Q&As

Does the Pre-action Protocol for Debt Claims apply where the creditor is a sole trader and the debtor is a limited company?

read titleRead full title
Produced in partnership with Karen Hellier of Clarke Willmott
Published on LexisPSL on 16/04/2018

The following Dispute Resolution Q&A produced in partnership with Karen Hellier of Clarke Willmott provides comprehensive and up to date legal information covering:

  • Does the Pre-action Protocol for Debt Claims apply where the creditor is a sole trader and the debtor is a limited company?

Does the Pre-action Protocol for Debt Claims apply where the creditor is a sole trader and the debtor is a limited company?

The introduction to the Pre-action Protocol for Debt Claims specifies that it applies to any business (including sole traders and public bodies) claiming payment of a debt from an individual (including a sole trader). Accordingly, where the creditor is a sole trader and the debtor is a limited company the Pre-action Protocol for Debt Claims will not apply.

In addition to the situation described above, the Pre-action Protocol for Debt Claims does not apply:

  1. where the debt is covered by another pre-action protocol, such as Construction and Engineering or Mortgage Arrears, or

  2. to claims issued by HMRC that are governed by CPR PD 7D (Claims for the

Related documents:

Popular documents