If you are owed money by an individual or a business, you can make a court claim to recover it. We take a look at the process involved.
What Is A Small Claims Court?
There is no specific court for small claims and applications are made to a county court. A small claim can often be made online. Alternatively, it is also possible to make the claim by post. You may need to attend court at some stage, but the process can be started remotely.
What Counts As A Small Claim?
County court cases are allocated to a particular track, namely the small claims track, fast track or multi-track. Generally, where a claim is for less than £10,000 and the facts are relatively straightforward, a claim will be allocated to the small claims track.
This track is designed for use by individuals who are representing themselves and is fairly simple to use, although you can also instruct a solicitor to represent you if you wish.
Legal costs are not recoverable, but if you win you could be awarded some of your expenses, including the costs of issuing the claim, the court fees and witnesses’ expenses if there are any.
Deciding Whether Or Not You Have A Claim
You need to be able to prove in court that you are owed the money and that it has not been paid. This means that you will need evidence of the debt, usually in the form of paperwork such as contracts and invoices. You could also ask witnesses to make statements in support of your claim.
You should also consider whether it is worth making a claim. For example, if the debtor is genuinely unable to pay, there is little point in obtaining a judgement against them.
How To Make A Small Claim
You will need to fill in the details of your claim either online or on a paper form. If you know how much you will be claiming, you can usually use the online option. If you do not have an exact figure for the claim, you will need to fill in a form and submit it by post.
You will need to provide the details of the person against whom the claim is being made, including their name, address and email address.
Brief details of the claim should also be added, together with the value of the claim. You can include particulars of the claim, which is all of the information detailing what you are owed and why you are owed this. Alternatively, you can mark the particulars of the claim ‘to follow’ if you need a little more time to prepare them.
If you need help ensuring you have provided all of the information and that you have a valid case, you can speak to a solicitor who specialises in financial claims and who will be able to put together the particulars of the claim on your behalf.
Standard Fees
When you submit your claim, you need to pay the court fee. This is based on the amount you are claiming plus interest. Interest is payable at 8% per annum on the amount that is owed to you. To work out the interest figure, you need to work out how many days the debt has been overdue.
If the amount owed to you is a commercial debt owed by a business, the rate is 8% per annum plus the Bank of England base rate for business-to-business transactions, unless your contract with the debtor names a different rate of interest.
Court fees are as follows:
| Claim amount, to include interest | Fees |
| Up to £300 | £35 |
| £300.01 to £500 | £50 |
| £500.01 to £1,000 | £70 |
| £1,000.01 to £1,500 | £80 |
| £1,500.01 to £3,000 | £115 |
| £3,000.01 to £5,000 | £205 |
| £5,000.01 to £10,000 | £455 |
What Is A Counterclaim and How Does It Work?
If the person you are claiming against believes that you owe them money, they can make a counterclaim against you by filling in a court form.
They will need to provide evidence showing why you owe them money and you may both have to attend court to give evidence.
Alternative Options
Instead of making a claim, there are two alternative options you can explore.
Seeking Legal Advice
You can ask a solicitor to send a formal letter to the other party demanding that they pay the amount outstanding. This can be effective as they may see that you are serious about collecting the amount owed once a law firm is involved.
A solicitor will also be able to negotiate on your behalf where necessary to try and reach an agreement about how much will be paid and when payments will be made.
Mediation
Another alternative to litigation is mediation. This can be a quicker and more cost-effective way of resolving a financial disagreement than attending court. If both you and the other party agree to try mediation, it will be arranged for you by the court's service.
A neutral mediator will speak to you both by phone to try and help you find an acceptable solution. Unlike court, a result will not be imposed upon you. You will have the opportunity to agree to a compromise, but you can decline this and still go to court.
Contact Our Small Claims Solicitors For Advice
If you are owed money and would like to make a legal claim to recover it, our litigation solicitors can advise you and commence proceedings on your behalf. We can also write a formal pre-action letter and attempt to negotiate an agreement.
Email us at info@witansolicitors.co.uk or fill in our contact form and we will be happy to help you. We have offices in Birmingham and Northampton.
