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JimLawyer
JimLawyer, Solicitor
Category: Law
Satisfied Customers: 10092
Experience:  Senior Associate Solicitor
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We have £23,000 debt with a large customer who are back

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We have £23,000 debt with a large customer who are back working but ignoring us, send registered letter to company secretary before Covid-19 and after
JA: What state are you in? And have you consulted a local attorney?
Customer: Not yet, as i understand court not working
JA: Has anything been officially filed? If so, what?
Customer: None, as not sure will work
JA: Anything else you want the Lawyer to know before I connect you?
Customer: No

Hello, this is Jim, a dual-qualified lawyer (UK & Republic of Ireland) and happy to help you today.

The money claims site is working so I will set out how to progress this

It could be the case that they are struggling due to Covid but in any event, the contract is still in place, so I would recommend that you send the customer a formal letter before action to demand payment within 30 days and say that if they do not pay you, you will issue county court proceedings against them. See attached template as an example of what to say. Please let me know if you cannot see the letter which I have uploaded. You will need to tailor this letter to your situation.

You will need to register at www.moneyclaim.gov.uk so that you are ready to issue the claim in the event they dispute the claim and do not pay you. The website is very user-friendly and you would not need a lawyer to use the money claim site. A hearing may be necessary if the court thinks that oral evidence is required to dispose of the case.

Claims between £10,000 and £25,000 are subject to fixed costs only so if you lose then the risk is minimal. Further, the money claim website allows you to sue for an amount up to £100,000.

You would claim the sum for the loss, the court issue fee (details of the money claim fees are listed here at page 5: www.gov.uk/make-court-claim-for-money/court-fees) and court interest which is 8% calculated on a daily rate from the date of loss to date of court judgment. The site allows you to calculate the interest and add it to the claim.

If you win then once you have the CCJ from the court the defendant has 14 days to pay in full. If they do not then it gets registered with the credit agencies after 30 days. You can also enforce the CCJ with the county court bailiffs or transfer the debt to the High Court for a small additional fee assuming the total amount owed is at least £600 and you can use the high court enforcement officers who have greater powers than county court bailiffs. The transfer fee is added on to the debt and payable by the defendant.

There are other enforcement methods which I can help with, including bank account freeze, charging order on their property (and then apply to force a sale), application to wind up the company if £750 or more is owed (if suing a limited company), apply to summons them to court for questioning, attachment of earnings order against their employer (if employed), apply to bankrupt them if they owe £5,000 or more - all of which can ensure you are actually repaid the money.

You may find they just pay you after receiving the letter before action – hopefully they will want to avoid litigation.

I hope this helps - if you can please accept the answer and give me a 5 star rating (there should be a button at the top of your screen to do this), I can answer follow up questions at no extra charge and Just Answer will credit me for helping you today.

Many thanks,

Jim

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