The Limitation Act 2010 sets timeframes for making a claim. Generally, you have six years from when the debt was due to take legal action. In limited cases, this can be extended if you only recently became aware of the debt, but no claim can be brought after 15 years.

2. Recovery Options

There are several ways to pursue a debt:

• Court proceedings: You can apply for a judgment, which can then be enforced through wage deductions, charging orders, or seizure of assets.
• Statutory demand: For debts over $1,000, you can issue a statutory demand. If the debtor does not respond within 15 working days, you may apply for bankruptcy or liquidation.
• Specific enforcement: Some debts, like child support or student loans, have their own statutory recovery tools such as deduction notices.

4. Bankruptcy and Liquidation

If the debtor is unable or unwilling to pay, you may consider formal insolvency steps. Bankruptcy and liquidation involve dividing the debtor’s assets among creditors. These are serious processes, usually used as a last resort.

6. Costs of Recovery

Many contracts include clauses allowing the creditor to recover legal or collection costs. These are enforceable if clearly stated and reasonable and can make a real difference in the outcome.

Talk to Us About Recovering a Debt

If you are owed money, we can help you assess your options and take action. Whether it is negotiating a resolution or filing legal proceedings, our team can guide you through every step. Contact us today for practical, expert advice on debt recovery.