What you should think about before bringing a small debt claim

Winning a small debt claim is only useful if you can actually collect the money. Before you file, ask yourself these five questions.

Do you know where the debtor is?

You need a current address to serve court documents. If you can't serve the claim, it goes nowhere.

For businesses, check Companies House for their registered address and latest filings. For individuals, check recent correspondence or the electoral roll. If the address you have is out of date, sort this out before you file — otherwise you'll waste court fees and time.

Can they actually pay?

A court judgment against someone with no money or assets is just a piece of paper. Before you claim, think about how you'd enforce a judgment if you won:

• Are they employed? An Attachment of Earnings Order can deduct money from their wages.
• Do they own property? A Charging Order secures the debt against their house or land.
• Do you know where they bank? A Third Party Debt Order can freeze and seize funds directly from their account.
• Do they have valuable assets? A Warrant of Control sends bailiffs to seize goods.

If the answer to all of these is "no" or "I don't know," it may be worth investigating before committing to court fees. For more on these options, see our guide on enforcement.

Is your evidence solid?

Courts decide cases on evidence, not on who shouts loudest. Make sure you have:

• The contract or agreement (even if it's just an email exchange)
• Invoices with clear payment terms
• Proof of delivery or service completion
• Correspondence showing you chased the debt and the debtor's responses (or silence)

This documentation is essential for preparing your claim forms. If you don't have a written agreement or your records are patchy, your case is weaker — though not necessarily hopeless.

What defence might they raise?

Think about what the debtor is likely to say. Common defences include:

• "The work was poor quality" or "the goods were faulty"
• "I never received the invoice"
• "I already paid"
• "That's not what we agreed"

Have your counter-evidence ready for each. Keep records of all communications, delivery confirmations, and sign-offs from the start of any business relationship — they become invaluable later.

One tip: don't pre-empt potential defences in your letter before action. You might give the debtor ideas they hadn't thought of.

Is the relationship worth preserving?

A court claim changes the dynamic permanently. If this is a long-term client who's hit a rough patch, or a business partner you want to keep working with, consider whether negotiation or mediation might get you paid while keeping the relationship intact.

If they're simply refusing to pay what they owe, that decision is easier.