Property Litigation and Dispute Resolution

Recovering Arrears Owed By Tenants - A Guide

 
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RECOVERING ARREARS: ISSUING PROCEEDINGS

Given the numerous other remedies available to landlords (see Recovering Arrears), issuing proceedings should usually be a last resort.

Before issuing and serving proceedings to recover arrears, landlords need to consider whether the debtor has sufficient assets to make him worth pursuing.

Once the Claim Form and Particulars of Claim have been served, the debtor has 14 or 28 days in which to serve a Defence, depending on whether an Acknowledgment of Service is filed.

If judgment in default or summary judgment is unavailable, the Court will give directions to progress the proceedings to trial.

Advantage:
+ Puts pressure on the debtor.

Disadvantages:
- Fairly complicated procedure.
- Can take time to obtain judgment, if judgment in default/summary judgment unavailable.
- Costs often higher than with other methods of debt recovery and further costs may be incurred on enforcing any judgment.
- Some lack of control over proceedings once they are in progress.


For further information or advice please contact propertylitigation@charlesrussell.co.uk

These notes represent only an outline summary of relevant principles and detailed advice should always be sought in particular cases.