What is the small claims process in debt recovery?
The small claims process offers a straightforward way for businesses to recover unpaid invoices or lower-value debts through the County Court. Typically used for claims under £10,000, it’s designed to be more accessible than other legal routes and doesn’t usually involve complex procedures.
It starts with submitting a claim either online or by post. The debtor is given time to respond and may choose to pay, dispute the claim or ignore it. If no response is received, the court can issue a judgment. Where a defence is raised, a short hearing may be scheduled to resolve the dispute.
Because recoverable legal costs are limited in small claims, it’s important to present the case clearly. Well-prepared documents, accurate records and a simple explanation of what is owed can make all the difference to the outcome.
What types of debts can be recovered through small claims?
Small claims can be used to recover many types of unpaid debts, including overdue invoices, bounced payments, unreturned deposits and straightforward breaches of contract. The process is most commonly used by small businesses, sole traders and landlords when the amount owed is under £10,000 in England and Wales.
It’s a practical way to take action when other recovery efforts have failed, particularly for one-off cases where the paperwork is clear and the dispute is relatively simple.
How long does the small claims process take?
Timeframes can vary depending on the complexity of the case and whether the debtor responds. In general, a small claim might take anywhere from three to six months from submission to judgment.
If the debt is admitted or goes unanswered, a County Court Judgment (CCJ) may be issued fairly quickly. If the case is disputed, a hearing could be required. Preparing accurate documents and submitting the claim promptly can help reduce delays.
