Legal Action for Debt Recovery #
Legal action should be a last resort, but if your debtor refuses to pay, you have the right to take them to court. This guide walks you through:
- Choosing the right court process
- How to file a claim
- What happens after a judgment
- The best enforcement options
Choosing the Right Court Process #
The court system has different routes depending on the debt amount and case complexity:
| Debt Amount | Court Track | Timeframe | When to Use |
|---|---|---|---|
| Up to £10,000 | Small Claims | ~6 months | Simple cases (e.g., unpaid invoices) |
| £10,000 - £25,000 | Fast Track | ~12 months | Cases needing more evidence |
| £25,000+ | Multi-Track | Varies | Complex cases, legal representation needed |
Make a Small Claim → Fast & Multi-Track Claims →
Before filing a claim: You must send a Letter Before Action (LBA) giving the debtor a final chance to pay.
Step 1: Starting a Court Claim #
If the debtor doesn’t pay after the LBA, follow these steps:
- Complete the Claim Form
- Online: Use Money Claim Online
- Paper: Use Form N1 (Download Here)
- Pay the Court Fee
- Fees depend on debt size (see fee calculator)
- Serve the Claim on the Debtor
- The court sends the documents, or you can use a process server
- Wait for the Debtor’s Response
- 14 days to respond
- They can pay, dispute, or ignore the claim
If they ignore it, you can request a default judgment (win automatically).
Step 2: Court Judgments (CCJ Process) #
If you win the case, the court issues a County Court Judgment (CCJ):
- Debtor must pay or face enforcement
- Judgment stays on their record for 6 years
- Interest may be added (8% per year for businesses)
Next Steps if They Don’t Pay: Enforce the judgment.
Step 3: Choosing the Right Enforcement Option #
| Method | Best For | How It Works |
|---|---|---|
| High Court Enforcement | £600+ debts | Court officers seize goods/assets |
| County Court Bailiffs | Lower-value debts | Local bailiffs recover money |
| Attachment of Earnings | Debtors in employment | Deducts money from their wages |
| Charging Order | Debtors with property | Secures the debt against their home |
| Third Party Debt Order | Debtors with money in the bank | Freezes their bank account |
Request High Court Enforcement → Apply for a Charging Order →
If they still don’t pay, you can petition to make them bankrupt.
Sample Letter Before Action (LBA) #
Subject: Urgent: Final Payment Request Before Legal Action
Dear [Debtor’s Name],
This is a formal notice that [Your Business Name] is owed £[Amount] for invoice #[Invoice Number], due on [Due Date]. Despite previous reminders, this remains unpaid.
If full payment is not received within 7 days, we will begin legal proceedings without further notice. This may result in a County Court Judgment (CCJ), additional costs, and enforcement action.
Payment should be made immediately to: Bank: [Bank Name] Sort Code: [Sort Code] Account Number: [Account Number]
If you have already paid, please ignore this letter. If there are any disputes, contact us immediately.
Regards, [Your Name] [Your Company]
Next Steps: Take Action Now #
- Step 1: Send the Letter Before Action (Download Template)
- Step 2: If no response, file a claim online (Start Here)
- Step 3: If they ignore the claim, request a default judgment
- Step 4: Choose an enforcement option if they still don’t pay
The sooner you act, the better your chances of recovery!