Q What is the quickest and cheapest way of recovering money that is owed to me? I cannot afford to use a lawyer?

A You have two choices. You can either use Money Claim online (MCOL) when the matter is straightforward. You have to register first, which is a straightforward procedure with the Money Claim Online home page on the Government’s website. The alternative is to make a small claim through the county court.

Q Can MCOL be used for any sum of money owed?

A It can be used for any sum under £100,000. It must be for a fixed sum and would be the right procedure to use, where someone simply has not paid a debt they clearly owe. There will be a court fee which can be paid by debit card.

Q Can this online claim system be used for any claims?

A No. I would not recommend using it if there is likely to be a dispute over the money owed. For example, if you are a builder and you have completed the work at someone’s house and they have not paid, but it is likely that they have not paid because they are not happy with the work carried out, then it would be best to use the small claims procedure, described below. Also, you cannot use this service to get compensation if you have been injured in an accident or to recover a deposit from a landlord.

Q What is the alternative to using Money Claim Online?

A The alternative is using the small claims procedure. You complete a claim form, which you can obtain from the court or the website, setting out the details of the claim and send it to the court which will serve the defendant by post. A fee will be payable.

Q Do we need a solicitor to use the small claims procedure?

A No. You can, of course, instruct a solicitor if you wish. The thing to remember about small claims is that you are not entitled to recover your legal costs apart from the court fees that you have paid. Therefore, any costs paid to a solicitor will not be recovered. If your debt is say £2,000, you should think twice about using a solicitor.

Q Can I claim interest on money owed through the small claims procedure?

A Yes – the rate is generally eight per cent.

Q In what circumstances would I have to go to court?

A The defendant is required to respond to the claim form within 14 days. If they do not, then you are entitled to ask the court to enter judgment. You will need to fill in a form – it can be obtained from the court or the Government website. You would have to go to court if the defendant disputed the amount owed, or you could not agree on how the debt would be repaid. In other words, an offer was made to repay in instalments which you refused to accept.