Contractual Debt Claims

What Are Contractual Debt Claims?

Contractual debt claims arise when one party fails to fulfill its financial obligations as outlined in a legally binding contract. This could involve unpaid invoices, breached payment agreements, or disputes over fulfilling contractual terms. These claims are enforceable under UK laws such as:

• The Late Payment of Commercial Debts (Interest) Act 1998
• The Limitation Act 1980

These laws provide businesses the legal framework to claim unpaid debts along with interest and additional costs incurred.

Common Scenarios Leading to Contractual Debt Claims

Contractual debt claims can arise in a variety of scenarios, including:

• Unpaid Invoices: A client failing to pay for goods or services delivered.
• Breach of Contract: When the terms of an agreement, such as payment schedules, are not met.
• Unsettled Loans: When borrowed sums are not repaid within the agreed timeframe.
• Service Disputes: When disputes over delivered services lead to withheld payments.

Steps to Recover Contractual Debt

1. Review the Contract: Examine the terms of the agreement to ensure there is a clear obligation for payment and no breaches on your part.
2. Send a Formal Demand: Issue a written demand for payment, outlining the amount owed, the due date, and potential legal action if ignored.
3. Seek Legal Assistance: If the debt remains unpaid, consult a solicitor to evaluate your claim and initiate legal proceedings if necessary.
4. Pursue Court Action: File a claim in the County Court or High Court, depending on the amount involved, to recover the debt.

What Can You Claim?

Under UK Debt Recovery Laws, you may be entitled to claim:

• The Principal Amount Owed: The outstanding debt specified in the contract.
• Statutory Interest: Interest accrued on the overdue amount, typically 8% above the Bank of England base rate.
• Compensation for Recovery Costs: Fixed costs for unpaid invoices, ranging from £40 to £100 depending on the amount owed.
• Legal Fees: Costs associated with pursuing the debt claim.

Why Choose Integrity Law?

Handling contractual debt claims requires a meticulous understanding of legal procedures and contract law. At Integrity Law, we offer:

• Experienced Debt Recovery Specialists: Our team has a proven track record in resolving debt disputes effectively.
• Tailored Legal Strategies: We adapt our approach to suit your specific case and financial goals.
• Efficient Resolution: From pre-action negotiations to court proceedings, we aim to secure a swift resolution for your claim.

Protecting Your Business Interests

Unpaid debts can disrupt cash flow and impact your business operations. By pursuing a contractual debt claim with our support, you can safeguard your financial stability while reinforcing the importance of adhering to agreed terms.

Contact Integrity Law Today

If you are struggling with unpaid debts, don’t let the issue linger. Contact Integrity Law for expert guidance on contractual debt claims. Our legal professionals will assist you in recovering what you’re owed, ensuring that justice is served and your business continues to thrive. Reach out to us today for a no-obligation consultation.