amount to ‘selling justice’. The proposals from the Ministry of Justice, reports CCR Magazine, mean that fees for claims from £1 to £9,999 are unchanged; from £10,000 to £199,999 are 5% of the claim; and are fixed
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