What to Do When a Client Refuses to Pay an Invoice

The Escalation Path

If a client refuses to pay, follow this sequence: reminders → Letter Before Action → Small Claims Court → bailiffs.

Step 1: Payment Reminders (14-30 days)

Send 2-3 friendly payment reminders over 14-30 days (see payment chaser template above). Document all communication.

Step 2: Letter Before Action (formal notice)

A solicitor sends a formal letter stating:

• Full details of the debt
• Invoice numbers and dates
• A deadline for payment (typically 14 days)
• Warning that court action will follow if unpaid
• Your legal costs may be recoverable

Cost: £100–£300 via a solicitor. Many clients pay when this arrives (looks serious).

Step 3: Small Claims Court (for amounts under £10,000)

If no payment after the Letter Before Action:

1. File a claim at your local County Court
2. Court sends notice to defendant
3. Defendant has 14 days to respond
4. Case heard (usually without need to attend — decided on papers)
5. If you win: Court issues a Judgment

Cost: £40–£300 depending on claim amount. If you win, court costs are recoverable from the defendant.

Step 4: Enforcement (if they ignore Judgment)

If they still don't pay after Judgment:

• Bailiff action: Court appoints a bailiff to seize assets
• Attachment of earnings: Court takes money directly from their wages
• Charging order: Court places a charge on their property

Reality Check

• Small Claims Court is relatively affordable and low-stress
• Most clients pay when they see you're serious (Letter Before Action is usually enough)
• Court process takes 3–6 months
• Enforcement is hard if they're judgment-proof (no assets)

FAQ

Can I sue for more than £10,000?

Yes, but it goes to regular County Court. More expensive and takes longer.

What if they claim they "never received" the invoice?

Your email/post records prove delivery. Keep evidence.