Debt Litigation


Debt litigation is where a party pursues legal action against someone else, usually by taking them to court, in order to recover a debt. If you wish to pursue debt litigation, you must be able to prove that the person you are taking debt action against is in your debt.

You may be able to prove this if you had a contract with the person indebted to you. For example, you may have agreed to provide a service to the other party in return for a payment of £15,000. This agreement between yourself and the other party is a contractual agreement. If the other party does not pay you the £15,000 after you have provided them with the service then they will be in breach of contract. You will then be able to pursue debt litigation against the other party for breach of contract.

You may also be able to claim interest on the £15,000 debt under the Late Payment of Commercial Debts Act 1998 (referred to as ‘the Act’). Often in commercial contracts between two parties there is a clause which provides for charging interest on the debt in the event of late or non payment. If you did have such a clause, then you would be able to claim interest under the contract.  

Prior to commencing debt litigation, you should consider your alternatives. Litigation can be very expensive and in some cases is not worth pursuing, for example, if your opponent is bankrupt.

If you would like to obtain legal advice and information on debt litigation, Caven can put you in touch with a local specialist Civil litigation Solicitor free of charge.  So, if you have any questions or would like our help in finding Civil litigation Solicitors please call us on 08001 221 2299 or complete the web-form above.


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