Debt Chasers – Our Perspective
An opportunity you say?
Up until Lockdown 1, creditors were if anything stepping up their action as the economy slowed, even pre-COVID-19. That’s why were talking about debt chasers-our perspective.
However, since early March 2020 the ability to chase, harass, secure Judgments and recover amounts of money due, have been frustrated.
Rishi’s job has been to avert a full ‘off the side of the cliff’ recession, with his Furloughing, CIBL’s, and BIBL’s etc.
To facilitate that on the legal side this ‘down glide’ of the recessionary graph, has manifested itself in:
1. The Coronavirus Act of 2020 – various points not least the lease provisions and what landlords could do in the event of non-payment of rent has now been extended to 31st of December 2020.
2. The Courts and their processes have been and continue to be interrupted. Not to mention the full closure of the Courts which in the first instance created a 3-month delay.
Since then the courts have been running at less than full capacity with the following demonstrating the ‘pent up’ delays:
- Courts setting dates to give a future Hearing date,
- The main processing Bulk Centre took 22 days to process a fee,
- A Solicitor we know and work with in the UK has 280+ Statutory Demands ready to go, but there is no point in serving them, until they can be effective with the full opening of the Courts,
- Counsel we work with, envisages disputed County Court Summons, taking 12+ months to be heard, and
- Statutory Demands are meaningless until Courts can be used to push these into Bankruptcy.
The fact that the Courts are ‘in limbo’ at best dilutes the ability for any legal actions to be effective.
As ever in difficult times, we will see a tightening of available funds, with moves already in the mortgage market showing bigger deposits and strained valuations starting to limit this go-to source.
Some people will see this as a chance to ‘kick the can down the road.’ I refer to this as the ‘Malingerers Charter.’ Doing nothing in the hope it will go away is not the way forward here.
As and when the Courts do open, we expect a wave of actions by creditors. No matter who they are they will need money and so to repeat the comment we see 2021 as ‘feral’. Creditors and their advisors will be toughened by their experiences as well.
It is vital to keep control here and not let costs and interest see the case career out of control.
And that’s our take on debt chasers – our perspective.
We would say this – but if facing debt, always be proactive, do something – especially now, AND THEREIN LIES THE OPPORTUNITY.