Debt recovery: every route to getting paid

How the three routes fit together

Debt recovery is an escalation ladder, not a menu. You start with the cheapest step that could realistically work and climb only when the debtor leaves you no choice: professional collection first, a county court claim if that’s ignored, enforcement if even a judgment doesn’t produce payment. Each rung makes the next more credible - a debtor who ignores your emails often pays when an agency letter arrives, because they know what comes after it. Read on for the journey in order, or browse recovery routes by debt type and region.

Route 1: debt collection - the professional chase

A collection agency pursues the debt on your behalf: letters, calls, negotiation, and the persistence you don’t have time for. No court is involved at this stage, and for most debts none is ever needed - a firm, courteous approach from a neutral third party changes the conversation without the personal friction of you chasing directly. Many agencies work no-win-no-fee or on commission, so cost follows results.

Best when: the debt isn’t seriously disputed and you want a cost-effective push before going legal. That covers most unpaid invoices - though landlords should note the specialist routes for commercial and residential rent arrears: see our rent arrears recovery guide for how the rules changed in 2026.

Route 2: litigation - a county court money claim

If demands are ignored or the debt is disputed, a county court claim turns “you owe me” into a County Court Judgment: the court’s confirmation the money is due, and the key that unlocks enforcement. The process is staged. A compliant letter before action comes first - where the debtor is an individual or sole trader, the Pre-Action Protocol for Debt Claims prescribes its contents and gives them 30 days to reply. Then the claim, then judgment: by default if the debtor doesn’t respond, or after a hearing if they defend. Claims up to £10,000 normally go to the small claims track, which is designed for businesses without lawyers but limits the legal costs you can recover even when you win.

Best when: the debtor won’t engage or disputes liability, and you need a judgment to enforce. More in our guide to taking legal action on a debt.

Route 3: enforcement - turning a judgment into money

A CCJ doesn’t pay you by itself. For judgments of £600 or more (other than regulated consumer credit debts), you can transfer up to the High Court and instruct High Court Enforcement Officers under a writ of control - their enforcement stages carry fixed fees that are largely added to what the debtor owes when enforcement succeeds. Smaller judgments go to county court bailiffs, and other routes suit other debtors: attachment of earnings for the employed, third-party debt orders to freeze bank funds, charging orders to secure the debt against property. The right route depends on what you know about the debtor - and part of an agency’s job is telling you when enforcement isn’t worth the fee.

Best when: you already hold a judgment and the debtor still hasn’t paid. See CCJ enforcement.

What debt recovery costs - and what the debtor pays

Agency fees come in three models. No-win-no-fee and commission agencies take a percentage of what they recover, so you pay nothing on failure; fixed-fee agencies quote up front, which can work out cheaper on larger debts. Neither model is “best” - it depends on the debt, which is why we show them side by side.

On commercial debts, much of the cost can travel to the debtor. The Late Payment of Commercial Debts (Interest) Act 1998 lets you add statutory interest at 8% plus the Bank of England base rate, fixed compensation of £40, £70 or £100 per invoice depending on its size, and often the reasonable costs of recovery beyond that. Court issue fees are banded by claim value on a published court scale, and are claimable from the debtor if you win. On the small claims track, expect to carry most of your own legal costs even in victory. The free late-payment calculator totals the interest and compensation for you.

Before you instruct anyone

• Check the debt is in time. Six years from when payment fell due in England, Wales and Northern Ireland; five in Scotland. A written acknowledgment of the debt (signed, in England, Wales and Northern Ireland) or a part-payment restarts a clock that’s still running - but don’t count on it.
• Gather the paperwork. Contract or terms, invoices, a statement of account, your chasing history. Recovery stands or falls on evidence.
• Work out the full amount. Interest and compensation on commercial debts add up - the calculator does the sums and generates a ready-to-send letter before action.
• Send that letter. A formal letter before action resolves many debts on its own, and the courts expect one before any claim.
• Be honest about the debtor. A judgment against a company with no assets is a certificate, not a payment. A good agency assesses collectability before you spend anything.
• Then compare. Compare vetted agencies blind - fees, specialisms and verified track record. Free for you: the agency you choose pays for the introduction, and no agency can pay to rank.

Scotland and Northern Ireland: what’s different

England and Wales share one court system, so everything above applies in both. Scotland differs on the mechanics: the time limit is five years, and unlike limitation elsewhere in the UK, prescription extinguishes the debt entirely once it expires - there is nothing left to chase. Smaller money claims use Simple Procedure in the sheriff court, and enforcement runs by diligence rather than English writs. Northern Ireland keeps the six-year limit but has its own courts and its own Enforcement of Judgments Office. The practical answer in both is the same: instruct an agency that genuinely covers the debtor’s jurisdiction - see our Scotland and Northern Ireland pages.

General information, not legal advice. The right route depends on your specific debt - compare vetted agencies and they’ll advise on the best approach for your case.

Common questions