When a debtor has multiple creditors or is facing insolvency, not all debts are treated equally. Understanding whether your debt is a 'priority' or 'non-priority' is critical. Our expert solicitors can advise on your legal standing and take action to secure your payment.
When a company becomes insolvent, its debts are paid off in a strict legal order. Where your business stands in this hierarchy determines your chances of getting paid.
These are paid first. This includes debts secured by a legal charge, such as bank loans with a mortgage over property or debentures over company assets.
After secured creditors, certain debts get preferential status, primarily specific tax liabilities (VAT, PAYE) owed to HMRC.
This is where most businesses who are owed money for goods or services fall. Unsecured creditors are paid from any remaining funds, and often only receive a percentage of what they are owed.
While you may be an unsecured creditor, taking swift and strategic legal action can significantly increase your chances of recovery before insolvency occurs.
We offer a range of fixed-fee services for undisputed debts, starting with the Letter Before Action. For disputed debts, we provide a clear estimate of our hourly rates. Our focus is on making debt recovery commercially viable for you, and often we can add our costs to the debt to be paid by the debtor.
A Letter Before Action gives the debtor a strict deadline (usually 14-30 days). If they pay, the matter is resolved quickly. If court action is needed, the timeline depends on whether the debtor defends the claim and the court's schedule, but our proactive approach ensures there are no unnecessary delays.
Absolutely. A series of small unpaid debts can have a major impact on your cash flow. Our fixed-fee initial steps are designed to be a cost-effective way to recover smaller amounts and show debtors that you take non-payment seriously.
Let our expert solicitors take firm, professional action to recover what you are owed and protect your business's cash flow.
Start the Recovery Process0330 333 8797
info@wildings-solicitors.co.uk
862-864 Washwood Heath Rd, Ward End, Birmingham, B8 2NG
Monday to Friday
9.00am - 5.00pm
Wildings Solicitors are authorised and regulated by the Solicitors Regulation Authority (no. 552128). Wildings Solicitors is a trading name of Wildings Solicitors LLP, a limited liability partnership registered in England and Wales. Registration Number OC360274 registered office 862-864 Washwood Heath Road, Ward End, Birmingham, B8 2NG. A list of Directors is available from the registered offices. We do not accept service by email.
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