Guide
Enforcing an Unpaid Claim: How to Get Your Money Back
When an invoice goes unpaid, waiting rarely helps. A structured approach noticeably improves your chances of payment and avoids unnecessary cost. This guide sets out the usual order of steps.
Start with the friendly route: the payment reminder
Before things turn formal, a calm payment reminder is worth sending. Often an invoice has simply been overlooked. State the outstanding amount, the original invoice number and a concrete payment date.
A reminder is not legally required, but it creates a documented first attempt and keeps the relationship businesslike. Set a short but fair deadline, usually seven to ten days.
The formal demand and default
If the other side still does not pay, the next step is a formal demand. At the latest, a demand after the due date puts the debtor in default. Once in default, you may claim default interest and the necessary costs of pursuing the claim.
In dealings between businesses, default can arise even without a demand, for example 30 days after the invoice is received. Keep every demand in writing so the moment of default can be proven.
Public pressure and clean documentation
In parallel, it helps to document the claim visibly and verifiably. A maintained file with evidence increases the pressure and shows that you are pursuing the matter seriously.
What matters is sticking to the facts: only the actual claim and its history are documented. Exaggeration or insults harm your own position.
The court route: order for payment and title
If payment still fails to arrive, the court order for payment is often faster and cheaper than a lawsuit. An uncontested order for payment becomes an enforcement order, that is, an enforceable title.
With a title you can enforce through a bailiff. A title only becomes time-barred after 30 years, so you secure the claim for the long term.
Frequently asked questions
Do I need a lawyer before the order for payment?
Not necessarily for the order for payment. The procedure is standardised and can be started yourself. For disputed or large claims, legal advice is still worthwhile.
When can I charge default interest?
From the moment default begins, usually after a formal demand or 30 days after the due date. The rate follows the statutory default interest rate.
Is it worth enforcing even small amounts?
Often yes. The court order-for-payment procedure in particular is comparatively cheap even for small amounts and deters through its consequences.
This article is for general information only and does not replace individual legal advice.