Islington Solicitors

Debt Recovery

We believe the  debtor has the means to pay, but still fails to comply with our requests.  What can be done about this?

For debts larger than £750, you could start bankruptcy proceedings, although if the debtor has the means to pay, then this option would make little sense as you will not necessarily get your money back.

If you have sent formal requests for repayment of the debt through a solicitor, another option to look at is a statutory demand, although these should be used with caution.  A statutory demand is a formal legal document which as well as notifying the debtor of his and your rights requests the debtor repays the debt within 21 days or files a counter claim with the County Court within 18 days.  However, statutory demands are risky because if you do not follow up the demand with formal legal action, the debtor could call your bluff and be even more difficult to deal with.

If you take the debtor to the County Court, and judgement is awarded in your favour, but the debtor still refuses to pay, you could apply to the Courts for an order to have the debt repaid from the debtor’s bank account or directly from his wages.

I am owed £4,500.  What is the legal process for debts of this size ?

If you have exhausted other means of recovering the debt, including having solicitors write requests for payment and usage of statutory demands, then you can apply to the County Court to have the repayment of the debt legally enforced.  For debts smaller than £5,000, the case will be generally heard in the Small Claims Court, unless the debt is particularly complicated (which is unlikely for a debt of this size).  Small Claims Courts are generally less formal than other “Tracks” through the County Court (including Fast and Multi Tracks) and, as such, are designed to be quicker and more accessible.  The waiting time for a Small Claims hearing could be as little as a couple of months.  In common with other tracks, you will be expected to fill in an application form and exchange witness statements with the other side.  You do not have to have legal representation, although you are, of course, entitled to have it if you feel you cannot represent yourself adequately.

What size debts are dealt with by the “Fast Track” of the County Courts?

Fast Track claims apply to debts ranging from £5000 to £15,000.

What sizes debts are dealt with by the “Multi Track” of the County Courts?

Multi Track Claims apply to debts ranging from £15,000 to £25,000.

For additional debt recovery information, visit the main page or main corporate law menu.