How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ben Jones Your Own Question
Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 50209
Experience:  Qualified Solicitor
29905560
Type Your Law Question Here...
Ben Jones is online now

A business client (ltd company) has not paid overdue invoices.

This answer was rated:
★ ★ ★ ★ ★

A business client (ltd company) has not paid overdue invoices. I intend to send them a letter giving notice of legal action. How much notice do I need to give?

There are also some more current invoices which are not yet overdue. Can I include these in the value I give notice/sue for, or do I need to wait until they also become overdue?

Ben Jones :

Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today. How much is currently owed from the first invoice?

Customer:

The total due is £4k, there are a a number of invoices and expenses claims overdue totalling £3k, does that help?

Ben Jones :

Thank you. Let me get my response ready please

Ben Jones :

Whenever a dispute arises over money owed by one party to another, the debtor can be pursued through the civil courts for recovery of the debt. As legal action should always be seen as a last resort, there are certain actions that should be taken initially to try and resolve this matter informally and without having to involve the courts. It is recommended that the process follows these steps:


 



  1. Reminder letter – if no reminders have been sent yet, one should be sent first to allow the debtor to voluntarily pay what is due.

  2. Letter before action – if informal reminders have been sent but these have been ignored, the debtor must be sent a formal letter asking them to repay the debt, or at least make arrangements for its repayment, within a specified period of time. A reasonable period to demand a response by would be 10 days. They should be advised that if they fail to do contact you in order to resolve this matter, formal legal proceedings will be commenced to recover the debt. This letter serves as a ‘final warning’ and gives the other side the opportunity to resolve this matter without the need for legal action.

  3. If they fail to pay or at least make contact to try and resolve this, formal legal proceedings can be initiated. A claim can be commenced online by going to www.moneyclaim.gov.uk. Once the claim form is completed it will be sent to the debtor and they will have a limited time to defend it. If they are aware legal proceedings have commenced it could also prompt them to reconsider their position and perhaps force them to contact you to try and resolve this.


 


Whatever correspondence is sent, it is always advisable to keep copies and use recorded delivery so that there is proof of delivery and a paper trail. The court may need to refer to these if it gets that far.


 


As to the other invoices, if they are not yet due then they are not a debt that you can pursue yet, but if over time it becomes apparent that they will not pay them, you can try and add them to the existing claim.

Ben Jones and other Law Specialists are ready to help you
Ask your own question now