Litigation & Disputes

Business debt recovery solicitors in West Hampstead, London

Recovering money owed to your business, with fixed fees for undisputed business-to-business claims.

Overview

When a business customer does not pay, recovery usually follows a set sequence: a formal demand, a court claim if the debt remains unpaid, and enforcement if a judgment is not paid.

If the debtor disputes the debt, the claim becomes contested litigation. We will give you a frank view of whether it is worth pursuing and what continuing is likely to cost.

Who we act for

This service is for businesses that are owed money by another business.

Owner-managed and growing businesses with invoices that remain unpaid after the usual reminders
Suppliers of goods or services owed money by a business customer under a contract
UK-based and internationally-owned businesses owed money by a debtor in England and Wales
Businesses whose customer has begun to dispute an invoice

Matters we handle

Unpaid invoices
Sums due for goods supplied or services provided that remain unpaid after the agreed payment date.
Letters before action
A formal demand setting out the debt, any interest claimed and what will happen if it is not paid. What the letter must contain depends on whether the debtor is a company or a sole trader.
Interest and compensation for late payment
On contracts for goods or services between businesses, the Late Payment of Commercial Debts (Interest) Act 1998 usually allows statutory interest and compensation for recovery costs to be added to the debt.
Court claims and default judgment
Issuing a claim for the debt, interest and any fixed costs, and asking the court to enter judgment if the debtor does not respond in time.
Disputed debts
Where the debtor says the money is not owed, or raises a counterclaim, the claim becomes contested and is charged on an hourly rate basis.

How a matter runs

Review
We check the contract or terms, the invoices and the correspondence, confirm the debtor's correct legal identity and look for signs of a dispute.
Letter before claim: company debtors
Where the debtor is a company or other corporate body, a letter before claim is sent under the Practice Direction on Pre-Action Conduct and Protocols, giving it a reasonable time to pay or respond.
Letter of claim: sole traders
Where the debtor is a sole trader, the Pre-Action Protocol for Debt Claims applies. The letter must contain specified information, enclose a reply form and financial statement, and allow a longer period for a response before a claim is issued.
Issuing the claim
If the debt is still unpaid, a claim is issued at court for the debt, interest and any fixed costs the rules allow, and served on the debtor. A court fee is payable on issue.
Response or default judgment
The debtor may pay, admit the claim and ask for time to pay, or file a defence. If it does not respond in time, judgment can usually be entered without a hearing.
Defended claims
A defence means the claim is contested. We advise on prospects and the cost of continuing, which is charged on an hourly rate basis. On lower-value claims, the legal costs that can be recovered from the debtor are usually limited or fixed by the court rules.
Enforcement
If a judgment is not paid, the court can be asked to enforce it, for example through enforcement agents, a third party debt order against a bank account or a charging order over property.

Fees

Fixed fees apply to straightforward, undisputed claims where the defendant does not contest liability. Court fees are payable to HM Courts and Tribunals Service and are in addition to our fees. Contested litigation is charged on an hourly rate basis. We do not operate conditional fee agreements (CFA / “no win no fee”) or damages based agreements (DBA).

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