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5-10-2017

A pre-action protocol for debt claims came into force on 1 October 2017 and requires business creditors to revise their pre-action processes to ensure they are compliant.

Moon Beever London office

The protocol applies to cases where a business is claiming payment of a debt from an individual or sole trader, but does not apply to business-to-business debts. The aim is to encourage early communication between the parties with the hope that the matter can be resolved without the need for court proceedings.

If a business does pursue a debt against an individual or sole trader to court, the court will expect the parties to have complied with the protocol.

Full details of the protocol to be followed by the creditor and the response from the debtor are available on the Ministry of Justice website here.

TESTIMONIALS

Standout firm known for its personal insolvency work for clients including private companies, individuals and governmental institutions. Frequently acts for insolvency practitioners, assisting with the realisation of assets, both in the UK and abroad.

Chambers and Partners

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