Frequently Asked Questions
Why have we received a Notice from Advocate?
The creditor named in the Notice has instructed Advocate to issue legal proceedings to recover payment of overdue invoices and statutory late payment charges.
How do we pay?
To prevent additional charges and legal proceedings go to the How to Pay page for instructions:
How to Pay
Why have late payment charges and recovery costs been applied?
Late payment compensation and late payment interest has been applied to the principal invoice sums in accordance with “The Late Payment of Commercial Debts Regulations 2013”. This legislation also provides creditors with a statutory entitlement to claim the costs involved in instructing a third party to recover payment of a commercial debt.
What happens if we pay the invoices but not the late payment charges?
Payment that does not include the statutory late payment charges and recovery costs would result in the immediate issue of legal proceedings against your company. Payment of the overdue principal invoice sums would not cease your company’s liability to pay the statutory late payment charges and recovery costs accrued up to the payment date, these charges would remain legally enforceable.
We refuse to pay the late payment charges?
Advocate will issue legal proceedings against your company to recover payment of the late payment charges. The costs involved will be added to the total amount you will have to pay to settle the proceedings.
We did not agree payment terms with the creditor?
In the absence of written payment terms, current legislation states that invoices become due for payment 30 days following the invoice issue date.
The invoices are in dispute?
You will need to demonstrate that a genuine dispute exists. This will include providing us with documentary evidence to support that a genuine dispute exists and that you raised the dispute with our client prior to being contacted by Advocate. Please email your supporting documentary evidence to enquiries@acdr.co.uk and include the reference number printed on the Notice you have received.
We have already paid these invoices?
You must provide us with proof of payment. A copy of the bank transfer confirmation should be emailed to enquiries@acdr.co.uk. You must evidence the amount paid, the date paid and the payment method.
We paid the invoices before we received the Notice from Advocate?
The date you received our Notice is irrelevant. Late payment charges apply from the date 30 days following the invoice issue date. Payment of the overdue principal invoice sums does cease your company’s liability to pay the statutory late payment charges and recovery costs accrued up to the payment date, these charges remain legally enforceable.
Can we pay in instalments?
Advocate have been instructed to recover full immediate payment. There is no legal requirement on our client to accept payment in instalments. However, if you propose a a reasonable settlement, we will refer it to our client. Please note it is unlikely that a proposal that does not clear 50% of the balance immediately or that extends beyond 30 days would be accepted.
We don’t have the money to pay?
On expiry of the Notice you have received, legal proceedings will be issued against you company. The costs involved will be added to the total amount you will have to pay to settle the proceedings.
What are the consequences of a County Court Judgment?
Your company’s existing credit facilities and ability to obtain new credit will affected.
What happens if a County Court Judgment is not paid?
Bailiffs will be instructed to Enforce Judgment by attending your premises to seize goods to be sold at auction to the value of the Judgment.
Why have Advocate issued our company with a Notice of Insolvency Proceedings?
The creditor named in the Notice has instructed Advocate to issue a Winding up Petition to recover payment of overdue invoices and statutory late payment charges.
What can we do to prevent a Winding up Petition being issued?
You must pay the total amount demanded within 7 days of the date of the Notice of Insolvency Proceedings to prevent a Petition for the Compulsory Winding up of your company being issued. If a Petition is served you can expect to have to pay considerable additional costs should you wish to prevent your company entering Compulsory Liquidation.
Our company has not been served with a Statutory Demand?”]
There is no legal requirement to serve a limited company with a Statutory Demand prior to the issue of Insolvency proceedings, provided that the company has been given notice of the intended proceedings.