Make a court claim for money

Recovering funds that are rightfully yours can be a daunting task, especially when the amount owed exceeds £600. When faced with a reluctant individual or a business that’s failed to pay, there are several legal options to consider.

Initially, it’s usually best to try to resolve the issue amicably, legal action is a bold move that will no doubt stir up emotions. Start by reaching out to those who owe you money with a formal letter, email, or even a phone call as a reminder. In today’s demanding working climate it can be easy to forget about debt and a nudge to pay may be exactly what’s needed. If the debtor is unable to pay the full amount immediately, consider negotiating a payment plan. Showing goodwill and empathy can prevent the situation from becoming heated. If this is the route that’s taken, always have it documented in writing.

No response? It’s now time for a Letter Before Action (LBA). This is a formal demand for payment and functions as a final warning before legal action. Clearly outline the amount owed, provide a summary of how the debt arose and set a deadline for payment (usually 7 or 14 days). The consequences of non-payment, such as taking the matter to court should also be clearly outlined.

With any further disputes or unexpected twists, alternative dispute resolution (ADR) methods like mediation or arbitration can be effective. ADR can be a faster and more cost-effective alternative to going to court. It allows both parties to come to an agreement with the help of an impartial mediator, which can often preserve relationships and avoid the tensions of court proceedings.

You can escalate the matter by filing a claim with the County Court. A small claim is typically between £600 and £10,000. The most straightforward way to file a claim is through the Money Claim Online service, which allows you to submit your case digitally. Be aware that filing a claim comes with court fees, which vary depending on the amount you’re claiming. These fees are usually recoverable from the debtor if you win the case.

A county court judgement (CCJ) or high court judgement is the result of court action against someone owing money, who fails to acknowledge or respond to the claim. If a judgement is issued, the court has formally decided that the money is owed and will state the amount, payment options (full or instalments), who to pay and the deadline. A CCJ will be kept on record for 6 years and will seriously affect credit scores. If the amount is paid off in under a month however, there will be no record. If the court rules in your favour and the debtor still doesn’t pay, enforcement measures are available to ensure you get your money. Since your claim is over £600, you can use High Court Enforcement Officers (HCEOs) to collect the debt. HCEOs are empowered to seize and sell the debtor’s assets to recover the amount owed. To use HCEOs, you’ll need to apply for a Writ of Control which legally authorises the officers to enforce the judgement by taking control of the debtor’s assets.

Debt thresholds for severe actions: