{"id":187300,"date":"2024-04-18T06:53:57","date_gmt":"2024-04-18T05:53:57","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=187300"},"modified":"2024-05-09T06:02:32","modified_gmt":"2024-05-09T05:02:32","slug":"pre-action-debt-protocol-debt-claims","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/disputes-litigation\/pre-action-debt-protocol-debt-claims\/","title":{"rendered":"What is the Pre-Action Debt Protocol for Debt Claims?"},"content":{"rendered":"\n

When you run a business, it relies on customers to pay for its goods or services. However, sometimes customers fail to pay on time, leaving your company with outstanding debts that need to be pursued. While you may have procedures in place for chasing debtors<\/a>, some regulations dictate how court action may be taken. One such regulation is the pre-action protocol for debt claims, which outlines the necessary steps to be taken in a commercial dispute. This article will explain the purpose of the pre-action protocol for debt claims.<\/p>\n\n\n

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How to Manage a Business Dispute<\/div>\n
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This fact sheet outlines how your business can manage a dispute.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n

What is the Pre-Action Protocol for Debt Claims?<\/h2>\n\n\n\n

As a business, you need to adhere to the pre-action protocol for debt claims if individuals owe your business money. Other types of litigation, like personal injury and professional negligence claims, also have their own pre-action protocols. The court expects both you and the individual who owes your business money to follow this protocol<\/a> before initiating commercial litigation. This is because resorting to court for a business debt should be your last course of action.<\/p>\n\n\n\n

What is Involved in the Pre-Action Protocol for Debt Claims Involve?<\/h2>\n\n\n\n

As a business owner, you probably have your own informal procedures for chasing debts when someone owes you money. If these procedures do not work, you can either hire a solicitor to take the debtor to court<\/a> or do it yourself. If you choose the second option, you need to follow the pre-action protocol for debt claims. This means you have to send a ‘letter of claim’ to the debtor containing specific information. Along with the letter, include:<\/p>\n\n\n\n