Commercial Disputes and Debt Recovery

Debt recovery

An unpaid invoice is a cash-flow problem first and a legal problem second. Our debt recovery process is designed to get paid quickly and to escalate only when it is worth it:

1. Letter before action

   A formal letter from solicitors, compliant with the Practice Direction on Pre-Action Conduct (or the Debt Protocol for individuals), claiming the debt, statutory interest at 8% above base rate and compensation under the Late Payment of Commercial Debts (Interest) Act 1998. A large share of debts are paid at this stage.

2. Statutory demand

   For undisputed debts of £750 or more owed by a company, a statutory demand gives 21 days to pay before a winding-up petition can be presented. It is a powerful tool but must not be used where the debt is genuinely disputed.

3. County Court claim

   Issued online for money claims, with default judgment if the debtor does not respond. Court fees are recoverable from the debtor.

4. Enforcement

   High Court enforcement officers, charging orders, third-party debt orders and attachment of earnings, chosen according to the debtor's assets.

Commercial disputes

Contract disputes, disputes with suppliers or customers, partnership and shareholder disputes, disputes about agents and distributors, and claims against professionals all follow the same principle: establish the facts and documents early, assess the merits honestly, and choose the route that gets a commercial result. We advise on:

• Strategy and merits, including a written assessment of prospects and likely costs before you commit.
• Pre-action correspondence and disclosure.
• Mediation and other alternative dispute resolution, which the courts now expect parties to attempt and can order.
• Issuing or defending proceedings in the County Court or High Court, including the Business and Property Courts.
• Injunctions where urgent protection is needed, for example to stop the misuse of confidential information.
• Settlement, including Part 36 offers that protect your position on costs.

We also act for shareholders and directors in unfair prejudice petitions and disputes about company control; see shareholder agreements and governance.

Costs and funding

Litigation costs are the first thing we discuss. You receive an estimate for each stage, updated as the case develops. The general rule is that the loser pays a proportion of the winner's costs, but recovery is rarely complete, and on the small claims track it is minimal, so we advise on proportionality before any step. For strong, well-documented debt claims we consider conditional fee arrangements and fixed-fee stages. Court fees for money claims are on a sliding scale from £35 to 5% of the claim value (capped at £10,000).

Frequently asked questions