Debt recovery solicitors in Leicester

Unpaid invoices hurt small businesses more than most legal problems, and speed matters: the longer a debt goes unpaid, the less likely it is to be recovered.

Before court

Chase in writing, referring to your terms. If that fails, send a letter before action. Where the debtor is an individual (including a sole trader), the Pre-Action Protocol for Debt Claims applies, which sets out what the letter must include and gives the debtor 30 days to respond. For company debtors, a clear letter giving a reasonable deadline is still expected. Many debts are paid at this stage.

Interest and costs

Business-to-business debts usually carry statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998, plus fixed compensation depending on the size of the debt, unless your contract says otherwise. Adding these to your letter often concentrates minds.

Going to court

Money claims can be issued online. Claims generally up to £10,000 are dealt with in the small claims track, where each side usually bears its own legal costs. Larger claims go to the fast, intermediate or multi-track, where the winner usually recovers a contribution to legal costs. If the debtor doesn’t respond, you can ask for judgment in default.

Insolvency routes

For undisputed debts, a statutory demand can lead to bankruptcy proceedings (for individuals) or a winding-up petition (for companies), subject to minimum debt thresholds. These are powerful but blunt, and if the debtor is insolvent you may get little back. They’re not for disputed debts.

Is it worth it?

Before spending money, check whether the debtor is still trading, has assets, or has other creditors chasing them. Companies House and the Insolvency Service can help. A judgment against someone with no money is just a piece of paper.

SRA-regulated firms have to publish price information for debt recovery claims up to £100,000, so you can compare fixed fees.

Common questions