Take legal action on a debt
Most debts settle before a courtroom - often the moment a debtor realises you’re genuinely prepared to litigate. The credible threat, properly made, is the point.
- Required before you issue
- A compliant letter before action
- Small claims track
- Debts below £10,000, limited costs recovery
- On commercial debts
- Interest and fixed compensation claimable too
Three steps, about a minute
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Describe the debt
Amount, age, debtor location and type. Six questions, or one sentence.
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Compare them blind
Fees, minimum debt, coverage and rating side by side. No names, no logos.
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We introduce you
Pick one, the name is revealed, and they contact you to agree terms.
The journey is staged: a compliant letter before action (the pre-action protocols require one, and for debts against individuals prescribe specific forms and reply periods), then a county court money claim if it’s ignored, then judgment - and enforcement if the judgment itself is ignored. Costs and interest often ride along: on commercial debts, statutory interest at 8% plus base rate and fixed compensation can be claimed in the proceedings.
Below £10,000 most claims are allocated to the small claims track, where legal costs recovery is limited - which is why fixed-fee or no-win-no-fee litigation support often beats hourly-rate solicitors for ordinary trade debts. Above that, cost-shifting changes the calculus and proper advice matters more.
Collect Compare includes vetted partners that handle litigation stages - compared blind, free for you. And if you just need the letter, our calculator generates a statutory-interest letter before action at no cost.
How to choose an agency for debt litigation
- Fixed-fee or no-win-no-fee litigation support vs hourly billing
- Compliance with pre-action protocols (especially against individuals)
- Track record of actually issuing claims - not just letterheads
- A joined-up path from claim to judgment to enforcement
How agencies charge for debt litigation
Most use one of these, or a blend. The model matters more than the headline rate, because it decides what happens if the debt proves hard to collect.
- No win, no fee
- A share of what is recovered, nothing if nothing comes back.
- Commission
- A share of the recovery, sometimes with a small set-up charge.
- Fixed fee
- A set price per case or per letter, whatever the outcome.
- Blended
- A smaller share plus a modest fixed element.
Compare vetted agencies for debt litigation
Describe the debt - or let AI fill the form in from a sentence - and compare vetted agencies side by side, free.
Common questions about taking legal action on a debt
Do I have to send a letter before action?
Effectively yes - the courts expect pre-action correspondence, and for debts against individuals and sole traders the Pre-Action Protocol for Debt Claims prescribes the content and a 30-day reply window. Our free calculator generates a compliant statutory-interest letter for commercial debts.
What court fees will I pay?
Money claim issue fees are banded by claim value on a published court scale, and hearing fees can apply later. On top, your representation costs depend on the fee model - which is why comparing litigation partners matters.
Is small claims court worth it for a trade debt?
Often, yes - especially under £10,000 where the process is designed for businesses without lawyers. The realistic question is whether the debtor can pay a judgment; a good partner assesses that before you spend anything.
How long does a county court claim take?
It varies with the court and whether the debtor defends - undefended claims can reach judgment quickly by default; defended ones take substantially longer. No honest partner will promise a date, but they should explain the stages clearly.
General information, not legal advice. Statutory interest and compensation apply to qualifying commercial debts under the Late Payment of Commercial Debts (Interest) Act 1998 - our free calculator works out what you can add, at the correct rate for your dates.
Take the logo away and the facts have to do the work
Every agency is vetted before it can appear, no one can pay for a higher position, and names stay hidden until you decide. We are paid only when you choose an agency and we introduce you.