Lawyers Leicester

Leicester Debt Recovery FAQs

What is a statutory demand ?

A statutory demand is a standard document that you can send to the debtor requesting him to pay the debt.  It will include details of the debt and the debtor’s rights.  The debtor will have 21 days to respond to the demand or 18 days to bring a counter-claim.

Are statutory demands useful ?

In the right circumstances, statutory demands can prove to be useful as they force the debtor to take some kind of action.  However, if you do use a statutory demand, you must be prepared to bring legal action, otherwise the debtor may interpret the demand as a groundless threat and become even more difficult to contact.  The minimum amount for starting bankruptcy proceedings is £750, so statutory demands should be generally used for debts larger than £750.

What’s the maximum amount for small claims ?

The minimum amount for small claims is £30.  The maximum is £5,000.

How do small claims differ from regular courts ?

Small claims are generally less formal, quicker and cheaper than regular courts.   Whilst evidence does not have to be given under oath, you will be expected to exchange witness statements with the other side and fill in application forms, which is the most time consuming part of the process.

How long will I have to wait for a small claims hearing ?

Generally, anywhere between three and six months.

What’s the minimum amount for a fast track hearing ?

The minimum amount is £5,000.  The maximum is £15,000.

How long will I have to wait for a fast track hearing ?

It is difficult to predict, but generally speaking, it will take 30 weeks or more.

What is the minimum amount for multi-track hearings ?

The minimum is £25,000.

How long will I have to wait for a multi-track hearing ?

Again, it is difficult to say, but it could take up to two years.

Judgement was given in my favour but the debtor still refuses to pay.  How can I enforce the judgement ?

• If the debtor has property that can be seized and sold, you could apply for a Warrant of Execution.  Bailiffs will attend the debtor’s property and seize goods and sell them at auction or return them to you.

• You could also seize funds from the debtor’s bank account using a Third Party Debt Order.  Prior to the monies owed being transferred to you, the debtor will have the right to another hearing.

• An Attachment of Earnings Order will demand that the debtor’s employers deducts amounts from the debtor’s wages periodically and pays the monies to you.

• A Charging Order will prevent the debtor from selling certain assets unless the debtors pays you.