Disputed Debts

Recovering a disputed debt is not always straightforward.

Let’s start by making a clear distinction between debt recovery, which is generally concerned with undisputed debts, and situations where perhaps a dispute between parties has resulted in a debt or monies being withheld.

Contractual sums due can arise in a variety of ways, and can be enforced through a seemingly endless amount of options.

The expert Commercial Litigation Team at Wilson Browne Solicitors know their adjudication from their mediation; their arbitration from their litigation from their insolvency, and; their negotiation from their Alternative Dispute Resolution.

Best of all they can explain your options into plain,  always commercially sensible, English.

Funding options are down to earth and flexible. Where possible various forms of ‘no win no fee’ can be considered,  backed by legal expenses insurance from market leaders Temple the playing field can be levelled, and cash flow concerns addressed.

Find out more about how we work with Temple Legal Protection here.

Disputed Debts and Debt Recovery

When a Debt Becomes a Dispute.

Recovering an unpaid debt is often straightforward when the debtor accepts that the money is owed. However, many commercial debt recovery matters become more complex because the debt is disputed.

A dispute may arise because:

• The customer claims goods or services were defective
• There is disagreement over the terms of a contract
• An invoice is challenged as inaccurate
• Work is alleged to be incomplete or outside the agreed scope
• There are competing claims between the parties
• A business is withholding payment as leverage in a wider commercial disagreement

When a debt is disputed, the right approach can make the difference between a swift commercial resolution and costly litigation. At Wilson Browne, our Commercial Litigation team advises businesses across England and Wales on the most effective way to resolve disputed debt claims and protect their commercial interests.

Is the Debt Genuinely Disputed?

Not every debt that is labelled as “disputed” is genuinely in dispute. Some debtors raise objections at a late stage in an attempt to delay payment or avoid legal action. Others may have legitimate grounds to challenge all or part of the amount claimed.  Before taking action, we will assess:

• The strength of the contractual position
• The available documentary evidence
• Correspondence between the parties
• Whether a genuine legal dispute exists
• The most commercially sensible route to recovery

Understanding the nature of the dispute at an early stage helps avoid unnecessary costs and allows a strategy to be developed quickly.

Our Approach to Disputed Debt Claims

Every dispute is different. Our lawyers focus on achieving the best commercial outcome while keeping costs proportionate. Depending on the circumstances, we may assist with:

• Negotiation. A well-presented legal challenge can often encourage meaningful settlement discussions and avoid formal proceedings.
• Mediation and Alternative Dispute Resolution (ADR). Many commercial debt disputes can be resolved through mediation or other forms of ADR, saving time, legal costs and management distraction.
• Adjudication. Particularly effective in construction and engineering disputes, adjudication can provide a fast and enforceable decision.
• Arbitration. Where contracts contain arbitration clauses, we can guide businesses through the arbitration process from start to finish.
• Court Proceedings. Where settlement is not possible, we have extensive experience pursuing and defending claims through the County Court and High Court.
• Insolvency-Related Action. In appropriate cases, statutory demands, winding-up petitions and other insolvency procedures may be considered as part of a wider recovery strategy.

What Can You Recover?

Depending on the circumstances, you may be entitled to recover:

• The outstanding debt
• Contractual interest
• Statutory interest
• Compensation under the Late Payment of Commercial Debts legislation
• Legal costs
• Court fees and enforcement costs

Our team will advise on the likely recoverable sums and the commercial viability of pursuing a claim.

Why Choose Wilson Browne?

Commercially Focused Advice. We understand that recovering money is only one aspect of a wider business relationship. Our advice is practical, strategic and commercially driven.

Transparent Costs. We provide clear information about costs from the outset and explore funding options wherever appropriate.

Experienced Dispute Resolution Lawyers. Our Commercial Litigation team works with businesses of all sizes, from owner-managed companies to larger organisations operating across multiple sectors.

Flexible Funding Options. In suitable cases, we may be able to explore Conditional Fee Agreements (“no win, no fee”) and legal expenses insurance options.

Contact the team for a free no obligation discussion.