What process could a creditor follow if I cannot settle an invoice?
It is always good to know the process that would be taken against you as well as knowing this process for if you ever needed to implement it yourself.
As a credit management company, we spend the majority of our time helping companies to follow a structured credit management process in order to get invoices paid on time ensuring that this scenario is avoided.
The majority of the time if you communicate with your supplier and outline when you can make payments the actions that are outlined below can be avoided.
The actions that can be taken by creditors have been listed below; these are in order of severity.
Before any of the actions listed below take place, you should receive notice of what the creditor is intending, also detailing the overdue amount and where payment should be sent.
- Summons to the County Court
- CCJ (County Court Judgement)
- Enforcement Notice
- Warrant from a bailiff
- Charging Order
- Statutory Demand
- Winding up petition
If personally guaranteed…
Of course, if any company debts are personally guaranteed, the creditors will hold you personally responsible at the point where the company has defaulted on the payments.
This can be a long drawn out process so communication is key to getting the issue dealt with your supplier.
If your looking to ensure you don’t get into this position yourself we offer a number a services that may be of interest.
