A settlement agreement is one way of settling a dispute that exists between two parties. Generally, the dispute will have arisen out of an earlier contract and the parties will agree under the settlement to new terms to settle the dispute. This will generally involve an amount of money being paid by one party to the other.
Generally, most settlement agreements are enforceable under law in the same way as any other contract would be. When you’re the party that’s supposed to receive money under the agreement and the other party fails to make payment, it can create further issues – despite the agreement being there to settle the dispute.
Generally, by this point, relations between the parties will have deteriorated and beginning legal proceedings to enforce the agreement becomes necessary.
Once you have registered for our Debt-Claims portal and entered some basic details about the party which ones you money, we will send a bespoke Letter Before Action (LBA) to them which is specific to the facts of your settlement agreement. With Debt-Claims, our LBA costs just £12.50 and generally, around 90% of parties will make payment after an LBA has been sent.
If the party doesn’t make payment and legal proceedings are required, then Debt-Claims are here to guide you through the process. Surprisingly, issuing court proceedings are not as expensive as you might think and for all unchallenged small claims matters (less than £10,000) we only charge you the costs that are recoverable from the other party – meaning that the legal process cost neutral.