Commercial Law
Commercial Debt Recovery Barristers
Recovering unpaid invoices from other businesses, using statutory interest, statutory demands, winding-up petitions and court judgments.
Takes about 2 minutes. No obligation.
Barristers regulated by the Bar Standards Board
When a business customer stops paying, the right recovery route depends on two questions: is the debt genuinely undisputed, and is the debtor a company, an LLP or an individual trader? A clear, admitted invoice owed by a solvent company calls for a very different approach from a debt the customer says it does not owe because the goods were defective.
Under the Late Payment of Commercial Debts (Interest) Act 1998, a supplier can claim statutory interest at 8% above the Bank of England base rate on a late business-to-business payment, unless the contract sets its own interest rate. It can also claim a fixed sum for recovery costs of £40 for a debt under £1,000, £70 for £1,000 to £9,999.99 and £100 for £10,000 or more, plus further reasonable recovery costs where the fixed sum does not cover them. Where no payment date was agreed, payment is usually late 30 days after the later of receiving the invoice or the goods or services.
Against a company, a creditor owed more than £750 can serve a statutory demand at the company's registered office under section 123 of the Insolvency Act 1986. If the debt is not paid, secured or compounded within three weeks, the company is deemed unable to pay its debts and a winding-up petition can follow. This is powerful leverage, but the court treats insolvency proceedings as unsuitable for debts disputed on substantial grounds, and a debtor company can apply for an injunction to restrain a petition, often with an order that the creditor pay its costs. Where a dispute exists, an ordinary money claim, often with an application for summary judgment, is usually the safer route.
A Direct Access Barrister can advise which route fits the debt, draft the statutory demand, petition or claim, and appear at the winding-up hearing, a summary judgment application or an enforcement hearing. Your business serves the demand, issues the proceedings, pays the court fees and deposit, and keeps the ledger evidence in order. For debts owed by an individual or sole trader, a separate Pre-Action Protocol for Debt Claims applies and the insolvency route is bankruptcy rather than winding up, with a higher threshold.
What Commercial Debt Recovery Barristers Do
Choosing the Recovery Route
Advice on:
- Whether the debt is genuinely undisputed
- Statutory demand and winding-up versus a money claim
- Claiming statutory interest and fixed recovery sums
- Personal guarantees given by directors
- Retention of title over unpaid goods
- Set-off and cross-claims the debtor may raise
Insolvency Hearings
Your Barrister can appear at:
- Winding-up petition hearings in the Insolvency and Companies List or County Court
- Applications by debtors to restrain a petition
- Validation order applications
- Adjournments where payment terms are offered
- Substitution of petitioning creditors
- Bankruptcy petitions against sole traders and guarantors
Claims and Enforcement
Your Barrister can draft and argue:
- Statutory demands and winding-up petitions
- Particulars of claim including statutory interest
- Summary judgment applications
- Applications to set aside default judgment
- Orders requiring a director to answer questions on company finances
- Third party debt and charging order applications
Your Barrister prepares these documents. Your business serves them, files them at court and pays the fees.
What Your Credit Team Handles
Under Direct Access you:
- Provide the signed terms, orders, delivery notes and invoices
- Produce an aged debt statement and payment history
- Keep copies of chasers and any admissions of the debt
- Serve the statutory demand and record how it was served
- File the petition or claim and pay the deposit and fees
- Instruct enforcement agents once judgment is obtained
How Direct Access Works
- 1
Debt Health Check
Your Barrister reviews the terms, invoices and correspondence to confirm the debt is due, identifies any likely dispute or set-off, and checks the debtor's status and solvency on public records.
- 2
Final Demand
A letter before action is sent, claiming statutory interest and recovery costs where they apply. For a company debtor the Practice Direction on Pre-Action Conduct applies; for an individual or sole trader the Debt Claims protocol and its reply form must be used.
- 3
Statutory Demand or Claim
If the debt is clear and owed by a company, your Barrister may draft a statutory demand for service at the registered office. If the debtor disputes liability, a money claim is drafted instead so the dispute can be tested properly.
- 4
Petition or Judgment
After three weeks without payment, a winding-up petition can be presented and must be served and advertised in accordance with the Insolvency Rules. In a money claim, judgment may be obtained in default or by summary judgment if the defence has no real prospect.
- 5
Hearing
Your Barrister attends the petition hearing or summary judgment application, deals with any last-minute payment proposal or opposition, and asks for the appropriate order and costs.
- 6
Enforcement
If a judgment is not paid, your Barrister advises on enforcement, such as enforcement agents, third party debt orders against bank accounts, charging orders, or an order requiring an officer of the company to attend court to give information about its assets.
Does your case qualify for Direct Access?
Tell us about your matter and we'll confirm whether you can instruct a Barrister directly, then match you with the right specialist.
Prefer to talk? Call 0800 302 9921. Lines open 8am to 8pm, same-day callback.
Frequently Asked Questions
Can we charge interest on late invoices from another business?
Yes. If your contract does not set its own interest rate, the Late Payment of Commercial Debts (Interest) Act 1998 lets you claim statutory interest at 8% above the Bank of England base rate, plus a fixed sum of £40, £70 or £100 depending on the size of the debt. You can only claim the fixed sum once per invoice.
When should we use a statutory demand rather than a court claim?
A statutory demand suits a debt of more than £750 that a company owes and cannot sensibly dispute. If the customer has raised a genuine complaint about the goods or services, or has a credible cross-claim, petitioning to wind it up risks an injunction and a costs order against you. In that case a money claim, possibly with a summary judgment application, is usually the better course.
Can a company set aside a statutory demand?
Not in the way an individual can. A company served with a statutory demand it disputes usually writes to the creditor setting out the dispute and, if a petition is threatened, applies to court for an injunction restraining presentation. That is why the creditor needs to be confident the debt is undisputed before serving.
What happens to the debtor once a winding-up petition is advertised?
Banks commonly freeze the company's accounts once they learn of a petition, because payments made after presentation can be void without a validation order. That pressure often produces payment, but a petition is a class remedy for all creditors, so if the company is wound up you will rank alongside other unsecured creditors.
Can we pursue the directors personally for the company's debt?
Not simply because they run the company. Directors are personally liable only in particular circumstances, most commonly where a director signed a personal guarantee in your credit application or terms. Your Barrister can check whether any guarantee is valid and enforceable.
Can we use Direct Access for debt recovery?
Yes, and it suits businesses with an organised credit function. Your Barrister drafts and advises, and appears at hearings. Your team serves documents, files at court, pays fees and deals with enforcement agents. Fixed fees, agreed up front. Advice starts from £250 and court representation from £850, with a clear quote before any work begins.
How long do we have to recover a commercial debt?
A claim for a contractual debt must generally be brought within six years of the date payment fell due under the Limitation Act 1980. A written acknowledgement or part payment by the debtor can restart that period, so keep any letter or email admitting the debt.
Turn Unpaid Invoices Into Recovered Cash
Get advice on the fastest safe route to payment, from statutory interest to winding-up petitions.
Or call us: 0800 302 9921. Lines open 8am to 8pm, same-day callback.