Is it worth taking legal action for £500 or below?

I have in the past received many requests from prospective clients and/or ongoing clients about taking legal action for something that has a value of £500.  Instructing a professional to do it is not cost-effective as you generally throw good money after bad, i.e. a solicitor could cost you around £80 per hour + depending on where you are in the country.  It’s not only obtaining judgment which is key, but it’s also looking at enforcing the debt too.  Enforcement?  Yes, getting a CCJ is only half the battle, and even if you do get fixed court costs back that are added to the claim which is £100 in total, it’s worth bearing in mind that if you wish to pursue another business, be prepared for delays, headaches and stress.

Rather than using a professional, such as a solicitor – It would be better for you to concentrate your efforts on doing it yourself, using and following the process set out. Sometimes it can be an arduous process, but in the end, you have to weigh up whether or not it is a good use of your time to issue legal action when you could in actual fact concentrate your time on building your business to gain more sales.

If, however, you have a bulk of £500 debt balances, then it’s cost-effective to utilise a solicitor/debt recovery manager (such as myself), but overall on an ad-hoc one-off debt balance – it’s not worth the energy.

However, if you beg to differ, then please let me know what you think and what success stories you have by adding to the comments section below.