As a business owner, if a client does not pay for the work you have done, it can affect the operation of your business. It can disrupt your cashflow, affect your employees’ wages and over time affect your ability to reinvest and grow as a business. However, if you have carried out work or a service for a client and have not been paid, we have you covered. Below, you will find some legal avenues to get paid money you are owed.
A late payment demand letter is a formal letter that is sent to a client politely requesting outstanding payment before commencing legal proceedings. This letter states the exact total due, a summary of what has happened and outlines which legal proceedings will take place if the client fails to pay by a certain date.
Statutory demand is a formal written notice from you (the creditor) to an individual (the debtor) requesting payment if it is more than £750. The letter must outline both the creditors and debtor’s details and details of the debt. If the debtor does not respond in 21 days, you can apply for a bankruptcy order against them.
You can submit a paper claim through the county court system by completing a claim form, paying the relevant court fee (if applicable) and sending it to the court by post.
A strong case depends on your evidence. Strong evidence includes but is not limited to:
MCOL is an online service that allows individuals to claim a fixed amount of money up to £100,000. It is designed for the process to be simpler and faster than submitting paper claims by post.
If a claim has been issued against a debtor, either by post or online (as above) and the debtor failed to respond (i.e. fail to file and serve an ‘Acknowledgement of Service’ or a ‘Defence’) within the timeframe given, then a ‘Request for Default Judgment’ can be submitted to the court.
If it is granted, then a County Court Judgment (CCJ) will be registered against the debtor and a creditor will have 6 years from the date of the CCJ to enforce and seek to recover their monies. This can be done as follows:
