The Master of the Rolls has introduced a new protocol for the recovery of debts owed by individuals and sole traders to businesses (the “Protocol“). It came into force on 1st October 2017 and a full copy can be found here.
This is an important change to the debt recovery process and it is important that businesses are aware of the changes. It has the potential to have a considerable impact on businesses’ ability to recover outstanding debts owed to them by individuals and sole traders.
Aims of the Protocol
The aims of the new Protocol are to:
- encourage early engagement and communication between the parties;
- enable the parties to resolve the matter without the need to start court proceedings;
- encourage the parties to act in a reasonable and proportionate manner in dealing with one another; and
- support the efficient management of proceedings where they cannot be avoided.