How can I get my money?

[redjax]

I have a signed note from a customer promising to pay a certain amount by a certain date for work carried out.

Needless to say he didn't pay. On top of that he cleared and shut his shop. He has disappeared from the face of the earth and his house is empty and up for sale.

I have been told to put a charge on his house so that when it sells, I will be paid the £10k owed to me. Is this right? If so, how do I go about it?

Advise please!

[Amy]

Re: How can I get my money?

Well, first things first. Have you written to him formally demanding payment?

You cannot just simply put a charge on someone's property, you must go through the correct process and this involves the court.

Is the amount owed to you disputed?

[redjax]

Re: How can I get my money?

No-one knows where he is. Do I write to him at his address and hope it gets forwarded to him. The amount is not in dispute at all.

[Sapphire]

Re: How can I get my money?

I would send an invoice to both his Shop and Home Addresses, giving him 7 days to pay. Hopefully they will get forwarded onto him.
Once you havn't heard back then you need to issue proceedings in court for the recovery of the money.

[redjax]

Re: How can I get my money?

Is this just normal small claims court proceedings that I need to begin if he doesn't respond, (which we know he won't).

[Amy]

Re: How can I get my money?

You start the court process off in the usual manner using an N1. Track allocation (small claims, fast track or multi track) occurs when the defence is returned to the court and an allocation questionnaire is then issued.

If, as you think, he will ignore the court papers it will not get to AQ stage.

[redjax]

Re: How can I get my money?

So what will happen then?

[Amethyst]

Re: How can I get my money?

If he ignores the papers you will get a judgment by default, in which case you can apply for a warrant for collection of the outstanding money. Have a read - Legal Beagles

It is aimed at bank claims but the process is exactly the same.

[redjax]

Re: How can I get my money?

Thanks very much for this. It really has helped. I'll start proceedings and let you know how I get on.

[Amy]

Re: How can I get my money?

You do really need to write to him in the first instance and give him a chance to pay you.

If the claim does get before a Judge you will need to show that you tried and court action was a final resort as opposed to your first port of call.