Small claims court
Discussion
A statutory demand doesn't do anything in and of itself - it's simply a pre-cursor to presenting a bankruptcy petition. If the debtor doesn't pay within 21 days of the SD being served, you are entitled to present the petition. This isn't a cheap route - you have to pay a fee (although from memory part of that is a deposit which may ultimately be recoverable) on filing the petition with the court.
If the petition proceeds and he is declared bankrupt, you will rank as an unsecured creditor along with anyone else to whom he owes money - so, for example, if there is £10K to pay off all the unsecured creditors and £100K worth of debts, you will only recover 10% of what you are owed. You also take your place in the queue behind any secured creditors and preferential creditors (the tax man, notably).
The small claims track of the county court is for disputes up to £5K. The main thing to note about it is, win or lose, you won't be able to recover any legal costs incurred. It's very informal and designed to be used by people acting on their own behalf who have no experience of the legal system.
You can file your claim online with Money Claims Online - can't remember the URL but you'll find it readily enough with Google.
If the petition proceeds and he is declared bankrupt, you will rank as an unsecured creditor along with anyone else to whom he owes money - so, for example, if there is £10K to pay off all the unsecured creditors and £100K worth of debts, you will only recover 10% of what you are owed. You also take your place in the queue behind any secured creditors and preferential creditors (the tax man, notably).
The small claims track of the county court is for disputes up to £5K. The main thing to note about it is, win or lose, you won't be able to recover any legal costs incurred. It's very informal and designed to be used by people acting on their own behalf who have no experience of the legal system.
You can file your claim online with Money Claims Online - can't remember the URL but you'll find it readily enough with Google.
I took a would be client to teh small claims ages back. It's dead easy - get the forms from your local county court- or download them, pay the fee and send the stuff off. You have to plead your case in front of a judge - but it's all very informal. The downside is that you have to go to the nearest court to teh defendent ( Newton Abbott in my case)
You can claim expenses - but not legal bills, but on your claim indicate you want interest on the debt at county court rates
Some defendents don't respond - if they don't you can ask for judgement in their absence
You can claim expenses - but not legal bills, but on your claim indicate you want interest on the debt at county court rates
Some defendents don't respond - if they don't you can ask for judgement in their absence
Jasper Gilder said:
Some defendents don't respond - if they don't you can ask for judgement in their absence
And you will probably get judgement in your favour. And if they don't want to pay, ie are 'professional non-payers' they still won't. They will just add your CCJ to their collection...
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