how to word a 21 day letter for collecting a debt

ReadySteadyGo

Hi There,

I wonder can anyone help me.

Does anyone know how to word a 21 day statutory letter requesting payment of money owed to me from a company.

Cheers!

lionela

A letter to demand payment within 21 day's should be simple enough to write.
But first ...have you asked or requested this payment before i.e phoning or in conversation etc. If that was the case then your letter should include those sentiments regarding the payment.

If so then you include in your letter about previous attempts to be paid and that you are giving the other party(s) a 21 day limit for the payment of the monies /loan outatanding...and add ...that if this is not resolved you will have no choice but to consult a solicitor to have this matter resolved.

purpur1

I would consult a solicitor before doing this and not just take a sample letter that is given to you, or at least get it given the once over by a solicitor. As far as i was aware, solicitors should send these on behalf of the creditor. I didn't think you could send it yourself, at least in Ireland anyway, but i could be wrong.

It's heavily covered under the 1963 Companies Act, so if you're sending this to a company, they will be treating it very seriously and seeking legal advice straightaway.

ReadySteadyGo

Thanks for your help! Yes, I have been chasing 8-(

From reading around, I saw that a 21 day letter has statutory weight - the point being that if payment is not made in 21 days, the company is assumed insolvent and one can then petition the high court to wind up the company. I understand it is serious. But so is non payment of monies long due!

Maybe it would be better coming from a solicitor as it would appear more formal. I am waiting on a price from a solicitor on writing one. But I was surprised at the lack of information on the web about what is "inside" the 21 day letter.

As it has some statutory weight, I was wondering if you need to quote section 214 of companies act or have some other legalese in it, or can you just say, "21 day limit for payment of monies"

Our man in Havana

Any letter should be sent by a solicitor as the next move should be the issuing of proceedings.

Our man in Havana

http://www.irishstatutebook.ie/1963/en/act/pub/0033/sec0214.html#zza33y1963s214

214.—A company shall be deemed to be unable to pay its debts—
[GA]

( a ) if a creditor, by assignment or otherwise, to whom the company is indebted in a sum exceeding £50 then due, has served on the company, by leaving it at the registered office of the company, a demand in writing requiring the company to pay the sum so due, and the company has for 3 weeks thereafter neglected to pay the sum or to secure or compound for it to the reasonable satisfaction of the creditor; or
[GA]

( b ) if execution or other process issued on a judgment, decree or order of any court in favour of a creditor of the company is returned unsatisfied in whole or in part; or
[GA]

( c ) if it is proved to the satisfaction of the court that the company is unable to pay its debts, and in determining whether a company is unable to pay its debts, the court shall take into account the contingent and prospective liabilities of the company.

Tom Young

Sorry, this advice can come from a solicitor or debt collection agency. The formalities here are not straight forward! In addition the Courts are slow to Act as debt collection forums under S.214 or indeed 213.