help for a charity on bad debts

[ruggief]

Hi
We are a small village Pre-school and therefore cash flow is always a juggle for our treasurer, we have two parents who haven't paid their bills. We have tried ourselves to resolve this by offering payment plans, budgets and no money is forthcoming.(debts go back almost 8 months). Without consulting a solicitor which we can't really afford can anyone suggest a website which has letters we could copy and send (looking for fairly forceful ones as our nice approaches aren't working).
Thanks in advance

[Loosehead]

You don't need a solicitor, write a letter explaining the cash flow as you have above and say that unless they pay up you will be left with little choice but to go to the small claims court . The amount will then be X + interest (at 8% + base) + �120 court fee. Unless they are entirely stupid or if they dispute the amount somehow they'll pay. If they don't then file a small claim.

[buildersmate]

Here's how to do the second bit, if the first stage fails.

http://www.hmcourts-service.gov.uk/infoabout/c laims/index.htm

[ruggief]

Hi
Thanks for both answers, I didn't realise we could charge interest, assume the filing fee for small claims court gets added to their bill as well?

[Loosehead]

you add the fee as part of the claim eg:

Outstanding amount �N
interest n days at 8%:base = �X
Court Fee = �120
=======
Total claim �NNNN
=======

[Trotbot]

An alternative approach may be to advise all parents that at some point in the future a list of bad debts will be posted on the notice board. Not sure about the legal issues, and you might need to differentiate between cannot pay and will not pay, but it has worked for me in a similar situation. Also, consider excluding the kids (which is dragging them into it, but that is their parents fault, not yours). If you advise them in advance, them they may be shamed into paying.

[ruggief]

Hi
Our problem is can't pay,we've suggested payment plans paying �20 a week then reduced to �10 and the payments keep being missed, our only option is to try and exclude the child but now he is funded by government vouchers and the debt is from the daycare before the vouchers started so not sure where we stand legally??

[Loosehead]

They still owe you the money, simple!