Question 1

What is an aged debtor?

Accepted Answer

An aged debtor is a customer or client who owes you money that is past its due date. Aged debtor reports group outstanding invoices by how long they have been overdue - typically 30, 60, 90, and 120+ days - so you can prioritise which debts to chase first.

Question 2

How old can a debt be before it is too late to chase?

Accepted Answer

In England and Wales, the limitation period for most contract debts is six years from the date the debt became due. After six years, you lose the right to bring a court claim. However, the older a debt gets, the harder it typically is to recover, so it is best to act sooner rather than later.

Question 3

Can I recover interest on aged debts?

Accepted Answer

Yes. For business-to-business debts, the Late Payment of Commercial Debts (Interest) Act 1998 entitles you to charge interest at 8% above the Bank of England base rate, plus fixed compensation of £40 to £100 depending on the debt amount. Garfield calculates this automatically when preparing your correspondence.

Question 4

How do I prioritise which aged debts to chase first?

Accepted Answer

Focus on the largest debts that are still within reasonable recovery timeframes. Debts in the 30-90 day bracket have the highest recovery rates. Garfield can process your entire aged debtor report at once, so you do not need to prioritise manually - every debt gets chased simultaneously.

Question 5

Can Garfield process my entire aged debtor report?

Accepted Answer

Yes. You can upload your full aged debtor report or connect your accounting software. Garfield creates individual recovery cases for each overdue invoice and manages them all in parallel, from initial reminder through to court proceedings if needed.

Question 6

What if a debtor has gone into administration?

Accepted Answer

If a debtor enters administration, you should register your claim with the appointed administrator. Garfield can help you prepare the necessary documentation to submit your claim to the insolvency practitioner. Recovery from insolvent debtors is uncertain, so early action on ageing debts is important.

Question 7

Is there a statute of limitations on debt recovery?

Accepted Answer

Yes. Under the Limitation Act 1980, you generally have six years to bring a court claim for a simple contract debt, or twelve years if the debt is under a deed. The clock starts from the date the payment was due or, in some cases, from the date of the last acknowledgement or payment.

Question 8

How does Garfield integrate with my accounting software?

Accepted Answer

Garfield connects with popular accounting platforms like [Xero](https://www.xero.com/uk), [Sage](https://www.sage.com/en-gb), [QuickBooks](https://quickbooks.intuit.com/uk) and [FreeAgent](https://www.freeagent.com/). Once connected, it can automatically identify overdue invoices from your aged debtor report and start the recovery process without manual data entry.

Question 9

What does a typical aged debt recovery process look like?

Accepted Answer

Garfield follows a proven escalation path: first a friendly payment reminder, then a formal chaser, followed by a Letter Before Action giving the debtor a final deadline. If the debtor still does not pay, Garfield can issue court proceedings through the small claims track. Most debts are recovered before reaching court.

Question 10

Can I write off bad debts instead of chasing them?

Accepted Answer

You can write off debts for accounting and tax purposes, but it is usually worth attempting recovery first. Many aged debts that seem unrecoverable are paid once the debtor receives formal legal correspondence. Garfield makes it cost-effective to chase even smaller aged debts.


Feature	With Garfield AI	With a lawyer	By yourself
Legal expertise	YesLegal expertise	Yes	No
Connect accounting software	YesConnect accounting software	No	No
Bulk create claims	YesBulk create claims	No	No
5 minutes per document	Yes5 minutes per document	Wait days for documents	At your own pace
Recover money faster	YesRecover money faster	No	No
Low fees	YesLow fees	Hundreds of £ per hour	Pay with your own time
Available 7 days a week	YesAvailable 7 days a week	No	Yes


Feature	With Garfield AI	With a lawyer	By yourself
Legal expertise	YesLegal expertise	Yes	No
Connect accounting software	YesConnect accounting software	No	No
Bulk create claims	YesBulk create claims	No	No
5 minutes per document	Yes5 minutes per document	Wait days for documents	At your own pace
Recover money faster	YesRecover money faster	No	No
Low fees	YesLow fees	Hundreds of £ per hour	Pay with your own time
Available 7 days a week	YesAvailable 7 days a week	No	Yes

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Clear your aged debtor book and recover overdue cash

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