How to Issue County Court Claims and Obtain CCJs

Mediation
Before scheduling hearing dates, the court will write to both parties and suggest they try settling the dispute though mediation. Parties will be advised to attend a mediation centre where they can share the cost of hiring a mediator at rate of around £1,500-day.

Direction Questionnaires
If you get past the mediation stage, the court will require both parties to fill out a Directions Questionnaire. This will help the court manage the case, and decide whether the claim should be allocated to the small, fast, or multi track (see below).

Small Claims
For small claims of less than £10,000, neither party is entitled to recover their costs. As a result, it's sometimes better for claimants to represent themselves as neither party will recoup their legal expenses.

Fast Track and Multi Track
Fast track claims are valued between £10,000 and £25,000. These claims are hurried through the system, but can still take 12 to 18 months to go to trial depending on:

• How busy the court is
• The complexity of the case

Multi Track claims - for debts greater than £25,000 - are prioritised as they tend to be complex and involve more litigation.

Unless Orders
Some defendants frustrate the process by deliberately failing to comply with court-issued directions. This forces the claimant to apply for an Unless Order, which declares that unless the defendant complies by a particular date, their case is liable to be struck out of court. Unless Orders sometimes backfire because even if a litigant wins or successfully defends a claim, the courts may order them to pay all costs as they were the non-compliant party.

County Courts are loathed by claimants because even the most flimsy defence can buy a defendant an additional 6 months for a debt they’d originally agreed to pay in 30 days. As a result, it's normal for claimants to spend £10,000 to £15,000 trying to recover a £30,000 debt. Even if the claimant wins, by the end of the trial the debtor would've had their £30,000 for 12 to 18 months.

Moreover, it's become conventional that when the claimant tries to collect payment, they discover the debtor company has collapsed and reconstituted elsewhere. Consequently, claimants often prefer to chase overdue debts by issuing a winding-up petition because this action is swifter than the County Court process.

But a claimant cannot issue a statutory demand or a winding-up petition for a disputed debt. Consequently, a shrewd debtor, who has no intention of paying, will create a dispute. These types of disputes rarely come up immediately. Usually, they arise after the 1st request for payment has been made.

A claimant who's chasing a sizeable debt, but knows little about the defendant should consider applying to the court for an oral examination. This requires the defendant to attend a hearing to answer questions under oath about their:

• Income
• Assets
• Savings
• Expenditure

From the information disclosed, the claimant can decide which type of enforcement action action will best help them recover the debt.