LEXLAW Solicitors & Barristers
Unpaid invoices and bad debts cost UK businesses billions each year. This comprehensive 2026 guide explains every stage of commercial debt recovery in England and Wales, from pre-action letters and court proceedings to statutory demands, winding-up petitions, and judgment enforcement, with relevant case law and practical strategic advice.
A letter of credit is a powerful trade finance instrument that protects both buyers and sellers by reducing payment risk in domestic and international transactions. When structured correctly, it provides certainty of payment, improves cash flow, and limits exposure to counterparty default.
The Court of Appeal in London International Exhibition Centre plc v Allianz & Ors [2024] EWCA Civ 1026 upheld the High Court’s ruling that policyholders can recover COVID-19 business interruption losses under “at the premises” disease wordings, holding that each case of COVID-19 at the insured premises formed part of the concurrent cause of national closure orders.
The High Court held that Paul and Joanne Rutter unlawfully reduced their directors’ loan account by £560,000 through a back-dated dividend and misapplied over £256,000 of company funds on their personal properties while Rut5 Ltd was approaching insolvency, breaching duties under the Companies Act 2006 and the Insolvency Act 1986.
Contrary to common belief, unpaid High Court & County Court judgments (CCJs) do not always become unenforceable after six years. With proper legal procedures and court permission, creditors can successfully enforce judgment debts many years old.
Compulsory mediation is now mandatory for small claims under £10,000. Our litigation specialists are masters of ADR and regularly help clients navigate mediation in England & Wales.
The Respondent to an application to set aside a statutory demand must bear the costs of the application, even if they withdrew the demand shortly after the application was filed.
The High Court set aside a default judgment because the Claim Form had been served on “empty offices” during the COVID-19 lockdown. Despite the Claimant’s solicitors attempts to engage in pre-action correspondence and check requirements for service, the Court was satisfied that the Defendant showed real prospects of successfully defending the claim.