Someone owes you money? From the first letter to collection

Many people wait too long before acting to collect a debt. Sometimes out of politeness, sometimes because it feels awkward. But every month that passes can make collection harder.

1. Gather the documents

A contract, an invoice, messages, a cheque or a promissory note. Anything that shows the money is owed to you, and how much.

2. A demand letter

A proper letter from a lawyer, with the amount, a deadline for payment and what happens otherwise. Often that is enough. If not, it shows you tried before turning to proceedings.

3. Choose the route

• A cheque or promissory note: it can be filed for enforcement directly at the Enforcement Office, without a court claim.
• A debt for a fixed sum, such as an unpaid invoice: sometimes a fixed-sum claim can be filed directly with the Enforcement Office.
• A disputed debt: a claim is filed in court. For small amounts, the Small Claims Court is worth considering.
• Where there is a risk the debtor will move assets away: a temporary attachment can be requested at the start of the case.

4. Actual collection

An unpaid judgment is filed for enforcement. From there you can ask for attachments: bank accounts, salary, a vehicle, and money a third party owes the debtor. A settlement with instalments is sometimes the fastest way to see the money.

And time

A civil claim generally becomes time-barred after seven years. But long before that, evidence gets lost and the debtor may run into difficulties. Earlier is almost always better.

If someone owes you money, send me the documents, and I will tell you which route fits and how likely collection is.

This article is general information, not legal advice. Every case is different, and the law changes from time to time. Before acting, it is worth taking advice on your own circumstances.