How do I chase money that somebody owes me?

Most money owed is recovered at the letter stage, not in court. The value of a letter before action is that it makes the consequence concrete and creates the paper trail a court expects to see. The question to answer before any of it is whether the other side can pay, because enforcement is the part people forget.

Safety

Step by step

1. Check the debt is clear and evidenced.What was agreed, when, for how much, and what you can prove. Messages, invoices, bank transfers and emails all count. An unevidenced verbal agreement is much harder.
2. Check they can actually pay.For a company, look at Companies House for insolvency or dissolution. For an individual, consider realistically whether a judgment could be enforced. This determines whether any of it is worth doing.
3. Ask plainly, in writing, with a date.A polite message stating the amount, what it is for, and a specific date for payment. This resolves a large proportion of cases on its own.
4. Check the time limit.Limitation periods apply to debt claims and differ across the UK. If the debt is old, check where you stand before spending anything on it.
5. Send a letter before action.Set out the facts, the amount, the evidence, what you want, a deadline of a reasonable period, and that you will start court proceedings if it is not met. Send by email and post, and keep proof.
6. Offer a payment plan.Where the person genuinely cannot pay at once, an agreed instalment plan in writing recovers more than an unenforceable judgment.
7. Consider mediation.The small claims process includes a free mediation service, and courts expect parties to have tried to settle. It is quicker than a hearing.
8. Use the online small claims service.Money Claim Online in England and Wales, with equivalent simple procedures in Scotland and Northern Ireland. The fee scales with the amount claimed and is usually recoverable if you win.
9. Prepare the claim carefully.A clear chronology, the documents, and a precise figure. The small claims track is informal but the case still has to be proved.
10. Plan enforcement before you start.Winning is not being paid. Enforcement options — attachment of earnings, a charging order, enforcement agents — each cost more and have their own applications.

Tips

• A letter before action recovers more money than court proceedings do, because it makes the consequence real without either side spending anything.
• Check whether a company still exists at Companies House before spending a penny. Dissolved companies cannot be pursued in the normal way.
• Free mediation through the small claims service settles a lot of disputes faster and with less risk than a hearing.

Common mistakes

• Going to court without checking they can pay — A judgment against someone with no assets and no income is unenforceable, and you will have paid the fee for it.
• Sending angry messages instead of a structured letter — Courts read the correspondence. A calm, factual chain strengthens the case and an aggressive one can undermine it.

If it doesn't work

Questions people ask