What to do when someone owes you money and won't pay

Last updated: 9 November 2024

If someone owes you money and won't pay, you need to act quickly and follow a clear escalation process. Waiting and hoping doesn't work: you need to show them you're serious.

Step 1: Check you have proof

Before doing anything, make sure you can prove the debt:

  • Written contract or invoice
  • Text messages or emails acknowledging they owe you
  • Bank transfer records
  • Receipts or other documentation

Without proof, you won't win in court.

Step 2: Send a polite reminder (within 7 days)

Most people pay when reminded. Send a friendly message assuming they forgot:

"Hi [Name], just a quick reminder that the £1,000 you owe me was due on [date]. Could you let me know when you'll pay?"

40-50% pay at this stage.

Step 3: Escalate to written demands (days 14-30)

If they ignore you, send a firmer written request:

"This payment is now 14 days overdue. Please pay within 7 days or I'll have to take further action."

Step 4: Send a Letter Before Action (days 30-45)

This is a formal legal warning sent by Recorded Delivery. It must include:

  • Full details of the debt
  • Deadline to pay (14-30 days)
  • Warning that you'll file a court claim if they don't pay

An additional 30-40% pay at this stage to avoid court.

Step 5: File a small claims court claim (day 60+)

If they still ignore you, file a claim:

  • Online at gov.uk/make-court-claim-for-money
  • Fees: £35-£455 depending on claim amount (recoverable if you win)
  • Timeline: 4-6 months if they defend, 4-6 weeks if they don't respond

About 70% of claimants win if it goes to court.

Step 6: Enforce the judgment (if they still won't pay)

Winning 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

This adds 3-12 months but increases pressure to pay.

Your options compared

DIY recovery:

  • Time: 15-25 hours
  • Timeline: 3-6 months
  • Success rate: 30-50%
  • Risk: High (easy to make mistakes)

Solicitors:

  • Cost: £1,000-£2,500+
  • Not recoverable in small claims (you pay out of pocket even if you win)
  • Unprofitable for debts under £10,000

Example: £3,000 debt with £1,500 solicitor fees = you only net £1,500 even if you win.

Garfield:

  • Time: 5 minutes
  • Cost: Fixed recoverable fees (effectively free if you win)
  • Success rate: 70-80%
  • Stress: Minimal (everything automated)

Act fast

The sooner you take action, the more likely you are to recover.

Delays mean:

  • Their financial situation gets worse
  • Your evidence becomes stale
  • They think you won't actually do anything

Start within days, not months. Send that first reminder as soon as payment is overdue.

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What to do when someone owes you money and won't pay | When Someone Owes Money | Garfield Help