Debt Recovery Job, Debt Recovery Solicitors, and Debt Collection Agencies

Getting Debt Recovery Job

Executive summary by Mischa Weston-Green

If you are currently looking for a new job and are considering vacancies in a law firm within a Debt Recovery Legal Team, this article is designed to give you an insight into the day to life of a Debt Recovery Lawyer and the duties of a Debt Recovery job.

A Debt Recovery job is a good career choice for those individuals who enjoy a structure and procedure to follow.

Depending on the value of the claim, as a general rule of thumb, cases will be dealt with in the County Court via the Small Track, Fast Track or Multi Track. Each track has a different structure.

With the Small Claims track this is aimed at individuals or small companies dealing with claims themselves, therefore this is a fairly informal procedure with few deadlines to comply with.

As an example, I will run through a general Small Claim in the County Court.

Initially, the client, whether an individual, Partnership or a Limited Company, Limited Liability Partnership or a PLC will approach a Solicitors firm and instruct a member of a specialist Debt Recovery Legal Team to deal with the dispute on their behalf, this could be for example regarding an unpaid invoice.

If payment is not then received, a Claim Form is issued in the County Court together with a copy of the unpaid invoice. If payment is then not forthcoming, you may look at Enforcement Options. In cases where the sum due is over a certain amount (specified by law), you also have the option of presenting a Bankruptcy Petition (in the case of an individual or partnership) or a Winding Up petition/Insolvency (in the case of a Limited Company, Limited Liability Partnership or PLC). You can choose to apply for voluntary Bankruptcy or Winding Up/Insolvency. Many individuals who have serious debt will choose to apply for Bankruptcy. Debt Recovery jobs, as well as Bankruptcy and Insolvency work can be demanding and interesting work.

So therefore, if you are looking for a legal Debt Recovery job as a Solicitor/Legal Executive/Trainee Legal Executive/Paralegal or Legal Assistant I hope you have found this article to be of some assistance to you in your decision making process as to your future career in law.

The Difference Between Debt Recovery Solicitors and Debt Collection Agencies

Solicitors are professionally qualified, are subject to a professional code of conduct and are entitled to represent their clients in court proceedings. They are obliged to hold insurance to cover claims for losses suffered by their clients if the client receives negligent advice. If a solicitor receives money on behalf of a client and misuses the money, his or her professional body, the Law Society , will step in and reimburse the client for any loss suffered. Solicitors typically charge either on a time basis for work done or on a fixed price basis.

Debt collection agencies vary considerably but, unless they employ solicitors within their organisation, they are not entitled to act in court proceedings on behalf of their clients nor will they be subject to professional rules of conduct in the same way as solicitors. A small minority of debt collection agencies have in the past received money from debtors of their clients but have failed to pass on that money to their clients as a result of fraud or insolvency, leaving their clients out of pocket. Debt collection agencies often charge by reference to a % of the debt recovered by them.

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