As expected, the government has further extended the temporary protections given to companies by the Corporate Insolvency & Governance Act 2020, by extending the moratorium on serving statutory demands and presenting winding up petitions to 30 June...
As a business, unpaid invoices can cause a raft of issues, such as cash flow problems that can make it difficult for you to pay your own bills or make payroll. If you have tried late payment demands and followed the appropriate pre-action protocol for debt recovery, but have been unsuccessful, the next stage is to take further legal action against the debtor. While most debt recovery cases are resolved well before this stage, sometimes unpaid invoices legal action is the only option for a business trying to get back the money they are owed and legally entitled to. A brief summary of how to get a CCJ is outlined below.
If you have sent your letter before action or letter of claim, depending on whether the debtor is another company or an individual, and no payment is forthcoming before the deadline set out, you can then issue a formal legal claim for the money owed to you. You can also include any interest on the unpaid invoice that is owed to you in the debt claim. Once the court fee is paid, your claim can be issued.
The debtor will be notified of the claim and given a set period of time within which to pay the outstanding sum, offer a repayment proposal, accept or partially accept, or defend the claim. If they fail to respond within the deadline or repayment terms are not agreed, you can request the issuing of a CCJ.
For more information about debt recovery or how to issue a CCJ, the expert team at Stephensons can help. Call us today on 0161 696 6170.