If someone owes you money and isn't paying, you need to act quickly and follow a clear process. Waiting and hoping won't work: you need to escalate systematically until they take it seriously.
Step 1: Check you have proof
Before you do anything, make sure you can prove the debt exists:
- Written agreement or contract
- Text messages or emails acknowledging they owe you money
- Bank transfer records showing you paid them or lent them money
- Invoices or receipts
Without proof, legal action will fail. If you're relying on a verbal agreement, it's much harder (but not impossible) to prove in court.
Step 2: Ask politely first
Most people pay when reminded. Send a friendly message assuming they forgot:
"Hi [Name], just a quick reminder that the £500 loan is now due. Could you let me know when you can pay it back?"
Don't be aggressive at this stage: you might just catch them at a bad time, and a polite nudge often works.
Step 3: Offer a payment plan (if needed)
If they genuinely can't pay in full, consider a payment plan. Get it in writing:
- How much they'll pay each week/month
- When payments are due
- What happens if they miss a payment
This keeps the money flowing and avoids court, which benefits both of you.
Step 4: Send written requests (if they ignore you)
If politeness doesn't work, escalate:
Day 7: Polite but firmer written request "I need confirmation of when you'll pay the outstanding £500."
Day 14-30: Much firmer tone "This has now been outstanding for [X] days. Please pay within 7 days to avoid further action."
Keep records of everything you send.
Step 5: Send a Letter Before Action (day 30-45)
This is a formal legal warning that you're about to take them to court that Garfield can draft and send for you. It must include:
- Full details of the debt
- How much they owe (including interest if applicable)
- A deadline to pay (usually 14 days)
- Warning that you'll file a court claim if they don't pay
Send it by Recorded Delivery or Signed For post: you need proof it was delivered.
Around 30-40% of people pay at this stage to avoid court.
Step 6: File a small claims court claim (day 60+)
If they still haven't paid, file a claim:
- Online using Garfield (faster)
- By post using form N1
Court fees:
- £35 for debts under £300
- £50 for £300-£500
- £70 for £500-£1,000
- £80 for £1,000-£1,500
- Up to £455 for £5,000-£10,000
These fees are recoverable if you win.
Timeline:
- If they ignore the claim: you get a default judgment within a few weeks
- If they defend: it takes 4-6 months to get to a hearing
Evidence you'll need:
- The proof of debt (contract, texts, bank records)
- All your attempts to collect payment
- Any other supporting documents
Step 7: Enforce the judgment (if they still don't pay)
Winning in court doesn't automatically mean you get paid. If they ignore the judgment, you can:
- Use bailiffs to seize and sell their belongings
- Get an attachment of earnings order (takes money from their wages)
- Apply for a charging order on their property
These cost extra but increase pressure to pay.
Your options compared
DIY recovery:
- Time: 15-25 hours
- Success rate: 30-50%
- Risk: High error rate, missed legal requirements
Solicitors:
- Cost: £1,000-£2,500+ (not recoverable in small claims)
- Unprofitable for most debts under £10,000
Garfield:
- Setup: 5 minutes
- Fees: Fixed and recoverable (effectively free if you win)
- Success rate: 70-80%
- Stress: Minimal (everything automated)
Act quickly
The sooner you take action, the more likely you are to recover your money. Delays mean:
- The debtor's financial situation might worsen
- Your evidence becomes stale
- They think you won't actually do anything
Don't wait months hoping they'll pay. Start with a polite reminder within days, and escalate from there.