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?

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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?

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 recovery of Taxes and Duties)

For more information, see Practice Notes: The pre-action protocols and when they apply—Debt claims and

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