How to Take Someone To Small Claims Court

January 29, 2025

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5 min read

How to Take a Late Payer to Claims Court

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If a company that owes you money fails to respond to all efforts to contact them, continually makes excuses to avoid paying or disputes the debt, then your final recourse is to take court action against them, often known as taking the company to 'small claims court'.

The credible threat of ending up in court is often enough to bring the most stubborn of hold-out debtors to the negotiating table, however in some cases it is the only option left.

See how the process works in this infographic
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Going to court is a real pain for the debtor. There's paperwork to fill out. Losing and having a County Court Judgement or CCJ against them will have a severe impact on their credit rating and this will affect their ability to borrow from the bank or take credit from suppliers. It really is in their interest to settle the debt or agree on a payment plan before the courts get involved.

However, for the small number of cases that do end up in court this article outlines how it works.

Costs

The process is not without risk for the creditor. There's a court fee to pay upfront. If you don't win the case you may not get your fee back. If the business denies owing the money, you may have to spend time attending a hearing.

The fee depends on the size of the claim amount, so the debt plus late payment interest and any reasonable costs you wish to add. You can see the current rates here.

The court can order your debtor to pay if they admit to owing the money or don’t respond to the papers.

Most of the time, the issue is settled based on the submission of written materials, without the need for a hearing.

Placing your Claim

To place a claim with the court you need to submit a form and pay the fees. Using the online court service saves money and streamlines the process.

You can add late payment interest and fees to the total.

The person or business who owes you money must respond to your claim within 14 days of receiving it. If you get paid or the debtor makes the offer of a payment schedule that you're happy with you can withdraw the claim at any time.

If you don't get a response you can ask the court to order them to pay.

Going to Court

A court hearing will be necessary if:

the debtor disagrees with the amount or says they don’t owe you any money
you can’t agree with the debtor on a payment schedule

There are additional fees at this stage and a further questionnaire to complete.

You can still talk to the other business to try to reach an agreement before the court hearing. If the claim is worth under £10,000 you can use the court’s small claims mediation service. This is often worth trying because if the judge thinks you've made no effort to agree out of court they might not award costs. If you manage to reach a settlement before the hearing you might get some of the court fees refunded.

If the claim is a small claim (under £10,000), it may be processed without a hearing and only using written evidence.

If there is a hearing you can either represent yourself, or use a solicitor or advisor.

The court will send you a letter with its decision after the hearing. If you disagree with the decision, you have 21 days from the date of the decision to appeal.

Enforcing a Judgment

If they still won’t pay, you’ll need to ask the court to take extra steps to collect the money, called enforcing a judgment. There are further court fees at this stage - these do change so best to check with the court before applying for them.

You can ask for an officer from the company to attend court, to give details of its accounts.

You can then decide on what you need to do to get your money.

1. Send bailiffs to collect payment
You can ask the court to use bailiffs to collect the money. The bailiff will ask for payment within 7 days. If the debt isn’t paid, the bailiff will visit the business to see if anything could be sold to pay the debt.

2. Freeze assets or money in an account
The court can freeze money in the debtor's bank or building society accounts. The court will decide if money from the account can be used to pay the debt.

3. Charge the company’s land or property
You can ask the court to charge the company's land or property. If the land or property is sold, they must pay you before they get their money.

If your judgement is over a certain amount you can instruct High Court Enforcement Officers to help you collect this.

Summary

Pursuing your overdue business debts through the courts is costly and time-consuming. The whole process can take a long time before you get your money and involves you spending money up front. My Credit Controllers can help you avoid ever reaching this point. We offer full or partial debtor book management as an outsourced service..

Useful Links:

Infographic showing how the process of going through the courts works.

Late Payment Interest Calculator

GOV.UK - Making a Court Claim for Money

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FAQs

Find answers to common questions about our debt collection and credit control services.

What are the costs involved in taking a late payer to claims court?

The costs include a court fee, which depends on the size of the debt and any added late payment interest or reasonable costs. If you don’t win the case, you may not recover your court fees. Additional fees may apply if the case progresses to a hearing or enforcement stage.

How long does the claims court process take?

The timeline varies depending on the complexity of the case and the debtor's response. Most claims are resolved through written submissions, but if a hearing is necessary, it can take longer. Enforcement actions, if needed, add more time to the process.

What happens if the debtor still doesn’t pay after a court judgment?

If the debtor doesn’t pay, you can ask the court to enforce the judgment. This may involve sending bailiffs, freezing assets or bank accounts, or placing a charge on the debtor’s property. Additional court fees apply for enforcement actions.