Thinking of pursuing a debt and continuing to Supply? Think again

There are a number of issues which arise if you continue to supply your client whilst there is a debt which you are considering pursuing: The act of continuing to supply may indicate that you are willing to accept that payment may not be made and/or that you are offering extended payment terms/ credit. Businesses will usually put a limit on the level of credit they are willing to offer before taking the decision to cease further instructions and pursue the debt. With the risk that a further debt may arise following supply, you are also leaving yourself open to then having to issue another set of proceedings. The Courts generally frown up multiple claims involving the same parties and the same issues. Accordingly we would recommend that the debt be crystallised, you cease to supply and you pursue the crystallised sum (along with interest and costs).

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