How to Recover a Debt in the UK — Complete Guide 2026

Overview of debt recovery

Recovering money owed to you in England and Wales follows a structured legal process. Jumping straight to court is rarely effective — and courts now expect creditors to follow the Pre-Action Protocol for Debt Claims before issuing proceedings. Failure to do so can result in cost penalties even if you win.

The process in outline: Letter Before Action → 30-day response period → (Mediation if disputed) → County Court claim → Judgment → Enforcement.

The Letter Before Action

The Letter Before Action (LBA) is the formal demand for payment that starts the debt recovery clock. It must comply with the Pre-Action Protocol for Debt Claims (updated 2017). A compliant LBA:

• States the amount owed and how it was calculated
• Gives a deadline for payment — typically 30 days
• States what action you will take if payment is not made (court proceedings)
• Provides the mandatory Information Sheet and Reply Form as annexes
• Provides a Financial Statement form if the debtor is an individual

Pre-Action Protocol requirements

The Pre-Action Protocol for Debt Claims applies to all claims by businesses against individuals (including sole traders). Key requirements:

• Send the LBA with all three annexes before issuing proceedings
• Allow 30 days for the debtor to respond
• If the debtor responds disputing the debt, you must attempt to resolve the dispute before going to court
• Consider mediation if the debt is disputed — courts expect parties to try to settle
• If the debtor asks for more information, provide it within a reasonable time

Business-to-business debts (where the debtor is a limited company or LLP) are not covered by the Protocol in the same way, but a formal LBA is still best practice.

Statutory interest and late payment charges

County Court claim process

1. Issue the claim — online at moneyclaims.service.gov.uk for claims under £100,000. Fee: sliding scale from £35 (under £300) to £455 (£5,000–£10,000).
2. Defendant is served — court serves the claim form. Defendant has 14 days to respond.
3. If defendant admits the claim — request judgment. Court issues a County Court Judgment (CCJ).
4. If defendant disputes — case is allocated to Small Claims (under £10,000), Fast Track, or Multi Track depending on value.
5. Hearing — Small Claims hearings are informal. You can represent yourself. Costs are limited even if you win.
6. Judgment — if you win, you receive a CCJ. This affects the debtor's credit file and gives you enforcement powers.

When the debtor ignores everything

If the debtor ignores your LBA and then ignores the court claim, you win by default judgment. Once you have a judgment, enforcement options include:

• Warrant of Control — bailiffs (High Court Enforcement Officers for larger debts) attend and seize goods. Fee: £75 issue fee, HCEOs charge commission on recovery.
• Third Party Debt Order — freezes the debtor's bank account and pays money directly to you. Effective but requires knowing their bank.
• Charging Order — secures the debt against any property the debtor owns. When the property is sold, you are paid from the proceeds.
• Attachment of Earnings Order — deductions made directly from the debtor's salary by their employer.
• Insolvency proceedings — for debts over £750, you can petition for the debtor's bankruptcy (individuals) or winding up (companies). The threat alone often prompts payment.