Tips on negotiating and enforcing a contract
Inevitably, at some stage, when you run any business, you’re going to encounter customers who are slow payers, late payers and those that simply won’t pay at all. Cash flow is an integral part of your business, especially during a recession, so it’s imperative that you keep these types of customers to a minimum and also know how to tackle them when they don’t pay on time. We recommend that you follow the tips here to help you to achieve this.
Summary of debt recovery process
This is intended to be a short guide on the process involved with both debt recovery and pursuing a claim via the small claims process in Northern Ireland. For more comprehensive guidance, please see Factsheets (both provided below) on the Northern Ireland - Small Claims Procedure and Northern Ireland - Civil Court Judgments - How to Enforce.
Guidance notes on pre-action protocol for commercial action
On 6th February 2023, the Pre-Action Protocol for Commercial Actions (“PAP”) was introduced for all county court matters in Northern Ireland. These guidance notes cover the aims and processes involved.
For use in Northern Ireland only.
Letter before action template for Northern Ireland
This template is for use when the matter relates to commercial actions.
For use in Northern Ireland only.
Small Claims Procedure
In general, a small claim in Northern Ireland is a claim which the value doesn’t exceed the sum of £5,000 in total.
This factsheet applies in Northern Ireland only.
Civil Court Judgements – how to enforce
The civil process for obtaining payment of a debt or damages is twofold. The first involves commencing an action in court and obtaining judgment with or without a trial. The second is the enforcement procedure. The judgment is not enforced automatically, and you have to take steps to enforce any judgment granted.
This factsheet applies in Northern Ireland only.
Bankruptcy
Bankruptcy is a serious matter. If a party either declares themselves bankrupt, or is declared bankrupt at the instigation of a creditor (a party to whom they owe money) they will have to give up (with a few exemptions) any possessions of value, including any interest or value they may have in their own home. Bankruptcy can be a way of dealing with mounting debts that a party (known as a debtor) is incapable of paying.
This factsheet applies in Northern Ireland only.