Small Claims Debt Recovery Solicitors
Small claims do not always feel small when you are the person or business owed the money. An unpaid invoice, disputed payment or debt that has been outstanding for months can affect cash flow and take considerable time to resolve.
Equally, if someone is pursuing you for money you do not believe you owe, receiving a letter before action or claim form can be concerning, particularly when there are strict deadlines for responding.
AFG Law's Dispute Resolution solicitors advise both claimants and defendants in small claims debt matters worth up to £10,000. We can assist from the initial pre-action stage through to issuing or defending proceedings and preparing for a hearing.
Speak with Our Specialist Debt Recovery Solicitors
Small claims debt recovery up to £10,000
Claims worth £10,000 or less will commonly be allocated to the small claims track of the County Court. The small claims procedure is intended to provide a proportionate way of resolving lower-value disputes. However, there are still court rules, deadlines and evidential requirements to follow.
Common claims can include unpaid invoices, contractual debts, loans that have not been repaid, disputes over goods or services and other money claims. We can act whether you are the claimant seeking payment or the defendant disputing the debt.
Our fixed-fee service is intended for relatively straightforward small claims debt disputes. The fees set out below are subject to the matter meeting our eligibility criteria.
Stage 1: Letter before action and starting the claim
Before issuing court proceedings, the parties are normally expected to follow appropriate pre action conduct. Depending on the parties involved and nature of the debt, a particular pre-action protocol may apply. It is important to follow the correct procedure rather than simply issuing proceedings immediately after payment becomes overdue.
A letter before action formally sets out the claim, the amount being sought and what the other party needs to do to avoid proceedings. For eligible small claims debt matters, our Stage 1 fixed fee is:
£400 + VAT + disbursements
Stage 1 includes:
- Reviewing the matter and relevant documentation.
- Preparing the letter before action.
- Drafting the claim form.
- Filing the claim.
The relevant court fee is an additional disbursement and will depend on the amount being claimed.
Where appropriate, proceedings may be issued using the government's online money claims services. Money Claim Online (MCOL) continues to apply to eligible claims, while other money claims may be started using the newer online service operated through HM Courts and Tribunals Service.
What happens after a claim is issued?
Once the claim has been served, the defendant has a limited period in which to respond. Under the usual procedure, a defendant generally has 14 days from service to respond. If an acknowledgement of service is filed, the defendant will generally have 28 days from service to file a defence.
The defendant may admit the whole claim, admit part of it or dispute it. If no response or defence is received within the applicable deadline, the claimant may be able to request judgment in default.
Stage 2A: Judgment where no defence is filed
If the defendant does not file a defence, it may be possible to obtain judgment without the matter proceeding to a contested hearing. Our costs for dealing with judgment at this stage will be discussed with you based on the circumstances of the claim.
Obtaining judgment means the court has formally determined that the money is payable. However, it does not necessarily mean the debtor will pay voluntarily. If payment is still not made, separate enforcement action may need to be considered.
Stage 2B: Preparing a defended claim for a hearing
If the defendant disputes the claim, the case may need to proceed through the small claims process towards a hearing. For eligible matters, our Stage 2B fixed fee is:
£500 + VAT + disbursements
This stage can include:
- Preparing and dealing with the directions questionnaire.
- Preparing witness evidence.
- Preparing a schedule of loss where appropriate.
- Preparing the matter for the hearing.
Any applicable court fees and other disbursements are payable separately.
Our fixed fee is based on a straightforward small claim that falls within the scope described below. If the dispute becomes more complex, we will discuss the position and any additional costs with you before undertaking work outside the agreed scope.
What is included in our small claims fixed fees?
Our fixed fees are designed for relatively straightforward debt matters worth up to £10,000.
They are offered on the basis that the case:
- Does not involve a counterclaim.
- Does not require expert evidence.
- Does not require separate court applications.
- Involves no more than two witnesses.
