Debt Recovery in Scotland
Corporate debt recovery in Scotland can be a difficult process. From understanding the relevant regulations, seeking advice, following proper due process and initiating court proceedings. There are many steps involved. It is important that businesses understand the different approaches they can take when it comes to recovering any kind of corporate debt and before starting any legal action. This ensures the best outcome for them and their creditors.
Unpaid invoices can often end up in legal proceedings, especially if the debtor does not respond to attempts at negotiation for repayment. In these cases, creditors may be entitled to request interest on the outstanding debt. The amount of ‘statutory interest’ that can be charged in the UK is 8% plus the Bank of England base rate, which is set by the government. It is important for creditors to fully understand their rights when deciding whether or not to pursue legal action in order to ensure they receive all available compensation.