It is tempting to resort to legal action – in what is often referred to as the ‘small claims court’. But what are the chances of success and will it be worth the cost and hassle? – debt claim legal services can assess this for you and advise on the merits of taking legal action so that you can make an informed judgement.
There is no such thing as a small claims court: the County Courts use a ‘small claims track’ to handle claims for less than £5,000.00. It is designed to be quick, inexpensive and unintimidating for the layperson. Larger amounts are usually handled by a slower, more expensive and complicated system, where a solicitor is usually required (charges could be as much as £195.00 per hour) however, we have overcome this problem and can issue for any amount through Debt Claim, saving substantial fees.
Debt Claim Process
You can issue a claim at your local County Court for money owed to you by your customer in respect of goods supplied or services rendered, however, Court action should always be a last resort. You must give the debtor a clear opportunity to pay the balance before you issue a claim. debt claim legal services can do this for you by generating a ‘Letter Before Action’ (LBA) saying how much they owe, what it is for, efforts you have already made and a warning that we will make a Court Claim once a reasonable deadline expires (such as 14 days).
Moreover, it is only worth issuing a debt recovery claim if you think the defendant will be able to pay. If your debtor is insolvent, has adverse court orders such as CCJ’s, or is an unemployed individual, for example, it may not be cost effective to take action because enforcement of a Judgement may not be possible. It is not sensible to issue a claim if there is little prospect of getting your money. debt claim legal services can assist in gathering the required information to establish if the debtor is worth suing, thereby avoiding wasted time and money.
The court fee to start a claim is roughly 10% of the amount claimed, which may be added to what you are owed. We can issue your claim through our online system saving both time and money. The defendant has 14 days to respond after service of the claim, and the ideal outcome is that the defendant does not contest the case, and pays you without you actually needing to go to Court.
If the defendant disputes your claim, a hearing is necessary and the Court will allocate a date – so consider whether you are prepared to attend a possible trial. The two parties present their case to a judge in relatively informal surroundings. The defendant is usually asked to pay such costs if you win, but not any solicitor’s fees you incur if you decide to employ one for the hearing if the debt is below £5,000.00.
For most small claims matters a solicitor is not necessary: to recover money owed for instance, you just need to prove the debt exists. If you are not confident representing yourself you can take a ‘lay representative’ to speak on your behalf, a relative or friend perhaps however, you should always seek advice before making a decision about this.
Dispute Resolution Service
For higher value disputes it is possible to avoid a trial and costly/protracted legal action through the use of our dispute resolution service. This is designed to achieve an agreement within no more than 7 hours.