At Debt-Claims, we do not work on a commission or recovery basis and every instruction receives exactly the same high level of service. As such, we are happy to accept instructions for debts of all values, including low debts that other firms might not take instructions on.
Due to court rules however, there are some exceptions on minimum values of debts which are discussed below.
There is no minimum value that must be owed to you for any pre-action correspondence. With our Late Payment Demand letters starting at just £2.50 (plus VAT) it is entirely viable for you to instruct us to collect debts for any value. What’s more, it takes around one minute to instruct us meaning that it has never been quicker or easier to collect even the smallest of debts.
Our fixed fee service is particularly appealing to clients who are owed lots of smaller debts, as often just a solicitor’s letter is all that is needed to bring about payment.
To issue court proceedings via our online portal (which is integrated with the Court’s Money Claims Online Service) the minimum debt value owed to you must be £25.00 (this includes any interest that you are claiming).
This value is set by the Courts and is not a restriction that we place. Unfortunately, for debts under £25.00 you are unable to issue court proceedings.
Statutory Demands and Insolvency Proceedings
For statutory demands and winding-up/bankruptcy proceedings, minimum debt values apply.
For money owed by individuals and sole traders, they must owe at least £5,000.00 (not including any interest, compensation or costs) to serve a statutory demand and issue a bankruptcy petition.
For money owed by companies or limited liability partnerships, they must owe at least £750.00 (not including any interest, compensation or costs) to serve a statutory demand and issue a winding-up petition. During the coronavirus pandemic, the minimum debt value for companies was temporarily increased to £10,000.00.