When Warrant’s of Arrest and Detention for non-payment of civil debt were removed from our Statute books a few years ago the Recoveries/Collection process lost it’s teeth to a point. The traditional collection route includes the following:

• Letter of Demand

• Summons

• Judgment

• Writ

• Sale in Execution

• Financial Enquiry and Emoluments Attachment Order proceedings for the balance, if any, still due.

Depending on what assets the debtor owns one normally ends up accepting a monthly amount from the debtor towards settlement of the debt. The whole process can be lengthly and expensive.

As a result McWilliams & Elliott Inc. has developed what we call a pre-legal procedure to speed up the recovery process. On receipt of any new instruction the debtor is called telephonically. Consequences of not paying are explained to the debtor as are the legal costs involved. Experience has shown that this process works extremely well in most instances. For example, a shop owner not paying his soft drink account, when reminded that in all likelihood he will not be able to continue his business without the support of that soft drink company, normally quickly agrees to a suitable settlement arrangement. The same obviously applies to various other examples and client’s. Of the various consequences of non-payment ( Judgment, Sheriff’s, Court appearances, stopping of further supply etc.) at least one, and most likely more, will be a consequence that the debtor is not prepared to deal with, in other words they would rather pay than have that consequence take place. 

The emphasis is then on getting the debtor to our offices to sign the necessary settlement documentation, or we can, where necessary, send somebody to them, to complete same. For example, Section 58 documentation is often used where the debtor consents to a Judgment and also an Emoluments Attachment Order for a certain monthly amount. This obviously saves a lot on both time and costs, as, inter alia, it is no longer necessary for the serving of a summons etc. and a suitable arrangement can be made within one or two days of us having been instructed. Immediately the disbursements are reduced and as there is a Consent to an Emoluments Attachment Order the payments are received immediately and not only many months down the road. To assist in this process we make extensive use of ITC, a system which allows us to check up, for a very small fee, the debtor’s latest work and employment details. This again can involve a substantial saving on unnecessary tracing which can be expensive and time consuming. 

Where the debtor does not have a phone and we are unsure as to whether or not they are working then we make use of a tracing firm contracted to us to either trace the required details or to arrange that the debtor’s call at our offices to make arrangements The so called “baseball bat approach” is not followed in this regard as we have found, as explained above, that debtor’s when the consequences are properly explained mostly prefer to enter into a settlement arrangement. Being contracted to our firm we have negotiated a very low fee with these tracing agents, the current rate being at least half of the standard rate, and it also ensures that our work is attended to immediately and that our client’s best interest are always considered. 

Very often it seems that debtor’s are avoiding summonses through ignorance and fear and as soon as we, or our tracing agents, have explained the various options available then an arrangement is made at a much earlier stage to settle the matter and obviously at a lower cost to all concerned. The whole pre-legal stage takes no longer than one week and where the debtor has not made an arrangement the summons can be proceeded with as per normal and no real time would have been lost. An added advantage of having done the pre-legal steps is that we will be in possession of detail relating to the debtor in respect of his employment, assets, working family members etc., which information would have come from the ITC searches and/or the tracers efforts. Knowing this further information dictates what further steps can be taken after Judgment and reduces wasted costs, for example sending the Sheriff to a home that has no assets. Now we can add a letter to the Sheriff telling him that we are aware that the debtor owns the assets as per the attached list and that they should be attached.

After summons the traditional legal procedures are followed but, we believe, more efficiently, quicker and cost effectively. Our whole recoveries department is structured around getting the debtor in as soon as possible to make suitable settlement arrangements. Where necessary, and applicable, it can even be arranged for a bank loan to be granted to the debtor in order that the full amount is settled immediately and that monthly payments are then made to the financial institution. This procedure stops our clients, being the banker for the debtor. In this regard use is made only of reputable and recognised financial institutions that are charging normal and proper interest rates. We have found that this is a popular arrangement for many debtor’s who prefer to avoid Judgment against their name and/or Emoluments Attachment Orders on their salaries. All of our client’s recovery files are dealt with by professional staff on a hands on basis. Consulting is done by a specialist in this field and therefore the settlement and/or monthly amounts agreed to are the best in the circumstances and not simply a nominal amount. The debtor’s financial circumstances are investigated properly.

Each client’s file is dealt with within the recoveries department by a specific professional staff member and secretary therefore a relationship between the client and ourselves is quickly built up ensuring that the client’s instructions are properly carried out at all times. We appreciate that all of our client’s have different needs in respect of, for example, monthly accounts and reporting and it is our aim that these needs are professionally accommodated. For example for many client’s handing someone over is not an easy decision as they would often like to regard that person as a future client. This is recognised and the relationship between the client and the debtor, were applicable, will always be considered. 

We believe that the combination of the pre-legal and the traditional legal procedure is the best way forward to recover monies due to our client’s more quickly, efficiently and cost effectively. We are continually adjusting the recoveries department to this end and will obviously continue to investigate and follow procedure that is in the interests of our client.