Options if you're owed money
Use a mediation service, go to court, send a statutory demand or make someone bankrupt if a person or business owes you money.
Mediation
Mediation is when an impartial professional (the mediator) helps both sides work out an agreement. It’s confidential and usually quicker and cheaper than going to court.
You can get mediation from an independent mediator instead of making a court claim for money.
If you make a court claim for your money, you’ll be offered free mediation if your claim is for £10,000 or less and the defendant disputes it.
Court action
You can make a court claim for your money if mediation does not work.
The court can order the money to be paid.
Make an official demand for money you’re owed
You can use a statutory demand to ask for money you’re owed from a person or business.
If they ignore the statutory demand or cannot repay the money, you can apply to a court to:
- make someone bankrupt - if you’re owed £5000 or more by an individual, including a sole trader or a member of a partnership
- get a company wound up (liquidated) - if you and any other creditors are owed £750 or more
However, the costs are high and you may not get any of your money back. Get legal advice before doing this if you’re unsure.
Get money you’re owed from a bankrupt person or a company that’s being liquidated
You must register your claim to money from a bankrupt person or a company so that if there’s any money available to pay debts, you can get a share.
Get money you’re owed by someone in another country
Get legal advice if you need to recover debt from a person or a business in another country.