Non payment of settlement agreed – Expert advice
Non payment of settlement in the UK
Non-payment of settlement is a growing problem in the United Kingdom. It is a growing concern among individuals and companies alike. Settlements are usually reached as a means of resolving disputes between parties without the need for legal action. This can save both time and money, but not if the settlement agreement is not paid on time.
Different types of settlement
Settlements in the UK come in various forms and guises. Settlements can be made on both a personal and business level. They can include divorce settlements, employer tribunal settlements and full and final settlements. This also incorporates part 36 offers to settle.
For example, an employee may have an issue with their employer and make a settlement agreement as opposed to going down the employment tribunal route.
Settlement agreements are also quite common in business. Very often, a settlement can be agreed in respect of goods or services between businesses. For instance if a company supplied goods for which some where damaged, a settlement maybe reached between both parties. Non payment of settlement is always a concern for some.
Settlements are usually agreed between two parties on the basis that each side will keep their side of the bargain. Regrettably, this is not always the case. Unpaid settlements are on the increase with one side reneging on their obligation.
Non payment of settlement sum is increasing
Unfortunately, the failure to pay settlement agreements is becoming increasingly common in the UK. This causes frustration and financial hardship for those who were counting on the agreed-upon funds. There are several reasons why settlements may go unpaid, including financial difficulties, deliberate avoidance, and disagreements over the terms of the settlement.
Causes of an unpaid settlement
One of the main causes of non payment of settlement is financial difficulty. In some cases, the party responsible for paying the settlement simply cannot afford to do so. This may be due to unexpected financial challenges, such as a sudden drop in revenue or an increase in expenses. In these situations, it can be difficult to find the money to pay the settlement, even if the party is willing to do so.
Another reason why there maybe an unpaid settlement is deliberate avoidance. In some cases, the party responsible for paying the settlement may try to avoid their obligation by ignoring communication from the other party or refusing to respond to requests for payment.
This can be frustrating and time-consuming for the party seeking payment, and may require legal action to enforce the settlement.
Disagreements over the terms of a settlement can also lead to non-payment. For example, one party may believe that the terms of the settlement have not been met, while the other party may disagree. This can lead to a deadlock, with neither party willing to pay until the dispute has been resolved.
Preventing non payment of settlement sum
The failure to pay a agreed settlement sum can have serious consequences for both parties involved. For the party seeking payment, it can mean financial hardship and the need to pursue legal action to enforce the settlement. For the party responsible for payment, the consequences can include damage to their reputation, legal action, and additional expenses to resolve the dispute.
To avoid the non-payment of settlements, it is important to be clear about the terms of the settlement and ensure that both parties understand their obligations. This may include setting a timeline for payment, specifying the amount of the settlement, and outlining any conditions that must be met before payment can be made.
Settlement agreement not been paid? – Take action
If you are met with non payment of settlement, it is important to take action as soon as possible to enforce the agreement. This may involve seeking legal advice or hiring a debt collection agency to facilitate payment.
In some cases, it may be necessary to take legal action to enforce the settlement, which can be costly and time-consuming. That is why working with a Professional Debt Collection Agency is the more favourable option for most these days. A legal binding agreement is unequivocal evidence that a debt is due. It is almost the same as dealing with an unpaid promissory note.
Always remember, taking positive action will help you get your settlement paid faster.
At Federal Management, we have helped thousands deal with the recovery of an unpaid settlement. Whatever the scenario, our Debt Recovery experts can provide sound advice on your options to resolve. We often receive calls from people stuck at the wrong end of an unpaid settlement that has been pre-agreed.
As stated, the non-payment of settlements is a growing concern in the UK. It can have serious consequences for both parties involved. To avoid this issue, it is important to be clear about the terms of the settlement. With careful planning and communication, settlements can be a useful tool for resolving disputes.