While it isn’t possible to put an exact timeframe on debt recovery as each situation is different, we can provide an average estimation, and this will depend on the circumstances.
In complicated cases, often for larger sums of money, a negotiation period may be advisable.
For straightforward debts, matters can be brought to a head much quicker.
If negotiations are preferred, debtors often take an average of 60-90 days to seek an agreement over how debts will be paid.
If you reach the 90 day period and still do not have the owed money, the next step is to send the debtor a Letter Before Action. If the debt is against an individual, it’s recommended to wait at least 30 days before taking further court action to be compliant with the court protocols in place. For business debts, a 14 day notice period is often enough before escalating to court action.
In more complicated matters, the next best option where an LBA has not worked is to seek a form of alternative dispute resolution, such as mediation. There is no specific time frame for how long this will take, as mediation meetings can often take more than one attempt depending on the circumstances of the case.
After you have exhausted all these options and are still faced with not having been reimbursed the debts owed, court proceedings will be the next step. Unfortunately, taking an individual or business to court can be a lengthy process, with the expected time frame up to 30 weeks.