At a glance.

  • Establish the correct debtor, agreed terms and amount outstanding.
  • Separate a genuine payment dispute from an admitted but unpaid debt.
  • Assess recovery prospects alongside the legal route and likely cost.

Build a reliable account of the debt

Start with the agreement, purchase order or other basis for the work supplied. Reconcile the invoices, payments, credits and balance claimed. Identify the contracting party accurately rather than relying on a contact person or trading name. A lawyer needs to understand how the sum arose and whether your records support each part of the amount demanded.

Keep the performance evidence

Invoices alone may not answer a dispute about delivery or quality. Preserve delivery notes, acceptance records, work reports and communications about performance. If the customer complained, keep the complete exchange and record any remedial work or agreed adjustment. A clear chronology helps distinguish an unpaid debt from a broader contractual dispute.

Review what the debtor has said

An acknowledgement, proposed payment plan or disputed invoice may affect the assessment. Keep communications in context and avoid selecting only the messages that support your position. A promise to pay is useful information, but its legal significance depends on the wording and circumstances. Where several entities are involved, establish who made the statement and on whose behalf.

Consider a proportionate response

The next step may involve further negotiation, a formal demand or legal proceedings. It depends on the terms, evidence, amount and practical position. Do not assume that a demand guarantees payment or that every debt qualifies for a particular court procedure. Discuss the available route and the consequences of any proposed settlement, instalment plan or security arrangement.

Think beyond obtaining a judgment

A judgment may still require enforcement, and actual recovery can depend on the debtor’s assets and financial position. Information about insolvency proceedings or existing judgments may be relevant. A winding-up process has its own requirements and should not be treated as a routine substitute for determining a genuinely disputed debt. Seek advice on the appropriate purpose and procedure.

Prepare the recovery discussion

Bring the agreement, reconciled account, correspondence and evidence of supply. Explain any time-sensitive issue and whether preserving the commercial relationship matters. Ask about scope, fees, disbursements and recovery prospects before proceeding. Legal and procedural time limits may apply, so early review can be more useful than waiting until records become difficult to locate.

This guide is general information, not individual legal advice. It does not cover every requirement, exception or time limit. Your situation needs a specific assessment of the facts and current law. Contact the firm to discuss an engagement.