How to Take a Limited Company to Court for Unpaid Debt or Breach of Contract
Overview
If a limited company owes you money and won’t pay, you have the right to take them to court. Whether you’re a supplier, contractor, landlord, or professional service provider, understanding the process of suing a limited company is essential to recovering your debt. This guide will walk you through every step and explain how Absolute Enforcement can help you enforce a judgment if they still don’t pay.
Common FAQs About Taking a Limited Company to Court
Can I sue a limited company if they owe me money?
Yes. A limited company is a legal entity, and you can issue a court claim against them just like an individual. Ensure you sue the correct company by verifying their legal name on Companies House. Many Companies have different Variations to their company names, be sure to get the right one, first time.
What’s the process for taking a limited company to court?
Here’s a quick breakdown:
Check the company’s legal name on Companies House & ensure that they are still active.
Send a Letter Before Action or a Statutory Demand.
File a claim through Money Claim Online (MCOL) or your local County Court.
If they ignore the claim, apply for a default judgment.
If they still don’t pay, instruct Absolute Enforcement to enforce via the High Court (if debt is over £600).
Do I need a solicitor to take a company to court?
Not always. Small claims (under £10,000) can often be handled yourself. But professional guidance is recommended for complex cases or claims involving breaches of contract.
What happens if the limited company ignores the court claim?
If no defence is filed within 19 days (5 +14), you can request a default judgment. Once granted, this becomes legally binding and can be enforced.
Can I enforce a court judgment against a company?
Yes. If they still don’t pay after judgment, Absolute Enforcement can transfer your case to the High Court and enforce it using our certificated enforcement agents.
Instruct Absolute Enforcement to Escalate to High Court
What if the company is insolvent or dissolved?
If the company is insolvent, enforcement options are limited. You may consider issuing a winding up petition. If dissolved, you’ll need to check if it can be restored via court.
Can directors be held personally liable?
Usually no – unless there’s:
Fraud or misrepresentation
A personal guarantee
Wrongful trading
Illegal use of company status
In these cases, legal action against the individual director may be possible.
How long does the court process take?
Typical timelines:
Filing to hearing: 4–8 weeks (small claims)
Judgment enforcement: Within 7–14 days of instruction
Can I serve a Statutory Demand before going to court?
Yes. This is often used to pressure the debtor. If unpaid after 21 days, you can use it as grounds for a winding-up petition if the debt is over £750.
Can I take a limited company to small claims court?
Yes – as long as the claim is under £10,000. Claims can be made via Money Claim Online.
📊 Suing a Limited Company – Process Flowchart
→1. Verify Company Name
→ 2. Send Letter Before Action
→ 3. File Court Claim
→ 4. Get Judgment
→ 5. Enforce Judgment with Absolute Enforcement
🎯 Real Example: Successful Enforcement
“Absolute Enforcement helped us recover £8,400 from a dissolved marketing firm. Their team issued a High Court Writ and successfully seized funds from the company’s bank account within 10 days.”
📥 Free Resources
⚖️ After Judgment: What Are My Enforcement Options?
If the limited company still refuses to pay, these options are available:
High Court Enforcement (for debts over £600)
Third-party debt order (freeze bank accounts)
Charging order (secure debt against property)
Winding up petition (force liquidation)
Let Absolute Enforcement handle the enforcement. We’re authorised and experienced in fast, effective debt recovery.
Speak to the Experts on 0300 302 1010 or Contact Us Online
🔍 How to Ensure You’re Suing the Right Company
Make sure you:
Sue the registered name of the company
Include “trading as” if relevant (e.g. “ABC Ltd trading as XYZ Cafe”)
Use the registered address from Companies House
Mistakes in naming can invalidate your claim.
🔗 Related Services from Absolute Enforcement
📞 Need Help Taking a Company to Court?
Absolute Enforcement can support you at every stage — from letter before claim to enforcing court orders.
📱 Call us on 0300 302 1010 or Contact Us Online
We act fast. We act lawfully. We get results.
Last updated: July 2025 | Authorised High Court Enforcement Agents | Trusted by thousands across England & Wales
