united-kingdom debt payment collections foreign-relations
Is it possible to sue a UK based company from the US regarding debt collection?
<p>I have a US-based LLC. The LLC is a service oriented company as opposed to product oriented. And all work is performed in the US. A UK-based client is delinquent in payments.</p>

<p>The amount in dispute is under $10k. </p>

<p>Is it possible to effectively implement some sort of debt collection from the US for a UK-based company (with no US offices)? </p>

<p>Given the value of the claim, is it worthwhile to pursue any formal legal action (small claims)? If so, what country would the legal action need to originate from? Would one file in the US and note the foreign defendant or would one file, as a foreigner, in the home country of the defendant?</p>

<h2>Yes it is kind of possible</h2>

<blockquote>
  <p>what country would the legal action need to originate from? Would one
  file in the US and note the foreign defendant or would one file, as a
  foreigner, in the home country of the defendant?</p>
</blockquote>

<p>You can go either way. It is not obtaining the judgment that is the biggest trouble here, but enforcing it.</p>

<p>You will need:</p>

<ol>
<li>A UK mailing address. Services like <a href="https://www.scanmypost.co.uk/" rel="nofollow noreferrer">ScanMyPost</a> will suffice.</li>
<li>Some money to pay the court <a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/789201/ex50-eng.pdf" rel="nofollow noreferrer">fees</a>.</li>
<li>Time, tenacity and patience to follow through the procedure and fill all necessary forms.</li>
<li>Be lucky in that the defendant actually has something to pay the debt with.</li>
</ol>

<p>There are two stages:</p>

<ol>
<li>Obtain a court judgment in your favour.</li>
<li>Unless the defendant pays you, enforce the judgment.</li>
</ol>

<h2>Obtaining court judgment in the UK</h2>

<p>In the UK, the "small claims court" functions are executed by <a href="https://www.gov.uk/government/organisations/hm-courts-and-tribunals-service" rel="nofollow noreferrer">HM Courts &amp; Tribunals Service</a>. The specific service is called "<a href="https://www.gov.uk/make-court-claim-for-money" rel="nofollow noreferrer">Claim for money</a>" which can be filed online via their <a href="https://www.moneyclaim.gov.uk/web/mcol/welcome" rel="nofollow noreferrer">old</a> or <a href="https://www.moneyclaims.service.gov.uk/eligibility" rel="nofollow noreferrer">new</a> system.</p>

<p>So, basically, you file the online form, pay the fee by credit card and wait for defendant's response. If they do not respond, you ask the court to make a judgment (in my case it took 10 weeks from filing claim to getting judgment). If the defendant responds and defends themselves, expect much longer wait and uncertain outcome.</p>

<h2>Enforcement</h2>

<p>So, you and the defendant have both received court judgment saying that they must pay you. But they are not paying.</p>

<p>There is a <a href="https://www.theguardian.com/money/2010/nov/20/small-claims-court-enforce-judgment" rel="nofollow noreferrer">range of options</a> you can choose from:</p>

<ul>
<li>County Court <a href="https://www.moneyclaimsuk.co.uk/warrant-of-control.aspx" rel="nofollow noreferrer">Warrant of Control</a> (claims from £50 to £5,000). Court bailiff will go to the defendant's address and try to seize goods that can be easily sold.</li>
<li>High Court <a href="https://www.moneyclaimsuk.co.uk/writ-of-control.aspx" rel="nofollow noreferrer">Writ of Control</a> (claims from £600).</li>
<li><a href="https://www.gov.uk/government/publications/form-n337-request-for-attachment-of-earnings-order" rel="nofollow noreferrer">Attachment of earnings order</a> (you ask the court to order the defendant's employer to deduct his earnings in your favour).</li>
<li><a href="https://www.gov.uk/government/publications/form-n349-application-for-third-party-debt-order" rel="nofollow noreferrer">Third-party debt order</a> (a.k.a. "Garnishee Order") — if you know the defendant's bank account details. Read about potential pitfalls <a href="https://lovetts.co.uk/news/debt-recovery-using-a-third-party-debt-order/" rel="nofollow noreferrer">here</a>.</li>
<li><a href="https://www.gov.uk/government/publications/form-n379-application-for-charging-order-on-land-cpr-part-73" rel="nofollow noreferrer">Charging order</a>: you will only get paid if the defendant sells their land.</li>
<li><a href="https://www.gov.uk/apply-to-bankrupt-someone" rel="nofollow noreferrer">Bankrupt the defendant</a> (big court fees!).</li>
</ul>

<hr>

<p>Alternatively, you could always hire a UK lawyer but then you would probably not need this answer.</p>
