Navigating Debt Recovery and Insolvency

Monica Kapur, a seasoned Partner in the Restructuring and Insolvency team at Harrison Clark Rickerbys Solicitors. With over seventeen years of experience as an insolvency solicitor, Monica's expertise was on full display in this well-attended online gathering. The event was deftly moderated by our very own Andy Moylan, a prominent member of EFCIS Ltd.

Exploring the World of Debt Recovery

Monica embarked on a journey into the realm of debt recovery, providing a comprehensive overview of the benefits and drawbacks associated with various debt recovery options. She delved into the legal processes at your disposal, navigated through a compelling case study, and offered strategic steps to optimise debt recovery procedures while minimising risks.

Monica also introduced an interactive twist by using Slido.com, allowing the audience to provide immediate feedback and enhance the learning experience.

The Power of Negotiation and Mediation

Starting with the basics, Monica emphasised the significance of engaging with the debtor directly. Understanding the reasons for non-payment and resolving queries emerged as the first and often most effective step in the debt recovery process. Negotiation, as Monica highlighted, can be a potent tool, with a 70% success rate in obtaining payments on the same day or shortly thereafter.

Fine-Tuning Your Credit Control Processes

In addition to negotiation and mediation, Monica offered practical advice for businesses. This included reviewing credit control processes to ensure that payment terms align with contractual obligations. She encouraged a fresh look at key contracts or agreements with customers, checking if there's room to tighten payment terms. For those navigating risk, she also suggested the addition of retention of title clauses.

Auditing Customer Health and Supply Chain Mapping

Intriguingly, Monica proposed a comprehensive approach to risk management, which involved auditing your customers' financial health. This could entail checking credit ratings, seeking guarantors, or exploring avenues for enforceable security. Moreover, Monica advocated for considering credit insurance as an added layer of protection. Businesses were also advised to embark on supply chain mapping to understand the interconnected web of business suppliers and their suppliers.

Proceed with Caution in Litigation

Monica cautioned against rushing into litigation without considering the chances of success and the potential costs and delays associated with CCJs and enforcement. In her expert opinion, insolvency processes, including statutory demands, winding up petitions, and bankruptcy petitions, should be seen as a last resort.

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