Use the Small Claims Court for Debt Recovery

What is the small claims court?

If someone owes you money and refuses to pay, you can ask the courts to help recover it. The small claims court is not actually a separate court building or institution. It is one of three tracks within the County Court system, known formally as the Small Claims Track.

The County Court handles most civil disputes in England and Wales, including debt recovery, contract disagreements and claims for compensation. When you submit a money claim, the court will allocate it to one of three tracks depending on the value and complexity. The Small Claims Track handles claims up to £10,000, though personal injury and housing disrepair claims have a lower limit of £1,000.

This track exists so that ordinary people can pursue disputes without hiring lawyers. The procedures are stripped back compared to other court processes, and most claimants represent themselves. In most cases, losing a small claims case does not obligate you to pay the other side's legal costs, which makes bringing a claim less risky financially.

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When to use the small claims process

Common reasons people use this process include:

• Unpaid invoices for goods or services
• Money lent to someone who has not repaid it
• Deposits not returned by landlords or traders
• Faulty goods or poor workmanship where a refund has been refused
• Breach of contract disputes

Before you can bring a claim, you must show the court that you have tried to resolve the matter directly with the person who owes you money. Courts expect you to follow reasonable pre-action conduct, which means writing to the other party setting out what you are owed, why you believe they owe it, and giving them a reasonable deadline to pay or respond. This is not a formal protocol for small claims in the way it is for larger cases, but judges will want to see that you made genuine attempts to settle before issuing proceedings.

Keep copies of all correspondence. If the case goes to court, you will need to demonstrate that you tried to resolve things first.

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How to start a claim

Most money claims in England and Wales can be started online through the Money Claims Online service, which is run by HM Courts and Tribunals Service. This system allows you to submit your claim, pay the court fee and track progress as your case moves through the process.

You will need to provide details about yourself, the person or business you are claiming against, the amount owed and the reasons for your claim. Be clear and factual. Stick to what you can prove with documents, messages or other evidence.

There is a court fee to pay when you submit your claim. For claims up to £300, you will pay a fee of £35. Higher claim amounts fall into bands with progressively larger fees. Current fee levels are published on GOV.UK. If you are on a low income or receive certain benefits, you may be able to apply for help with fees.

Once you have submitted your claim, the court will send the details to the defendant. They then have a set period to respond. They may pay the full amount, dispute the claim, or admit part of it. What happens next depends on their response.

If the defendant does not reply at all, you can ask the court to make a judgment in your favour by default. If they dispute your claim, the case will be allocated to the appropriate track and you may need to attend a hearing. From start to finish, a straightforward small claim typically takes several months to reach a hearing, though cases that settle early or result in default judgment can conclude sooner.

Winning your case does not guarantee payment. If the defendant refuses to pay or claims they cannot afford to, you may need to take enforcement action. Options include applying for a warrant of control, which sends enforcement agents to recover goods, or an attachment of earnings order, which deducts money directly from wages.

Alternatives to court action

Going to court should usually be a last resort. It takes time, costs money and there is no guarantee you will recover what you are owed even if you win.

Mediation is one alternative worth considering. A mediator is an independent person who helps both sides reach an agreement without a court hearing. The Small Claims Mediation Service, provided free by the court, offers a one hour telephone mediation session for allocated small claims cases. Organisations such as the Civil Mediation Council can also help you find an accredited mediator for civil disputes.

You might also try sending a formal letter before action, sometimes called a letter before claim. This sets out your case clearly and warns the other party that you intend to take legal action if they do not pay. Sometimes this is enough to prompt payment without needing to go further.

If you are unsure whether the small claims process is right for your situation, consider seeking advice first. Citizens Advice can help you understand your options, and GOV.UK provides guidance on the claims process, fees and what to expect at each stage.

The Next Step

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