Commercial debt recovery – how we can help
Recovering commercial debts can be a long and complex process, particularly if a debtor is determined to delay or obstruct payment. However, a recent High Court decision demonstrates that the law can offer powerful assistance to creditors. At Attwaters Solicitors, our Dispute Resolution team has been closely following this case which highlights the importance of seeking legal support when you are unable to recover money owed to you.
An overview of the case
The debt arose from a Tomlin order – a consent order that formalises the settlement of a dispute. Under this order, the debtor (Dr Aldiss) agreed to pay £450,000 in two instalments, the first being £150,000. Failure to do so would result in the entire sum becoming immediately payable. Dr Aldiss’ made a first payment of only £47,500, prompting the creditor (Century Property) to apply to the High Court to enforce a judgment debt of the remaining £402,500.
Dr Aldiss applied for an adjournment and a stay of the enforcement proceeding, claiming that the Tomlin order was invalid due to his alleged lack of mental capacity at the time it was made. However, the court rejected this as no evidence was submitted.
The court’s verdict
Century Property applied to the High Court for a mandatory injunction to recover the debt, requiring Dr Aldiss to withdraw a lump sum from his SIPP upon reaching age 55. The court considered the principles established in Blight v Brewster [2012] EWHC 165 (Ch), which established that debtors should not be allowed to hide assets in pension funds. It was found to be just and convenient to grant the injunction order as there were sufficient funds in Dr Aldiss’ SIPP.
The creditor also sought a default provision under section 39(1) of the Senior Courts Act 198, which would allow their solicitors to complete the necessary documentation if the debtor refused to withdraw the funds. In light of the debtor’s history of non-compliance, the court concluded that this was appropriate to avoid further delays and hearings.
Why this matters
This case shows that, even if you are dealing with uncooperative or evasive debtors, it is possible to recover the money you are owed, with legal support. It confirms that the courts can and will step in with pragmatic and robust orders to enforce debt and protect creditors’ rights.
How Attwaters can help
We know that being unable to recover debt can be incredibly frustrating, stressful and, of course, financially debilitating. That is why Attwaters operates a fixed-fee debt recovery scheme designed to support individuals in recouping unpaid invoices. From the initial Letter Before Action (LBA) to achieving a judgement and taking enforcement action, our knowledgeable Dispute Resolution team provides end-to-end support throughout the process.
To find out more about how we can assist you with commercial debt recovery, get in touch on 0203 871 0110 or email us at disputeresolution@attwaters.co.uk
