Small Claims Court England and Wales: From Dispute to Payment (England & Wales)

Chasing unpaid invoices is exhausting. You've done the work, sent the reminders, and made the phone calls, but your money is still missing. The thought of navigating English and Welsh small claims court procedures feels like yet another obstacle between you and what you're owed.

That's exactly why we built Garfield. As the UK's first SRA-regulated AI law firm, we've helped very many businesses and individuals recover debts through the county court small claims system - without the confusion, without the expensive solicitors, and without the stress.

This guide will show you the complete journey from dispute to oayment. Because here's the truth most guides won't tell you: winning a County Court Judgment (CCJ) is only half the battle. A judgment is great but the end goal is seeing money land in your bank account.

Many individuals and small business owners avoid making a small claim because they fear "legalese" or expensive solicitor fees. However, the small claims system is specifically designed for "Litigants in Person" i.e. people without lawyers. You do not need a law degree to win, but you do need a clear strategy. Before you begin, you must weigh the cost of the court fees and your time against the likelihood of the defendant actually paying up. If you're unsure where to start, read our guide on what the small claims court is and whether it's worth going to small claims court.

Pre-Action Assessment: Eligibility and the Letter Before Action

Before you ever file a claim form, you need to conduct a forensic look at your dispute. The first step isn't legal; it's financial.

The Financial Reality Check

You must assess if the defendant actually has the assets or income to pay a judgment. If you are suing a limited company that has already dissolved, or an individual who is bankrupt, spending money on court fees is essentially throwing good money after bad. A judgment is useless if the defendant has no means to satisfy it.

Garfield helps you with this. For corporate debtors, Garfield goes to Companies House for you and tells you if the corporate debtor is trading and, if the corporate debtor has filed accounts, what they say.

Understanding the Limits

The English and Welsh small claims court system has strict financial thresholds.

• Standard Limit: In England and Wales, for debt claims the small claims track is generally for claims valued up to £10,000.
• Exceptions: Personal injury claims and housing disrepair claims have significantly lower thresholds (often £1,000) for the small claims track; above that, they may move to the Fast Track where legal costs become a risk. For full details on claim value thresholds, see our guide on small claims court limits in England and Wales.

The Mandatory Step: The Letter Before Claim

You cannot simply wake up one morning and sue someone. You are required to try to settle the dispute before involving the court. This is done by sending a formal "Letter Before Claim" or "Letter Before Action" (LBA).

If you skip this step, the judge may penalize you on costs, even if you win your case. Garfield automates this critical step, ensuring your LBA is legally compliant and professionally drafted, signalling to the defendant that you are serious.

The Letter Before Action Template Breakdown

To ensure the court accepts that you have attempted to settle, your letter must include specific elements. These non-exhaustively include:

• Basis of the Claim: Clearly state if this is a debt (unpaid invoice) claim.
• Specific Amount: The exact figure owed.
• Interest: A breakdown of any interest added.
• Reasonable Deadline: You must give the defendant time to reply, typically 30 days.
• Warning: A clear statement that court action (and associated costs) will follow if payment is not made.

Calculating Statutory Interest

When chasing a debt, you are generally entitled to add interest. Your entitlement may arise in one of three ways. First, you may have a contractual entitlement. Secondly, under Section 69 of the County Courts Act 1984, you can claim statutory interest at 8% per annum. Thirdly, if the debt is owed by a business, you may have an entitlement under the Late Payment of Commercial Debts (Interest) Act 1998. Adding interest not only compensates you for the delay but also strengthens your negotiation position. The longer the defendant delays, the more they owe. Garfield automatically works out what interest you might be entitled to and calculates it so you don't leave money on the table.

How to Make a Small Claim: Filing Options

Hopefully, in response to your Letter Before Action, the debtor will pay. This is what happens in the majority of cases. However, if your deadline in the Letter Before Action expires without payment, it is time to formalise the claim. While the underlying legal document is the Form N1, how you file it matters significantly for the speed and accuracy of your claim. Learn how to make a small claims court claim or read our detailed guide on how to file a small claim.

The Modern Approach: Garfield

Historically, claimants had to navigate clunky government portals (like Money Claim Online) or fill out physical paperwork. Government portals often have strict character limits on the "Particulars of Claim," forcing you to oversimplify complex disputes. They also offer no guidance on whether you are filling out the form correctly, or what strategy or process to adopt. This is because the Government has to be neutral in a dispute like this.

Garfield replaces these outdated methods. By using our AI-driven platform, you ensure your claim details are structured correctly, free from the constraints of rigid character counts, and professionally presented. We handle the generation and submission of the claim data, ensuring you don't lose your case on a technicality before it even begins.

