Debt Collection in Jersey

Investors who open a company in Jersey may find that at some point during their business activities they will have to approach clients or customers for debt collection in Jersey.

Debt collection encompasses both pre-litigation steps and the litigation process, as may be required. In Jersey, companies follow the debt collector’s code of conduct and other relevant laws and practices that have to do with professional practices, diligence and others.

Rules for collecting debt in Jersey

Debt collection in Jersey becomes a necessity when one or more payments are overdue and threaten to affect the company’s cash flow and proper functioning. In all cases, regardless of the cause that led to the occurrence of the debt, a general code of conduct is followed.

Some of the main principles of debt collection in Jersey include the following:

• Comply with the relevant laws that affect the business relationship and other aspects of collection;
• Trade fairly and responsibly;
• Observe the confidentiality rules, the data protection regulations and comply with the debtor’s reasonable requests;
• Do not use oppressive or intrusive collection procedures and observe the debtor’s legitimate wishes.

Our lawyers in Jersey can give you in-depth details on the relevant laws, collection practices, and your rights as the creditor and/or the rights of the debtor, as applicable.

If you followed the steps for company formation in Jersey and are now facing debt, we can advise you on the suitable practice to move forward with resolving the debt and resuming your business activities.

Debt collection steps

The two types of debt collection in Jersey (also used in other jurisdictions) are amicable debt collection and judicial collection (court debt collection).

Investors who open a company in Jersey and are concerned with maintaining good relationships with their business partners and clients will first use amicable debt collection. The main characteristics of this practice are listed below by our team:

• Review the debt and the relationship with the debtor. This can mean checking the signed agreements and asking for a report from your accountant;
• Send a first notification to the debtor communicating your intentions to start the collection practice;
• Following an initial discussion, propose or agree to a mutually beneficial payment plan;
• Monitor the payment schedule and make sure that the debtor observes his obligations.

Alternative dispute resolution methods can also be used. They can be particularly of interest if the debtor is unresponsive or unwilling to agree to amicable debt collection in Jersey.

If you need to bring a claim to the Petty Debts Court in Jersey (essentially used for small claims), our lawyers in Jersey can assist you with the relevant steps:

• Identify the defendant for the court proceedings;
• Send the claim letter;
• Prepare the summons and the claim summary;
• Bring your claim to the Greffe;
• Have the first court hearing and complete the pleadings;
• Represent you during the trial and help you enforce the court’s decision.

The petty debts court imposes a set of fees according to the value of the claimed amount. Examples include the following:

• £383 for claims between £ 25,000.01 to £30,000;
• £255 for a claim amount between £15,000.01 and £25,000;
• £191 when the claim amount is between £10,000.01 and £15,000;
• £151 when the debt is between £5,000.01 and £10,000.

These court fees are refundable only in exceptional circumstances. In practice, mediation is also proposed for many cases brought before the Petty Debts Court in Jersey. If the parties do manage to settle, then the mediation agreement that is signed as a result is a legally binding document.

Other services in Jersey

Our team can help you with debt collection solutions as well as with setting up a business in Jersey. Moreover, we can answer questions on how to immigrate to Jersey or set up a trust in Jersey.

Contact us for more information on debt collection in Jersey.