If a counterclaim is brought, an expert becomes necessary, an application needs to be made or the matter otherwise develops beyond the agreed scope, additional work will need to be assessed and costed separately.
We will explain this to you if circumstances change during your case.
Can a small claim be settled without a hearing?
Yes, and going to court does not prevent the parties from reaching an agreement. The court rules encourage parties to consider Alternative Dispute Resolution (ADR) and other ways of resolving disputes without requiring a final hearing.
For many claims worth up to £10,000, the Small Claims Mediation Service operated by HM Courts and Tribunals Service plays an increasingly important role.
Mediation gives the parties an opportunity to try to reach an agreement with the assistance of a mediator. The mediator does not decide who is right or wrong. Their role is to help explore whether an acceptable settlement can be reached.
A successful settlement can avoid the additional time, cost and uncertainty associated with a hearing.
What evidence will I need?
Good evidence can make a significant difference to a small claims debt dispute. For a claimant, this might include contracts, invoices, purchase orders, bank records and correspondence showing that payment was requested.
For a defendant, evidence may be needed to demonstrate why the amount is disputed. For example, you may argue that the work was not completed, goods were defective, the amount claimed is incorrect or payment has already been made.
Emails, WhatsApp messages and other correspondence can therefore be important. Providing your solicitor with the relevant documents and the correct contact details, including an email address where appropriate, can help us understand the history of the dispute.
What happens if I win but the debtor doesn't pay?
Obtaining judgment and recovering the money are not always the same thing. If the debtor does not pay voluntarily, enforcement action may be necessary.
Enforcement is not included within our Stage 1 or Stage 2 fixed fees. The appropriate enforcement method will depend on the particular judgment and what is known about the debtor's financial circumstances. We therefore assess and quote for enforcement separately.
Possible enforcement methods can include a warrant of control, allowing County Court enforcement agents to seek payment and potentially take eligible goods.
Depending on the circumstances, an attachment of earnings order may be appropriate where the judgment debtor is employed, while a charging order can potentially secure a judgment against property or land.
Another possibility is a third party debt order which can potentially be used where a third party, such as a bank, holds money belonging to the debtor.
Each option has its own requirements and additional court fees. We can provide legal advice about
Are there time limits for recovering a debt?
Yes, you should not leave an unpaid debt indefinitely before seeking advice.
Limitation periods apply to civil claims. Many straightforward contractual debt claims are subject to a six-year limitation period under the Limitation Act 1980, although the applicable deadline will depend on the nature and circumstances of the claim.
The County Courts Act 1984 can also be relevant to County Court money judgments, including provisions concerning interest and enforcement. If you are approaching a potential limitation deadline, obtaining legal advice promptly is important.
Why use a solicitor for a small debt claim?
The small claims procedure is intended to be accessible to people without legal representation, so instructing a solicitor is not compulsory. However, dealing with the claim yourself means taking responsibility for understanding the applicable procedure, preparing evidence and complying with deadlines.
A solicitor can also provide an objective assessment of the merits of the case. Sometimes the most valuable advice is not simply how to issue proceedings, but whether doing so makes financial sense.
A £5,000 judgment against someone who has no realistic means of paying it may have considerably less practical value than a negotiated settlement with a debtor who can make an affordable payment.
Likewise, defendants can benefit from obtaining advice at an early stage rather than ignoring correspondence and allowing the situation to escalate.
Speak to AFG Law About a Small Claims Debt Matter
Whether you are trying to recover money or have received a demand or County Court claim for a debt you dispute, dealing with the matter early can give you more options.
AFG Law's Dispute Resolution team can advise either claimants or defendants on small claims debt matters worth up to £10,000.
We can assist with the initial letter before action and pre action conduct, issuing or responding to proceedings, preparing a defended matter for a hearing and considering the appropriate next steps if a judgment remains unpaid.
Contact AFG Law's Dispute Resolution team to discuss your small claims debt matter and find out whether our fixed-fee service is suitable for your case.