Question 1

How much does it cost to recover a debt?

Accepted Answer

At Tyndel Solicitors we offer fixed fees for most debt recovery work, so you know the cost before we start. The price depends on the stage your case reaches - a letter before action costs less than court proceedings or enforcement. Court fees are payable separately and can usually be added to the amount claimed from the debtor.

Question 2

How long does debt recovery take?

Accepted Answer

If the debtor responds to a letter before action, payment may arrive within days or weeks. Undefended court claims can lead to judgment within a few months. Defended claims take longer, and enforcement depends on the debtor's assets and circumstances.

Question 3

What is a statutory demand?

Accepted Answer

A statutory demand is a formal written demand under the Insolvency Act 1986 for an undisputed debt of £750 or more. If the debtor fails to pay or apply to set it aside within 21 days, it can form the basis of a bankruptcy petition (individual) or winding-up petition (company).

Question 4

Can I claim interest on late commercial payments?

Accepted Answer

Yes. Under the Late Payment of Commercial Debts (Interest) Act 1998, you can claim statutory interest on overdue business-to-business debts at 8% above the Bank of England base rate, plus fixed compensation of between £40 and £100 depending on the amount owed.

Question 5

How do I enforce a judgment if the debtor won't pay?

Accepted Answer

Obtaining judgment is only the first step. Enforcement options include High Court enforcement officers, attachment of earnings orders, third-party debt orders, charging orders over property and, in some cases, insolvency proceedings.

Question 6

What can I do if I'm being chased for a debt I don't owe?

Accepted Answer

Don't ignore the claim. You may have a defence if the debt is statute-barred under the Limitation Act 1980, disputed, affected by set-off, or based on defective goods or services. Seek advice before the response deadline expires.

GMC Complaints Surge 25%: Breaking Down the 2025 Fitness to Practise Data and What It Means for Doctors

HC 259 Takes Effect: What the 3 August 2026 Immigration Rule Changes Mean for Visa Holders and Employers

Navigating the ‘Fairer End to Relationships’ Consultation: What the 2026 Family Law Reforms Mean for Your Finances