Legal Options Available for Small Scale Disputed UK Debt Recovery

The amount of debt that a debtor has to pay you will determine the court procedure that can be followed for UK debt recovery. Generally, you should be able to recover small to medium debts through the County Courts with the help of a debt recovery agency. However, if you are looking to recovering larger claims; you will have to pursue them in the High Court.

If the disputed debt owed is under £10,000, the court will allocate the case to the “small claims track.” Subsequently, resolving the dispute this way will prove to be cost-effective, informal and simple. However, if the debt owed is higher than £10,000 but under £25,000, you and your debt recovery agency will have to deal with it in the county court by the “fast track” procedure.

Similarly, the ‘multi-track’ procedure will have to be utilized if the money owed is over £25,000, and most likely the High Court is going to issue it. The procedures involved in such a case will be more complicated and formal, and prove to be considerably expensive. There is another alternative that your debt recovery agency could advise you to consider as long as the debt you wish to collect is over £750, which is to get a statutory demand issued. If the debtor does not pay the debt within 21 days, the court can be petitioned to make the debtor bankrupt or wind up the defaulting company.

Unlike standard court procedures, this can prove to be more effective. However, if there is an authentic dispute, then you should avoid using this procedure. Is The Small Claims Procedure Costly, Difficult & Time Consuming? Usually, it is relatively straightforward if you wish to recover a disputed debt using the small claims procedure. The forms and guidance leaflets required can be obtained quite conveniently from a local county court.

If the defendant still does not pay back the money owed, then further action will have to be taken so that judgement can be enforced. Generally, the most time-consuming element for your debt recovery agency when pursuing your claim will be completing the court forms and collecting evidence. Moreover, a hearing date is often issued after 3 to 6 months.

However, despite these shortcomings, the assistance of a debt recovery agency can prove to be worth it. This is particularly true because debt recovery agencies utilize their own UK debt recovery methods to recover small-scale undisputed debts before turning to the legal option mentioned above.