Blog - The Verdict
MSB Solicitors Liverpool
MSB Blog - The Verdict
Colin Wynne

Colin Wynne

Thursday, 01 August 2019 14:14


And what it means for Creditors
The new Pre-Action Protocol (PAP) came into force in October 2017 and it affects ALL businesses who are dealing with sole traders or private individuals. The Protocol does not affect Limited Companies or Partnerships.

What is the objective of the Protocol?
The objective of the protocol is to encourage creditors and debtors to attempt to resolve matters or at least attempt to narrow down any issues, before bringing the matter before the Court so ensuring that litigation is a last resort.

So how is the Protocol different?
Prior to October 2017, if you were struggling to get your invoices paid, it would have been sufficient to simply send to the debtor a letter before action giving them 7 days to pay, or you would issue a claim against them, at Court. Since the implementation of this new legislation, it is no longer sufficient to do this and you now have to send a fairly detailed letter before claim and give a minimum of 30 days notice before issuing a claim at Court.

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