Small Claims Court Fees in England and Wales

To issue a claim, you must pay a court fee. This fee is tiered based on the value of the claim.

• Recoverability: The good news is that if you win, the defendant is usually ordered to pay this fee back to you on top of the debt.
• Structure: Fees range from £35 for tiny claims up to £455 for claims between £5,000 and £10,000 - see form EX50.

The Response Phase: Payment, Mediation, Defences, and Counterclaims

Once the court serves the papers, the clock starts ticking. The defendant has 14 days to reply. They can admit the debt (and pay), file an Acknowledgment of Service (buying them 14 extra days, for a total of 28), or file a Defence. For complete details on deadlines and procedures, see our guide on small claims court rules and timescales.

The Defendant ignores your claim

If the defendant ignores your claim, it's time for you to obtain default judgment. Garfield automates this process by tracking deadlines and then, when you are ready to proceed, Garfield applies for default judgment for you.

Small Claims Mediation Service

If the defendant disputes the claim, the case does not immediately go to trial. The HMCTS (Her Majesty's Courts and Tribunals Service) now heavily promotes the Small Claims Mediation Service. This is a free 1 hour telephone service provided by the court and it is mandatory.

• The Goal: To settle the dispute without a hearing.
• The Benefit: It is faster, private, and removes the risk of the judge ruling against you. If you reach an agreement, it becomes legally binding. Garfield advises engaging with this process; often it leads to a resolution and, also, refusing mediation can sometimes be seen as "unreasonable behaviour" regarding costs.

Handling a Defence or Counterclaim

If mediation fails or is refused, the court sends out Directions Questionnaires (Form N180). This form helps the court decide where and when to hear the case.

• Allocation: This is where the case is officially allocated to the Small Claims Track (Civil Procedure Rules Part 27).
• Counterclaims: Be aware that a defendant might counter-sue. For example, a customer you sue for an unpaid invoice may try to allege there was something wrong with the goods you sold or the services you supplied. This increases the complexity of the case. Garfield's platform helps you stay organized and on track and dramatically reduces the time required to deal with this scenario. For more on handling defences, read our guide on small claims court rules and procedures.

The Small Claims Hearing Process: Remote vs. In-Person

If your case proceeds to a hearing, banish thoughts of dramatic TV courtrooms with wigs and gavels. Small claims hearings are conducted by a District Judge or Deputy District Judge and are relatively informal. For a complete overview, read our article on the stages of a small debt claim.

Remote Hearings (CVP) vs. In-Person

Since the pandemic, there has been a massive shift toward remote hearings using the Cloud Video Platform (CVP).

• Remote: You attend via video link. This saves travel time but requires a stable internet connection and a quiet room.
• In-Person: Usually held in a judge's chambers (an office) rather than a large courtroom. You sit around a table with the judge and the defendant.

Preparing for Your Hearing

Preparation is everything. You will be given a deadline to submit the documents you want to rely on and the Court Bundle.

• Strict Deadlines: If you miss the deadline to send your documents to the court and the defendant, the judge may refuse to look at your evidence.
• Etiquette: Call the judge "Judge" or "Sir." Speak clearly. Do not interrupt the defendant; you will get your turn.
• Structure: The Claimant (you) usually speaks first to explain the case. The Defendant responds. The Judge will ask questions to clarify facts.

The Costs Rule

The defining feature of the Small Claims Track is the "No Costs" rule (CPR 27.14).

• General Rule: You cannot recover the cost of a solicitor or legal representative from the other side, even if you win.
• Recoverable Costs: You can recover fixed costs, court fees, fixed witness expenses, and a small amount for loss of earnings for attending the hearing (capped at a daily rate).
• Exception: The court can only award legal costs if a party has behaved "unreasonably." This is a high bar and rarely applied. If you're worried about the outcome, read our guide on what happens if you lose in small claims court.

The good news is that for most stages, Garfield's fees are at or below the fixed costs, so are recoverable. This means that in net terms using Garfield is far more financially advantageous for you than any alternative service.

The Hard Truth: Enforcing Small Claims Judgment

You won! The judge issued a CCJ in your favour. But the defendant still hasn't paid. The court does not automatically collect the money for you; enforcement is up to you.

Typically, the defendant is given 14 to 30 days to pay the judgment debt. If they ignore this, you can take enforcement action. For more on enforcement and next steps, see our guide on the small claims court process.

