What is the recommended first step for recovering commercial debt?

The text indicates that commercial debt recovery is best handled by sending a pre-action protocol letter first, followed by enforcement if necessary. For corporate debtors, a statutory demand is described as a powerful tool. The content also suggests instructing a debt recovery solicitor for high-value or contested debts.

What is a statutory demand and who is it used against?

A statutory demand is identified as a powerful tool specifically for corporate debtors. It is listed alongside other debt recovery routes such as winding-up petitions, charging orders, and enforcement actions. The text implies this is a distinct route available to creditors dealing with companies that are not paying.

What enforcement methods are available if a debtor does not pay?

The page lists several enforcement options, including issuing a small claim, enforcing a County Court Judgment (CCJ), and applying for charging orders. It also mentions winding-up petitions as a route. Additionally, it notes that late payment interest can be claimed, with a reference to a statutory interest calculator for determining amounts.

When should a creditor instruct a solicitor for debt recovery?

The content advises that high-value or contested debts should be handled by instructing a debt recovery solicitor. This suggests that while some steps like sending a pre-action letter can be managed by the creditor, complex or significant financial disputes require professional legal assistance to navigate the recovery process effectively.

Are there time limits for recovering a debt?

The text references a 'debt-limitation-checker' and a 'pre-action-checklist' as available resources. While it does not explicitly detail the time limits, the presence of a limitation checker implies that time limits apply to debt recovery actions. Creditors are encouraged to use these tools to verify the status of their claim before proceeding.

All Situations

For Creditors

Debt recovery routes, statutory demands, winding-up petitions, charging orders, and enforcement.

Reviewed 2026-05-22

Common Problems

Debtor not paying — letter before claim

Issue a small claim

Statutory demand against a company

Enforce a CCJ

Late payment interest

Key Legal Topics

Debt Enforcement Law

The legal framework for enforcing civil court judgments and managing unmanageable debt, including bailiff powers, charging orders, attachment of earnings, and insolvency options.

Insolvency & Restructuring Law

Corporate and personal insolvency, administration, liquidation, CVAs, bankruptcy, and IVAs.

Useful Guides

How to File Small Claims in the County Court

How to file small claims in England and Wales: letter before claim, online issue, fees, mediation, hearing, judgment and enforcement.

Civil Procedure

Letter Templates

Letter Before Claim — Debt Recovery

Pre-action protocol letter from creditor to debtor before issuing a money claim in the County Court.

Legal Tools & Calculators

Statutory interest calculator

Interest accrued on a debt or judgment over a period.

Debt Limitation Checker

Check whether a debt is likely to be statute-barred under the Limitation Act 1980, based on the type of debt and the date of last payment or acknowledgement.

Pre-action protocol checklist

14-step checklist before issuing court proceedings.

Frequently asked questions

What is the recommended first step for recovering commercial debt?: The text indicates that commercial debt recovery is best handled by sending a pre-action protocol letter first, followed by enforcement if necessary. For corporate debtors, a statutory demand is described as a powerful tool. The content also suggests instructing a debt recovery solicitor for high-value or contested debts.
What is a statutory demand and who is it used against?: A statutory demand is identified as a powerful tool specifically for corporate debtors. It is listed alongside other debt recovery routes such as winding-up petitions, charging orders, and enforcement actions. The text implies this is a distinct route available to creditors dealing with companies that are not paying.
What enforcement methods are available if a debtor does not pay?: The page lists several enforcement options, including issuing a small claim, enforcing a County Court Judgment (CCJ), and applying for charging orders. It also mentions winding-up petitions as a route. Additionally, it notes that late payment interest can be claimed, with a reference to a statutory interest calculator for determining amounts.
When should a creditor instruct a solicitor for debt recovery?: The content advises that high-value or contested debts should be handled by instructing a debt recovery solicitor. This suggests that while some steps like sending a pre-action letter can be managed by the creditor, complex or significant financial disputes require professional legal assistance to navigate the recovery process effectively.
Are there time limits for recovering a debt?: The text references a 'debt-limitation-checker' and a 'pre-action-checklist' as available resources. While it does not explicitly detail the time limits, the presence of a limitation checker implies that time limits apply to debt recovery actions. Creditors are encouraged to use these tools to verify the status of their claim before proceeding.

When to Get Legal Advice

Commercial debt recovery is best handled with a pre-action protocol letter followed by enforcement. For corporate debtors, a statutory demand can be a powerful tool. Instruct a debt recovery solicitor for high-value or contested debts.