Millmore, Andy
September 1993
Accountancy;Sep93, Vol. 112 Issue 1201, p38
Trade Publication
This article discusses the legal aspects that a creditor must consider in collecting debt. The last step in a debt collection exercise is enforcement, like translating a court judgment into money and thereby repaying the original debt. This means that serious consideration must be given at the outset to the debtor's worth and assets. This might sometimes show that proceedings will do nothing more than throw good money after bad. After deciding to do something, the creditor's next decision is whether court proceedings by way of writ are appropriate or whether the debtor is not paying because it is insolvent and should therefore be wound up. It should be remembered that winding up is one of the available means of enforcement. There are advantages to the statutory demand route. The form is relatively simple and hence cheap to complete and serve. Its receipt sometimes has a cathartic effect on the debt. If the debt is not paid within 21 days, the debtor is deemed to be unable to pay its debts and a winding-up petition may be presented on that basis. The disadvantages include the fact that it is the opening move in insolvency proceedings. Once these are actually instituted the original petitioning creditor can quickly lose control.


Related Articles

  • Scotland's Changing Approach to Debt.  // Credit Control;2004, Vol. 25 Issue 3/4, p14 

    Discusses changes in the way Scotland approaches debt. Difficulty of collecting legitimate debt; Enactment of Abolition of Poindings and Warrant Sales legislation; Introduction of Debt Arrangement Scheme; Need for early intervention strategies to break debt cycle.

  • Avoid a sting in the tail. Davies, Kerry // Commercial Motor;10/15/2009, Vol. 210 Issue 5353, p26 

    The article offers suggestions on the legal aspects associated with acceptance of part-debt recovery payments where the words "in full and final settlement" are attached to the transaction. It further informs that acceptance of a part-payment in such circumstances can discharge the entire debt...

  • Know the law when it comes to debt collection. ADELMAN, S. ALLAN // Medical Economics;9/19/2008, Vol. 85 Issue 18, p40 

    The article addresses the appropriate collection system that must comply with the Fair Debt Collection Act in the U.S. According to the author, the law was enacted by the Congress to help ensure the fair treatment by collectors to debtors. He cites that the collector cannot discuss the patient's...

  • Creditors' Contempt. Shepard, Lea // Brigham Young University Law Review;2011, Vol. 2011 Issue 5, p1509 

    This Article takes a fresh look at the power of courts and creditors to force debtors to repay their obligations through in personam collection techniques. Variously known as "debtor's examinations," "turnover orders," "citations to discover assets," "supplementary proceedings," "proceedings...

  • Suing the Debtor: Examining Post-Discharge Suits Against the Debtor. Gummow, Susan N. K.; Wunderlich, John M. // American Bankruptcy Law Journal;Summer2009, Vol. 83 Issue 3, p495 

    The article offers information on how a debtor can sue a person after filing a bankruptcy protection in the U.S. Under the general rule, once a debtor has received a discharge in bankruptcy, the Bankruptcy Code protects him from the collection activities of creditors whose claims have been...

  • Preserving the "Subjective Prong" of Your "Ordinary Course" Defense. Chandler, B. Summer // Business Credit;Oct2008, Vol. 110 Issue 9, p60 

    The article offers information on ordinary course of business exception under section 547 (c) (2) in the Bankruptcy Code in the U.S. Under section 547 (c) (2), a creditor can protect the disgorgement of assets transferred by the debtor in the ordinary course of business. For this exception to...

  • Get on the right track. Kidd, Margo // Credit Management;Jun2007, p34 

    The author reflects on the importance of accurate tracing on the debt collection purposes of lenders and debt collection companies. He said that debtor who move away without informing their creditors are an increasing problem for lenders and debt companies since it is impossible to collect a...

  • FDCPA: Caught in the Net. Winston, Jay; Winston, Arthur // Debt Cubed;Nov/Dec2004, Vol. 1 Issue 1, p14 

    Comments on the action taken by the Circuit Court of Appeals of the Second Circuit in the United States to address the issue of the criteria to determine whether an attorney is regularly collecting debts-and not subject to the FDCPA. Opportunity to assess what constitutes regular collection...

  • Bill collectors. Blodgett, Nancy // ABA Journal;Feb85, Vol. 71 Issue 2, p21 

    Describes the work of collection lawyers in the United States. Skills and qualifications; Sophistication of debtors; Implications of the Bankruptcy Reform Act of 1978 for debtors and collectors.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics