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Filing a Money Claim: Everything you need to know

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Filing a Money Claim- Everything you need to know

  • Late payments are a common problem for Small and Medium Enterprises (SMEs), which can create cash flow problems, stifle business growth, and differentiate insolvency and profitability. You can make a money claim online if you think a person or organization owes you money and will not pay you back.

Writing a Letter Claim

  • Before you start your money claim, it is good to write a formal letter to the person or business you disagree with (they are called the ‘defendant’). This is called a ‘letter before claim’ or a ‘letter before action’. You will need to do this even if you have already written to them to complain and if the amount claimed is high or the matter complex, they can have a counterclaim and it is advisable to use legal help. If the letter before the claim does not resolve the problem, you can start your claim by filling in a form.
  • Write ‘Letter before claim’ at the start of your letter to show this is a formal letter. Your letter should include-
    • Your name and address
    • A summary of what has happened
    • What you want the person or business to do about it
    • How much money you want and how you have calculated that amount
    • A deadline for reply, which could be usually 14 days
    • That you will start court proceedings if you do not get a reply

Filing the Money Claim

  • You can either fill in the claim form online or download and print it. Filing a claim requires a small fee, which varies based upon how much you are owed. The fees start at £25. A money claim can be filed only if :
    • Normally, a small claim is under £10,000.
    • If you are over 18 or your claim is against someone who is over 18.
    • If one has an address in the UK.
    • You are not claiming under the Consumer Credit Act 1974.
    • One is not claiming personal injury.
    • You are not claiming a tenancy deposit.
    • One does not need help with court fees.
    • You are not making a claim against a government department or agency, for example, HMRC or DVLA.
    • One is not claiming to get compensation for an accident or injury.
    • You are not claiming to get your tenancy deposit back from your landlord.

What happens next?

What happens next depends on whether the debtor agrees to pay the amount or decides to defend the claim and/or counterclaim. The debtor has 14 days to respond, after which time if there is no response you may decide to issue a County Court judgment (CCJ). Many individuals and businesses do not want a CCJ against their name as all CCJs are on the public record and can affect any credit search made against the debtor’s name and future credit. But if the debtor does defend the claim, then it is likely that the case will get a hearing in court. If you get it wrong the defendant may counterclaim and you may lose more.

For expert assistance regarding filing a money claim, contact or WhatsApp us on 07583452230 and we can connect you to the right professional. Visit to find out more about how we can help you with our other services. If you find this information useful, please follow our social media platforms, like, and share it.

Reina D'costa

Dual qualified, experienced, practical and proactive solicitor. Founder of Bizlaw UK, a new model legal service consultancy.