Calderwood House, Montpellier Parade, Cheltenham GL50 1UA
Chasing unpaid invoices or money owed to your business? We help businesses in Cheltenham with debt recovery, from pre-action correspondence and payment demands through to court proceedings and enforcement where appropriate.
Debt Recovery
An unpaid invoice can put pressure on cash flow even when your business has done everything it agreed to do. Repeated reminders may produce promises instead of payment, or a customer may raise a complaint only after the account becomes overdue. Our debt recovery solicitors help you decide how to respond firmly and proportionately. We check the basis of the debt, the correct person or business to pursue and whether the correspondence reveals a real dispute. That gives you a clearer view of the likely recovery before spending more time or money chasing it.
We can prepare a compliant letter of claim, assess a proposed repayment arrangement and advise on court proceedings and enforcement if needed. Our legal team looks at payment terms, interest, supporting records and the debtor's apparent ability to pay, as well as the commercial value of the relationship. Where an invoice is disputed, we explain what evidence is needed and whether the matter should be treated as a wider contract claim. You receive practical legal advice on the next stage and its costs, with no assumption that obtaining a judgment will automatically produce payment.
A recoverable debt usually requires an obligation to pay an identifiable sum that has fallen due. An invoice records the demand, but the underlying agreement and evidence of delivery or performance establish why the money is owed. We check payment dates, credits, previous payments and any contractual conditions before calculating the balance.
Identifying the debtor correctly is essential. A trading name may belong to a sole trader, partnership or limited company. A director is not personally liable for a company's invoice merely because they placed the order. Personal guarantees and other possible liabilities require separate evidence and analysis.
The pre-action procedure depends on the debtor and the dispute. Where a business claims a debt from an individual, including a sole trader, the Debt Claims Protocol will generally apply. It requires prescribed information and supporting forms, and ordinarily gives the debtor 30 days to reply. Further time may be required where documents or debt advice are sought.
That protocol does not generally govern a debt owed by one limited company to another. The applicable pre-action obligations still require proportionate information and a reasonable opportunity to respond. We prepare the letter for the correct route rather than applying the same short payment deadline to every account.
For qualifying late commercial payments, statutory interest may be available at eight percentage points above the Bank of England base rate. A contractual interest remedy can affect whether the statutory regime applies. We check the agreement, relevant dates and eligibility before adding interest, rather than applying a flat eight per cent to every debt.
The statutory regime can also provide fixed compensation of £40, £70 or £100 depending on the size of the qualifying debt, with additional reasonable recovery costs potentially available where the statutory conditions are met. These rights do not mean every solicitor's charge can automatically be passed to the debtor. Consumer and other debts require a different assessment.
If the debtor does not pay or provide a satisfactory response, court proceedings may be appropriate. A defended case requires the evidence and any counterclaim to be addressed; it does not follow the same route as an unanswered claim. A realistic instalment proposal may sometimes offer a better recovery than immediate litigation.
Once judgment is obtained, the debtor may still fail to pay. Enforcement could involve a warrant or writ of control, a third-party debt order or another suitable method, depending on the debtor and assets. Each route has conditions, costs and limits. We discuss those factors before treating enforcement as worthwhile.
Recovery may fail where the wrong entity is pursued, the invoice is unsupported, the work is genuinely disputed or the debt is out of time. Insolvency or lack of accessible assets can prevent payment even after a successful claim. Overstated interest and charges can also distract from an otherwise valid demand.
Insolvency procedures should not be used as a routine threat to force payment of a genuinely disputed debt. We assess whether a proposed step is legally appropriate and proportionate, including the risk of an adverse costs order. Evidence of ability to pay is a practical part of deciding how far to pursue the matter.
We explain the fee for each agreed stage, such as reviewing the account, sending a letter of claim or issuing proceedings. A defended claim and enforcement involve additional work and expenses. For a court money claim of £3,000.01 to £5,000, the issue fee is currently £205; a claim of £5,000.01 to £10,000 attracts £455. These figures were checked on 15 September 2026.
The amount of legal costs recoverable from the debtor depends on the contract, applicable rules and court process. Small claims usually allow limited cost recovery. We compare the likely debt recovery with the expected spend before recommending escalation, and explain any VAT and additional expenses in the quotation.
Debt Recovery FAQs
Answers about overdue invoices, interest, payment arrangements, court claims and enforcing a judgment.
Once payment is overdue and routine reminders have not resolved matters, legal advice can help identify the appropriate next step. You do not need to keep accepting vague promises indefinitely. Send the payment terms, invoice and correspondence so we can check whether the debt is due, whether it is disputed and which pre-action procedure applies.
Possibly. Orders, emails, delivery records, invoices and previous dealings may establish an agreement and the amount due. The absence of signed terms can make the payment date, interest entitlement or scope of work harder to prove. We review the available records and identify the evidence needed before a formal demand or court claim is prepared.
No. The entitlement depends on the contract and any applicable statutory regime. Qualifying business-to-business payments may attract statutory interest, but consumer debts and other arrangements need separate analysis. We check the correct rate, start date and any alternative contractual remedy so the demand does not include unsupported or duplicated interest and recovery charges.
Not in every case. The Debt Claims Protocol generally requires that initial response period for a business debt claimed from an individual, including a sole trader. Other business debts may follow different pre-action requirements. We identify the correct route and consider whether further time is required for documents, advice or a substantive response before proceedings begin.
A genuine dispute needs to be addressed rather than treated as an undisputed invoice. We examine the agreed scope, evidence of performance, complaints and any opportunity to remedy the issue. The debtor may assert a reduction, set-off or counterclaim. Our advice considers both the payment entitlement and the cost of resolving the underlying contractual disagreement.
A company's debt is generally owed by the company. A director may have separate liability under a personal guarantee or another established legal basis, but their position alone is insufficient. We check who contracted, the signature and any guarantee before recommending a personal claim, avoiding proceedings against someone who is not legally responsible.
That depends on the proposal, evidence of means and realistic alternatives. An affordable arrangement may produce a better result than a judgment against someone unable to pay immediately. We can help record the balance, instalment dates, interest treatment and consequences of default, and consider whether additional protection is available and proportionate in the circumstances.
A simple contractual debt claim generally has a six-year limitation period from when the cause of action arises, often when payment falls due. Acknowledgment, part-payment and particular contractual arrangements can affect the analysis. Do not assume each reminder restarts the clock. We check the dates and evidence before relying on any extension or new payment promise.
You may need a separate enforcement step suited to the debtor's assets or income. A judgment does not itself locate money or guarantee recovery. We assess available information and the conditions and costs of the relevant methods, including whether further expenditure is justified. Insolvency or competing claims against assets can materially affect the result.
Not automatically. A contractual costs provision, statutory compensation or court order may permit some recovery, but each has limits. Small claims cost rules are particularly restrictive. We distinguish your liability for our agreed fees from sums that may be recoverable and explain the financial position before a letter, court claim or enforcement application is pursued.
Send the unpaid invoices, payment terms and recent correspondence so we can discuss a proportionate debt recovery approach. We will explain the scope and fee for the work you need.
Call 0330 900 0377, email info@pembridgesolicitors.co.uk or request a consultation. Arrange a telephone call or visit our Cheltenham office by appointment.
We assist clients in Cheltenham and the surrounding Gloucestershire area.
Pembridge Solicitors
Calderwood House, Montpellier Parade
Cheltenham GL50 1UA
Office visits by appointment.