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Legal Routes of Debt Recovery
There are different legal routes of debt recovery depending on the amount of money that needs to be recovered. The courts involved are either the County Court or the High Court.
Most claims are issued in the County Court and this is where a claim should first be made. County courts deal with a range of different claims, which includes debt recovery. If the claim is larger and more complicated, it will in most circumstances be heard in the High Court.
Within the system of County Courts, there are three tracks of case management. These are the small claims track, the multi-track and the fast track. A claim first needs to be made to the County Court and defended. It will then be allocated to one of the tracks, depending on the value of the claim. If the claim is more than the small claims limit of £5,000, it might be prudent to use the services of a solicitor.
The small claims track limit of £5,000 involves claims such as goods not supplied, faulty goods and outstanding debt. The fast track deals with cases involving sums between £5,000 and £20,000 and the multi-track is for complex cases and all cases that involve more than £25,000.
A solicitor will be required for cases in the High Court as it is a highly formal venue where complex points of law might be discussed. A strong case should be built for a claim and consideration given to how the costs will be met.
To make a claim, the HM Courts & Tribunals Service (HMCTS) Money Claim Online service can be used or a claim can be issued at a local court. There is still time at this stage to try alternative resolution methods to resolve the matter and avoid the need for court action. However, a final warning letter should in any case be sent to the defendant before any legal process begins.