Recovery of Money and Property
The law regarding recovery of money and property has been set down in order to protect both consumers and traders. Having an awareness of your rights in this matter, whether you are a consumer or a trader, and sticking to the correct procedures is the best way to ensure that you abide by the law.
The Small Claims CourtIf you are owed money up to £5000 then the best legal way to recovery this money is through the small claims court. The small claims court can also be used to purse personal injury claims up to £1000. In general the aim of the small claims court is that creditors can make their claim to a District Judge without the need for any type of legal representation.
With complex legal requirements eliminated, the small claims court is very accessible to the layman trying to recover their money. Hearings are usually conducted by a judge in his or her chambers where everyone involved will discuss the matter without the need for formal proceedings. There are formal guidelines set down by the court to ensure that mistakes are not made by either party.
Recovery of MoneyIn a lot of cases where a credit company is pursuing a debtor the threat of the small claims court is enough to spur the debtor into action. No one wants to go through the stress of court action, and for debtors, there is a list of procedures set out with regards to making repayments that will mean the avoidance of a court hearing. If repayments are agreed then court hearings can usually be avoided and postal correspondence will usually suffice.
This usually also applies to people looking to recover money for issues such as unpaid wages, shoddy workmanship, motor claims and unpaid invoices. Most people would rather make repayments or pay in full than appear at a court hearing. It is only when one of the parties disagrees with the debt that the court hearing will usually proceed. Take a look at the way banks will dispute bank charges and when threatened with court action will usually pay up rather than appear in court to defend themselves. The threat of court action is usually enough for debtors to realise the gravity of the situation.
Claims to the Small Claims CourtThere is a wide range of claims regarding the recovery of money and property that can be brought in front of the small claims court. Claims can include:
- Unpaid Invoices
- Holiday Pay
- Unpaid Wages
- Unpaid Invoices
- Motor Accident Claims
- Bank Charges
- Refunds due to bad workmanship
- Unpaid rental security deposits
Recovery of PropertyRecovering property can be a more complex issue depending on the value of the property. If you are trying to recovery property under the value of £5000 then the small claims court can be used. However property claims above this amount will need to be dealt with by more formal court hearings and legal representation should be applied for.
If a creditor were to pursue a debtor for loan that was used to buy a house then a house repossession order can be issued by the court. In most cases there will be time granted to make up the arrears before the house repossession takes place.
Notification of Court AppearancesIn all cases where the creditor has applied to the courts there must be formal written notification sent to the creditor. This is a legal requirement if the courts are to be involved in the recovery of money and property. It will give the debtor time to take advice from an expert on credit and debt issues and to work out if they will be able to repay any money that is owed. Most debtors will usually accept some form of repayment plan rather than proceed with court action.
Pursuing the recovery of money and property via any type of court action can be stressful, but in order to recover money it may be the only action that can be taken. This applies not only to large credit companies but to the consumer who has been left out of pocket by companies or disreputable business people.