Emma Milner, Paralegal within our Litigation department, discusses COVID’s impact on creditors in light of the government’s relief measures.

A landlord wanting to end an Assured Shorthold Tenancy and regain possession of their property can use either a section 8 notice (Notice to Quit) or a section 21 notice (Notice of Possession), or, depending on the circumstances we might advise serving both and deciding which to rely on as the matter progresses.

So what do you need to be thinking about when deciding which way to go?

On 1 October 2017 a change is due in the way that businesses deal with an individual, including a sole trader, who pays them late.

The Ministry of Justice have put in place a formal protocol for collecting overdue funds from an individual. The protocol is expected to be followed by all parties prior to issuing a claim form with the idea that the issuing of a claim is a last resort. We expect the court to be heavily critical of those parties that do not follow the protocol and rush out and issue a claim form without following the procedure. We would also expect the court to look to creditors to follow the spirit of the protocol for the collection of commercial debts though the protocol does not extend to them it would be wise to certainly consider the protocol when taking steps on any business to business debt.

With the recent increase in court fees Statutory Demands are becoming more and more frequently used when recovering debts from individuals or companies. The threat of what might happen once a statutory demand is served is so great that the debtor should take the service of the demand very seriously and deal with it promptly.

Why should you lose out on accrued interest because a debtor has withheld your money? Quite simply, if you don’t claim it you will miss out.