Enforcement Options

• Warrant of Control: This instructs County Court Bailiffs to visit the defendant's address to collect money or seize goods. It is the cheaper option but often has lower success rates for determined debtors.
• Writ of Control: If your debt is over £600, you can "transfer up" the judgment to the High Court. This allows you to use High Court Enforcement Officers (HCEOs). Their fees are higher (added to the debt), but they have greater powers and higher success rates than county bailiffs.
• Third-Party Debt Order: If you know the defendant's bank details, you can apply to freeze their account and take the money directly.
• Attachment of Earnings: If the defendant is employed, the court can order their employer to deduct money from their wages to pay you.
• Charging Orders: If the defendant has land or property, you can apply to put a charge (like a mortgage) over their property. This turns into money when the property is sold.

Common Small Claims Court Mistakes (And How to Avoid Them)

Before diving into the FAQs, here are the most common mistakes that can derail your small claims case:

Mistake 1: Skipping the Letter Before Action

This is the most expensive mistake you can make. If you file a claim without sending a compliant Letter Before Action, the judge can penalise you on costs, even if you win. Always send the LBA and wait for the deadline to pass before issuing proceedings. Garfield generates fully compliant LBAs automatically.

Mistake 2: Suing the Wrong Legal Entity

Are you suing "John Smith" or "John Smith Trading As XYZ" or "XYZ Ltd"? Getting this wrong is fatal to your claim. If the debt is owed by a limited company, you must sue the company, not the director personally. This is checked by Garfield before it files on your behalf.

Mistake 3: Missing Court Deadlines

The small claims process has strict deadlines. If you miss the deadline to return your Directions Questionnaire, your claim can be struck out. If you miss the deadline to submit your Court bundle, the judge may refuse to consider it. Garfield tracks all deadlines automatically so nothing slips through the cracks.

Mistake 4: Failing to Gather Evidence Before Filing

You cannot win on your word alone. Before filing, ensure you have contracts, invoices, emails, and any written admissions of the debt. Organise everything chronologically in a bundle. Garfield does this automatically for you.

Mistake 5: Ignoring Mediation

Refusing the free Small Claims Mediation Service can be seen as "unreasonable behaviour." Even if you're confident of winning, mediation is faster and removes the risk of an adverse judgment. Always engage with the process.

Frequently Asked Questions

How long does the small claims process take in England and Wales?

Currently, it can take 8 to 12 months from filing a claim to reaching a final hearing, depending on the backlog at your local County Court. However, many cases are settled earlier via mediation or simply by sending a strong Letter Before Action. For more details, read our guide on how long small claims court takes.

Do I need a solicitor for small claims court?

No. The system is designed for "Litigants in Person." Because you generally cannot recover legal costs from the other side (CPR 27.14), hiring a traditional solicitor often costs more than the claim is worth. Garfield offers the perfect middle ground: professional SRA-regulated legal guidance powered by AI, at a fraction of the cost of a traditional firm.

What is the deadline for making a claim (Statute of Limitations)?

In England and Wales, under the Limitation Act 1980, you generally have 6 years from the date of the breach of contract or the date the debt became owed to start legal proceedings. If you wait longer, your claim will likely be "statute barred." For contracts made in the form of a deed, the limitation period is 12 years.

What happens if the defendant has no money?

If the defendant is insolvent or has no assets, you may win the judgment but fail to enforce it. This is why the pre-action financial assessment is critical. You do not want to spend money on court fees to chase a "paper" victory against someone with empty pockets.

Can I claim for my time and stress?

Generally, no. In the Small Claims Track, you cannot claim compensation for the stress of the process or the time spent preparing your paperwork. You can only claim for limited "loss of earnings" for attending the actual hearing and specific fixed costs like the court issue fee.

Why Choose Garfield for Your Small Claim?

When it comes to taking someone to small claims court, you have three options:

Garfield offers the best of both worlds: the affordability of DIY with the compliance assurance of a solicitor. As the UK's first SRA-regulated AI law firm, we're held to the same professional standards as traditional law firms, but without the traditional price tag.

Conclusion

The path from dispute to payment can be winding, but it doesn't have to be walked alone. While the courts provide the venue, they do not provide the strategy. That's where Garfield comes in.

Here are the key takeaways:

• Always send a Letter Before Action first - it's mandatory and Garfield automates this
• Know the £10,000 limit for the small claims track for debt claims in England and Wales
• Engage with mediation - refusing can hurt your case
• A judgment isn't the finish line - enforcement is where you actually get paid
• Avoid common mistakes - wrong entity, missed deadlines, and skipped procedures

Stop chasing. Start recovering. Create your Letter Before Action with Garfield today and take the first confident step towards getting your money back.

Start Your Claim with Garfield →