If someone owes you money and has not paid, it can put real pressure on your finances and cause significant stress. This is especially true for small businesses, landlords, and individuals who rely on timely payment. Many people delay taking action because they are unsure of the legal process or worried about the cost.
In England and Wales, there is a clear and lawful way to recover a debt. Acting early and following the correct steps can significantly improve your chances of being paid.
Confirming the debt and taking early action
Before taking formal action, you should first confirm that the debt is legally owed. A debt usually arises from a contract, which can be written, verbal, or implied by conduct. Evidence may include invoices, contracts, emails, text messages, bank transfers, or records of services provided.
You should identify the exact amount owed, when payment became due, and whether any part payments have been made. In most cases, court action must be started within six years from the date the debt became due, although different time limits can apply in specific circumstances.
The next step is to contact the debtor in writing. This is often referred to as a letter before action. The letter should clearly set out the amount owed, why it is owed, and give a reasonable deadline for payment. It should also explain that legal action may follow if payment is not made.
At this stage, you may consider the following options.
• Requesting payment in full by a set date
• Offering a repayment plan if appropriate
• Charging statutory interest where permitted
• Asking the debtor to explain any dispute
• Instructing a solicitor to send a formal demand
In many cases, a clear and legally drafted letter is enough to prompt payment without further action.
Court proceedings and enforcement options
If the debtor does not respond or refuses to pay, court action may be necessary. Most debt claims in England and Wales are issued in the County Court. Smaller debts may be dealt with under the small claims process, which is designed to be more accessible but still requires proper evidence and preparation.
Once a claim is issued, the debtor has an opportunity to respond. If they do not respond, you may be able to obtain a judgment in default. If the matter is disputed, the court will decide whether the debt is owed.
Obtaining a court judgment confirms that the debt is legally due, but it does not automatically result in payment. If the debtor still fails to pay, enforcement action may be required. Enforcement options include using enforcement agents, applying for an attachment of earnings order, freezing funds held in bank accounts, or securing the debt against property.
Choosing the right enforcement method depends on the debtor’s financial position. Taking advice at this stage can help avoid unnecessary expense and delay.
When to seek legal advice
Debt recovery is not just about sending demands or issuing claims. It requires careful consideration of evidence, procedure, proportionality, and cost. Taking the wrong step can weaken your position or result in wasted time and money.
Legal advice can help you assess whether the debt is recoverable, choose the most effective strategy, and ensure that all legal requirements are met. Early advice often leads to quicker resolution and may avoid the need for court altogether.
If you are owed money and want to recover a debt legally, contact us today for clear, practical advice. We can help you take decisive action and protect your financial position.
