Not Disputing The Claim, Just Won't Pay Up!

[ganesh]

To cut a long story short I am owed money from someone. He is not disputing it, I have legal proof of the loan and intention to repay,and he has actually paid back a small amount.
He has now stopped payments and says he cant afford to pay any more back and is no longer communicating. I have threatened court action but looking at it, it seems that the court is just for disputed claims and not debt recovery. Should I still go through this legal procedure or use a debt collection agency? I cannot let this go for financial and moral reasons. Any ideas?

[boxtops]

Small claims court? He's disputing his ability to pay, after all.

I wouldn't use an agency, that's heavy handed, IMO, and it may still go to court anyway if they have no more luck than you do - and they will charge you fees.

[dannyk13]

You could get advice from Relate(ex Citizen's Advice Bureau)

[ganesh]

Relate? It is not a relationship issue. The court forms talk about disputed amounts owed rather than not paying, and I know he can pay, just won't.The small claims court charges £70 and would I actually have to go to court in person? I find the whole thing scary but just want to do it legally.

[FredPuli43]

The claim form in front of me lists "court fee" as £15 for a small claim. Are you sure it costs £70 ?

What happens is you issue the claim for the amount outstanding; the court office will help you; and it is served on the debtor . With it is a document he returns to the court , to say whether he admits all or a part of the claim. He says he admits it. He is then invited to say what his income etc is so the Court can make an order

[ganesh]

I am looking at the small claims court form for a £1000 claim. It says £70 for post and £60 online. Am I looking at the wrong form? It's all very confusing. Can you give me a link?

[VHG]

>>>You could get advice from Relate (ex Citizen's Advice Bureau)

The Citizen's Advice Bureau is still called that.

Relate used to be called the Marriage Guidance Council

[ganesh]

The Citizens Advice Bureau is still going. I'm not interested in Relate, this is not a relationship issue, this is money lent to a friend a while ago.

[factor-fiction]

I would make sure you are on the proper website rather than one of these sites that looks official but isn't and charges over the odds for passports, tax forms, Ni cards etc

[factor-fiction]

The small claims process should be fairly straightforward but actually getting the money could be very difficult, especially if the person can show they have insufficient disposable income, and some people lie about these things- e.g. say they are out of work when they aren't.

[ganesh]

I have looked on the 'government' web-site via CAB so I think I am doing this right. There are loads of different forms you can download which is why I asked Fred where he was looking, and why I am asking for a bit of advice. So assuming he isn't scared into repaying by the court letter, and he lies about income on the form, how do I get the money back?

[EDDIE51]

Even if you get a judgement it does not mean you get paid. You still have to get the cash out of him, if he really has no money then there is little you can do, you can't get blood out of a stone.

[plowter]

ganesh, you have the correct fees for raising a small claim up to £1,000
http://hmctsformfinder.justice.gov.uk/courtfinder/forms/ex050-eng.pdf

When you raise a small claim the initial hearing may offer an alternative resolution process, such as mediation.

The leaflet 'I’m in a dispute - what can I do?' might help
http://hmctsformfinder.justice.gov.uk/courtfinder/forms/ex301eng.pdf

[factor-fiction]

Yes, your figures look right to me too
https://www.gov.uk/make-court-claim-for-money/court-fees
However fredpuli may know a less expensive route

[ganesh]

I am hoping that the threat of a CCJ ,which affects credit rating and stuff, would be enough to make him pay anyway, and I think that once he gets the letter from the court that he would pay up just to avoid one. I think he is calling my bluff, so to speak, and doesn't really think I'll do it. I presume he has another chance to pay after the initial letter from them to avoid the CCJ?

[factor-fiction]

For around £1000 I think I would invest/risk £60, but in my experience people who refuse to pay debts like this either have little or no resources or will try every trick in the book to pay as near to nothing as possible. You may have to prepared to accept payments along the lines of £1 a week for around 20 years, or take further steps to recover your money. Good luck!

[ganesh]

Yes I will do it- I bet Phil Mitchell wouldn't do it this way!!!

[ganesh]

So what 'further' steps could be taken? Surely if the judge said £1 per week for 20 years that wouldn't be acceptable? When do the 'bailiffs go in' like you hear about and what used to be the threat if you owed money?

[craft1948]

Is this person employed (not self-employed)?

[ganesh]

Employed still I believe. I know he is not well off but still...I do feel the law should be on my side.

[craft1948]

If you get a CCJ against him and he still doesn't pay you apply to the court for a warrant of execution to recover the debt. This would mean the bailiffs going round (he has to pay their fees as well).
If he's in full-time employment I'd threaten him with an attachment of earning order.