Is It Worth Going To Court For An Unpaid Invoice?
Introduction
Unpaid invoices are a common headache for many businesses. And when you have exhausted your internal credit control procedure, the question arises: is it worth going to court for an unpaid invoice?
In this blog post, we will take a look at the most important factors to consider before deciding to take legal action. These include the costs, the benefits, your chances of success and the impact on client relationships.
We will also briefly look at the alternatives to taking somebody to court.
What Are The Costs Of Pursuing An Unpaid Invoice Through The Courts?
The costs of going to court will vary on a case-to-case basis. For debt claims, you will potentially have to pay:
- Court fees.
- Solicitor fees (unless you act as a litigant in person).
- Barrister fees (if your case is complicated and/or requires representation at a court hearing).
- Expert fees (if your claim is disputed and an independent expert is required to comment on a technical matter).
- Enforcement fees (if your opponent does not pay up following a judgment).
The court fees that are applicable to pursuing an unpaid invoice through the courts are set out in a document known as the EX50. This is essentially the price list published by HM Courts & Tribunals Service. There are separate fees to pay:
- at the commencement of a claim (the ‘Issue Fee’).
- if a claim is listed for a hearing (the ‘Hearing Fee’).
- if you want to pursue an interim application (the ‘Application Fee’).
- if you want the court to approve a settlement.
The issue fee and hearing fee vary according to the value of a debt. For an application, the fee is £313.00 and for a consent order, the fee is £123.00. These fees are accurate as at the date of publication of this blog post (26 August 2025).
Court fees do tend to increase year-on-year, so it is well worth checking the EX50 on a regular basis.
The solicitor fees that are applicable to pursuing to an unpaid invoice through the courts will vary from firm to firm. Our debt recovery service is based upon a fixed price list. However, many law firms still charge their clients on the basis of an hourly rate. The guideline hourly rates are recommended hourly rates published by HM Courts & Tribunals Service, based upon recommendations from the Civil Justice Council.
To keep control of solicitors fees, it is generally best to instruct a firm of fixed fee debt collection solicitors.
Barrister fees are only generally payable if a claim for an unpaid invoice is complicated or requires representation at a court hearing. Barristers are, in many cases, very expensive.
Expert fees are relatively rare in debt claims because expert witnesses are only generally required when the court requires expert evidence to determine a complex subject matter. Expert witnesses, like barristers, can be very expensive.
Enforcement fees in the UK are generally quite cheap. The most common method of enforcement for a judgment of £600.00 or more is by way of a writ of control. Enforcement agents in most cases only charge the court fees to their clients.
What Are The Benefits Of Pursuing An Unpaid Invoice Through The Courts?
The benefits of pursuing an unpaid invoice through the courts are fairly obvious:
- Obtaining payment.
- Obtaining a judgment that can be enforced in the event of non-payment.
- Sending out a message that late payment will not be tolerated.
What Are The Risks Of Pursuing An Unpaid Invoice At Court?
The risks of pursuing an unpaid invoice at court are also worth considering. These include:
- The possibility you might lost your case.
- The possibility you may have to pay your opponent’s legal costs.
- The reputational damage you may suffer if the case becomes public knowledge.
Evaluating Your Prospects Of Success
Before commencing court action to recover an unpaid invoice, it is vital that you evaluate your prospects of success. To do this, you should consider:
- Is there documentary evidence of a contract for the provision of goods and/or services?
- Did you perform all of your obligations under the terms of the contract?
- Do you have evidence of performance?
- Are all key witnesses available to give evidence at court, if required?
If you can answer ‘yes’ to all of the above questions, you may have good prospects of succeeding with your claim. If, on the other hand, you cannot, it may be wise to seek the opinion of a solicitor before embarking on court action.
Impact On Commercial Relationships
One of the most important things to consider before pursuing an unpaid invoice through the courts is the impact it will have on commercial relationships.
If you take a customer or client to court over an unpaid invoice, it is highly likely to place strain on your relationship. In many cases, it will serve to end your dealings with each other.
For this reason, it is important to exhaust other avenues before taking a customer or client to court.
What Are The Alternatives To Taking Somebody To Court?
If you decide not to pursue an unpaid invoice through the courts, there are alternatives. Indeed, the Civil Procedure Rules 1998 impose an obligation on prospective litigants to consider ‘alternative dispute resolution’. This might include:
- Negotiation.
- Mediation.
- Arbitration.
- Adjudication.
Collectively, these procedures are referred to as ‘ADR’.
Conclusion
In conclusion, there are many factors to consider in deciding whether it is worth going to court for an unpaid invoice. These include the cost, the benefits, the risks, your prospects of success and the potential damage to commercial relationships.
If you are thinking about taking a customer or client to court over an unpaid invoice, please do not hesitate to get in touch.