Debt Recovery Law — Expert UK Legal Advice

Debt recovery law comprises the legal rules and procedures that allow a creditor (an individual or business owed money) to pursue payment where a debtor has failed to pay what is owed under a contract or agreement.

In the UK, these processes are governed by a combination of statute and court procedure. Commonly relevant legal frameworks include:

Debt recovery also involves compliance with the Solicitors Regulation Authority’s (SRA) rules, particularly where solicitors or third parties are engaged to carry out debt collection work. These rules ensure fair practice and transparency in all interactions with debtors.

You may require expert legal support when:

Our solicitors can support you at any stage – from drafting initial demand letters to pursuing enforcement action or insolvency routes.

Pro tip: For high-value or complex disputes, early legal intervention increases the likelihood of recovery and helps safeguard commercial relationships.

Below is a step-by-step overview of the standard commercial debt recovery process:

1. Pre-Action: Letter Before Action (LBA)

A formal Letter Before Action is sent to the debtor explaining the debt, the amount owed, any interest or costs, and a timeframe to settle (commonly 14–30 days). This is a pre-action requirement before issuing court proceedings and often results in settlement without litigation.

2. Issuing Court Proceedings

If the debtor does not pay, your solicitor can issue a claim in the County Court. The claim form sets out the debt and supporting documents. The debtor typically has 14 days to respond.

Depending on the amount, the case may be allocated to:

• Small Claims Track
• Fast Track
• Multi Track

3. Judgment: County Court Judgment (CCJ)

If the court finds in your favour – either because the debtor fails to respond or after a hearing – a County Court Judgment (CCJ) will be entered. A CCJ is a formal court order requiring the debtor to pay.

4. Enforcement of Judgment

Obtaining a CCJ may not be enough if the debtor still does not pay. Enforcement options include:

• Bailiffs / certificated enforcement agents (to seize goods).
• Attachment of earnings orders (deduct from wages).
• Charging orders (secure debt against property).
• Insolvency action such as statutory demands, winding-up in company cases or bankruptcy applications in individual cases.

Creditor’s Rights

Debtor’s Protections

Debtors are protected against harassment or unfair demands and are entitled to contest the debt’s validity before legal proceedings proceed.

Our team ensures all actions are fair, proportionate and compliant with professional conduct standards.

A qualified solicitor adds value that debt collection agencies typically cannot:

While some agencies can chase debts at a pre-action stage, only solicitors can issue claims and enforce judgments on your behalf.

There are differences between commercial debt (B2B) and consumer debt in the UK:

If your matter involves a consumer debt, our team will guide you through the specific legal requirements.

Generally, claims must be issued within six years of the payment becoming due for contractual debts in England & Wales. For debts created by deed, the limitation period may extend to 12 years.

We comply with the SRA’s transparency rules on pricing and client care. You will receive clear information about likely costs, recoverability of fees, and the associated risks before we act.

For more on our fee structure for litigation and debt recovery, see our fees page
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