Disputed Debts and Non-Debts

A disputed debt typically is a disagreement between the creditor and the debtor re. the terms of payment or details of the works/services performed. This dispute constitutes a breach of the contract although, in reality, this dispute often arises from a misinterpretation of the contract entered into by both the creditor and the debtor.

You will want to enforce the terms of your contract. Be careful that your debtor and the product/business sector in which you are engaged allows you to enforce the terms of your contract.

It is crucial to know that a disputed debt is a non-debt as, for a debt to be due, both parties need to acknowledge its existence. No matter what your view is of the invoice and debt on your books, if the debtor has rejected the debt, then there is no acceptance of the debt being owed by them. 



Mediation and Negotiation

In the event of a debt being disputed, the first stage is to consider and to embark upon careful negotiation regarding the debtor’s viewpoint where the strengths and weaknesses to his argument are assessed. 

Failure to act appropriately at this stage could prolong and aggravate the dispute. The Courts like to see negotiations taking place and concerted efforts being made on each side to understand the opposite position. Ensure that you bend over backwards to seek to understand the situation. 

You will find further details on the Debt Collection Mediation page.  

If your case is strong and supported by strong evidence, then UK-Debt Collection can aid you to turn this disputed debt into a debt that is collectable. To do this, the only course of action is to obtain a Court order to that effect.  The Court order will deftly set aside the many excuses for non-payment you may have received to date.



Ordering the Debtor to pay

As a disputed debt is a non-debt or, in other words, a debt is only a debt if both the creditor and the debtor agree that this is so, the only way forward is to start Litigation, bearing in mind that pre-litigation mediation will bolster your position.  If successful, litigation will result in a judgement in your favour, ordering your debtor to pay your debt.



Pre-Action Protocol 

The Pre-Action protocol is used in certain but not all types of debt collection. It is essential that it be performed correctly and follow the correct procedure. Otherwise, your claim could be thrown out by the Court. 


Paralegal services and Processing a Claim

Don’t waste your money. Ensure that you instruct UK-DEBT COLLECTION to act as your paralegal and make certain that the details of your claim are written up correctly, with correct claim documentation attached. Your case will then be unarguable & the debt due.

Small claims, defence counterclaim, mediation, time to respond, defence entered - UK-DEBT COLLECTION will act as your paralegal to guide you through these possible routes for your claim.  This will minimise delays and avoid possible mistakes in processing a “County Court Claim” or “Money Claim Online” claim.