What to do if you're owed money
Expert Guidance from Specialist Civil Litigation Solicitors in Ebbw Vale, South Wales
Being owed money can be frustrating, stressful, and financially damaging - especially when informal attempts to recover the debt have failed. Whether you’re an individual, sole trader, or business in Ebbw Vale or elsewhere in Wales, knowing your rights and understanding the small claims process in the UK is crucial.
At Fonseca Law, our experienced civil litigation solicitors in Ebbw Vale have extensive knowledge of helping clients recover outstanding debts through the small claims court.
Below, we explain everything you need to know about pursuing a claim for unpaid debts in Wales and England, including the steps you should take, what the court process involves, and what to expect.
What is a small claim?
In the UK, a small claim typically refers to a civil claim for money owed that is valued at £10,000 or less (excluding interest and costs). These cases are usually dealt with in the County Court and follow a simplified procedure designed for quicker and more affordable resolution of disputes.
Types of claims suitable for the small claims court:
- Unpaid invoices or services rendered
- Loan repayments between individuals
- Disputes over faulty goods or poor service
- Landlord and tenant disputes over deposits
- Unpaid rent arrears
- Contractual disagreements for lower-value sums
Is the small claims court right for you?
Before proceeding with court action, our solicitors always advise exploring all reasonable avenues to resolve the dispute amicably. Court proceedings should be a last resort.
Consider the following before claiming:
- Have you sent a clear written demand for payment?
- Have you given reasonable time for the debtor to pay?
- Have you tried negotiation or mediation?
- Are you confident the debtor has the means to pay if successful?
If all efforts to resolve the matter fail, the small claims court provides a legal route to pursue what you are owed.
How to begin the small claims process
1. Send a Letter Before Action (LBA)
This is a formal letter sent to the debtor outlining:
- The amount owed
- A summary of the facts
- A clear deadline for payment (usually 14-30 days)
- Notification that court proceedings will follow if payment is not made
A professionally drafted Letter Before Action from our Ebbw Vale solicitors often prompts payment without further action.
2. Starting your claim - Money Claim Online (MCOL)
If the debtor fails to respond or pay, you can start a claim through:
- The Money Claim Online service
- Alternatively, by post using Form N1 to the local County Court
You will need to provide:
- Full details of the claim
- Evidence of the debt (invoices, contracts, communications)
- Payment of a court fee (this varies based on claim value)
What happens after you submit a claim?
Response options for the debtor:
The debtor can:
- Admit the claim and pay
- Admit the claim but request time to pay
- Dispute (defend) the claim
- Ignore the claim (you can then request judgment in default)
Defended claims - the court process explained
If the debtor disputes the claim, the court will:
- Allocate the case to the small claims track
- Set directions, such as exchanging evidence
- Arrange a court hearing if required
Hearings are usually informal and held at the local County Court (for Ebbw Vale clients, this may be Cardiff Civil Justice Centre or Newport County Court).
What happens at the small claims hearing?
- The District Judge will hear both sides of the dispute.
- You can represent yourself, but many choose to instruct experienced civil litigation solicitors for confidence and preparation.
- The judge will review evidence, ask questions, and deliver a decision.
What can the court award you?
If successful, you may recover:
- The debt owed
- Court fees paid
- Limited expenses (travel, loss of earnings for attending court)
- Interest on the debt at a rate that the court thinks fit as per the County Courts Act 1984
Note: You cannot generally recover your solicitor’s legal costs in small claims, but advice and preparation can significantly increase your chances of success.
What if the debtor still won't pay?
Winning in court does not guarantee immediate payment.
Enforcement options include:
- Warrant of Control (County Court Bailiffs)
- Attachment of Earnings Order (for employed debtors)
- Charging Order (against property owned)
- Third Party Debt Order (freezing money held in the debtor’s bank account)
Our solicitors in Ebbw Vale can advise on the most appropriate enforcement method for your circumstances.
How long does the small claims process take?
This varies depending on whether the claim is defended and the local court's workload.
Typically:
- Uncontested claims - 1 to 3 months
- Contested claims - 6 to 9 months or longer
Benefits of using a solicitor for small claims
Whilst the small claims process is designed to be accessible for individuals without legal representation, using expert solicitors offers several advantages:
- Professional drafting of your claim and evidence
- Negotiation expertise
- Legal advice on realistic outcomes
- Preparation for court hearings
- Maximising the chance of settlement or success
Expert civil litigation solicitors in Ebbw Vale, South Wales
At Fonseca Law, we have a proven track record of helping clients in Ebbw Vale and throughout South Wales recover unpaid debts efficiently and professionally. Whether you need advice on sending a Letter Before Action, guidance through the Money Claim Online system, or full representation in court, we are here to help.
Contact our specialist solicitors today
If you are owed money and want to explore your options for debt recovery through the small claims court, contact our friendly and experienced civil litigation team today. We provide straightforward, practical legal advice tailored to your situation.