Debt Collection Solicitors
If you are owed money by a customer, client, or business and need to recover it, our solicitors, with over 15 years of experience in commercial and consumer debt recovery in England and Wales, can help.
Debt collection in England and Wales is a structured legal process. Whether a debt arises from an unpaid invoice, a loan, a returned cheque, or a broken contract, the law provides creditors with clear routes to recover what they are owed. For most debts, the limitation period under the Limitation Act 1980 is six years from the date the debt became due, so acting promptly matters. Commercial creditors may also be entitled to statutory interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998 where a business debtor has failed to pay on time.
Law Lane Solicitors acts for creditors of all kinds, from sole traders and small businesses to larger commercial entities, from our offices in Stratford, High Holborn, and Croydon. Founded in 2015, we are regulated by the Solicitors Regulation Authority. Our reviews show a 4.95 rating from over 1,200 reviews. The courts in England and Wales actively encourage parties to resolve disputes without litigation where possible, and we approach debt recovery with that in mind: many debts are recovered through a well-drafted letter before action, without any court proceedings.
What does our debt collection service cover?
Debt recovery can involve a single letter before action or a full enforcement campaign culminating in a charging order or bankruptcy petition. Our team advises and acts on all stages:
- Letter before action, drafted to comply with the Pre-Action Protocol for Debt Claims (for claims against individuals) and the general requirements of the Civil Procedure Rules, setting out the sum owed and giving the debtor a reasonable opportunity to respond.
- County Court claims, including preparation and issue of the claim form, the particulars of claim, and applications for default judgment where the debtor does not respond.
- Summary judgment applications, where there is no real prospect of the debtor successfully defending the claim and early judgment can be obtained without a full trial.
- Statutory interest and compensation claims under the Late Payment of Commercial Debts (Interest) Act 1998, which provides for a right to claim interest at eight percentage points above the Bank of England base rate on qualifying commercial debts, as well as fixed-sum compensation.
- County Court Judgments (CCJs) and High Court judgments, advising on enforcement once judgment is obtained.
- Warrants of control (bailiff enforcement), instructing County Court bailiffs or High Court Enforcement Officers to seize and sell a debtor’s goods.
- Attachment of earnings orders, requiring a debtor’s employer to deduct payments from salary.
- Third-party debt orders, freezing money held in a debtor’s bank account and directing payment to the creditor.
- Charging orders over the debtor’s property, securing the judgment debt against land or securities, followed by an order for sale where appropriate.
- Statutory demands and insolvency proceedings, where the debt exceeds the statutory threshold and the debtor is unable to pay, as a precursor to bankruptcy (individual) or winding-up (company) proceedings.
- Instalment agreements and consent orders, recording payment arrangements where the debtor acknowledges the debt and the parties agree terms.
Why choose Law Lane for debt collection?
Recovering a debt is rarely as simple as sending a demand. The Pre-Action Protocol for Debt Claims requires creditors to follow specific steps before issuing a claim against an individual, including providing a letter of claim in the prescribed form and allowing the debtor time to respond and seek advice. A failure to comply with those requirements can result in a costs penalty, even where the creditor wins the claim.
Having solicitors, solicitor-advocates, and barristers available within the same firm means that if a debt dispute escalates to a contested hearing, there is no need to transfer the file or brief external counsel. The person who knows the details of your matter is the person who appears in court. That matters when a debtor raises a counterclaim or alleges a set-off that must be addressed on the papers.
We also act on the commercial reality that not every debt is worth pursuing to a contested trial. We give honest advice on the costs and likely recovery at each stage, so that creditors can make informed decisions about whether to proceed, settle, or write off a debt that is uneconomic to pursue further.
Get in touch
Our debt recovery team acts for creditors at every stage, from the first letter before action to enforcement of a judgment. Book a consultation today and find out what options are open to you.
Phone: 020 7870 4870 or email: info@lawlanesolicitors.co.uk
Law Lane Solicitors is proud to be accredited under The Law Society’s Immigration and Asylum Accreditation.
