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 is when an impartial person - trained in dealing with difficult discussions between 2 opposing sides - acts like a referee in a dispute.
There can be a fee for mediation but it is cheaper than hiring a solicitor and taking court action. The fee is based on how much is owed.
You can make a court claim for your money if mediation doesn’t work.
You can make a claim online if the money owed is less than £100,000 and owed by no more than 2 people or 2 organisations.
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 can’t 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.