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Frequently Asked Questions – Debt Collection
How long do I have to chase a debt?
For most debts arising from a contract, the limitation period under the Limitation Act 1980 is six years from the date the debt became due. For debts created by a deed, the period is twelve years. Once the limitation period expires, the debt is statute-barred and cannot be enforced in court. Certain events, such as a written acknowledgement of the debt or a part payment, can restart the limitation period.
What is the Pre-Action Protocol for Debt Claims?
The Pre-Action Protocol for Debt Claims applies to claims by businesses against individuals (including sole traders). It requires the creditor to send a letter of claim in a specified form, setting out the amount owed, the basis of the claim, and details of how the debt arose. The debtor must be given at least 30 days to respond. The court considers compliance with the Protocol when awarding costs, so following it correctly is an essential part of the recovery process.
Can I claim interest on a late commercial payment?
Yes, if your debt arises from a commercial contract for the supply of goods or services. The Late Payment of Commercial Debts (Interest) Act 1998 entitles business creditors to claim statutory interest at eight percentage points above the Bank of England base rate from the date the debt was due. The Act also provides for fixed-sum compensation of between £40 and £100 per debt, depending on the amount owed, plus reasonable recovery costs. These rights can be contracted out of only in limited circumstances.
What is a County Court Judgment?
A County Court Judgment (CCJ) is a court order requiring the debtor to pay the amount owed. Once obtained, a CCJ can be enforced by various methods, including bailiff action, attachment of earnings, or a charging order over property. A CCJ is also registered at the Registry of County Court Judgments, which affects the debtor’s credit rating. If the debt is paid in full within one month of the judgment, the CCJ can be cancelled; after that, it remains on the register for six years even if paid.
What is a charging order?
A charging order is a court order that secures a judgment debt against the debtor’s property, typically their home. Once a charging order is made absolute, the creditor has a secured interest in the property. The creditor can then apply for an order for sale, though courts are reluctant to order the sale of a family home unless the debt is significant and other enforcement methods have been unsuccessful. A charging order also takes effect on any sale of the property, so the debt is paid from the proceeds.
What is a statutory demand?
A statutory demand is a formal written demand for payment of a debt of at least £5,000 (from a business) or £5,000 (from an individual). Serving a statutory demand is often the first step towards a winding-up petition (against a company) or a bankruptcy petition (against an individual). A debtor who cannot satisfy, set aside, or secure the debt within 21 days of service is deemed unable to pay their debts, which is a ground for insolvency proceedings. We advise on when a statutory demand is appropriate and draft the document to ensure it is effective.
Can a debtor avoid a CCJ by disputing the debt?
A debtor who wishes to dispute a debt must file a defence within the time limits set by the Civil Procedure Rules, typically 14 days from service of the claim (or 28 days if an acknowledgement of service is filed). If no defence is filed in time, the creditor can apply for default judgment. If a defence is filed, the court will allocate the claim to a track (small claims, fast track, or multi-track) and give directions for a hearing. We advise creditors on how to respond to defences and counterclaims at every stage.
How much does an initial consultation cost?
We offer a fixed-fee initial consultation for debt recovery matters. At that meeting, we review the documentation underlying the debt, advise on the best route to recovery, and provide a costs estimate for the work. Please get in touch to arrange a time at our Stratford, High Holborn, or Croydon office.
Private Dispute Resolution Team
Sikandar Ali Jatoi
Director, Solicitor AdvocateView Profile | ContactBook Appointment
Neville Langston
Solicitor & Office Manager, Central LondonView Profile | ContactBook Appointment
Afaque Solangi
SolicitorView Profile | ContactBook Appointment
Christian O. Nwaorah
SolicitorView Profile | ContactBook Appointment
Sahil Umar
ParalegalView Profile | ContactBook Appointment
Trung Nam Nguyen
Consultant SolicitorView Profile | ContactBook Appointment
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