Creating payment plan for contractor to sign

eurobabe

Hi after issuing my final letter before court action to a contractor who's work was not fit for purpose,they have agree to pay me a set amount in a few installments.I can find some template letters online for them to sign, but would also like to know whats important to include, obviously the dates if payment, the amounts and that if they miss payments ill then claim the money back via court. Also should they send the original paper signed version to me or is it OK digitally? 

GrubbyGirl_2

Rather than sating that if a payment is missed then money will be claimed via the court I'd suggest that if a payment is missed the whole amount becomes due. If you word it the way you suggest there is a danger that if you go to court you can only claim the payments he's missed not the full amount.  He already knows you'd be prepared to go to court ,

Silver_Shark

I would suggest you don't agree to a payment plan and claim the whole amount through Money Claim Online (MCOL) 

saajan_12

Exactly what entity would it be that owes you eg a person or a Ltd company? The wording of such agreements is less important than how you can practically enforce it - what if he finds he can't afford it part way through the payment plan and divests from the company or moves around assets? 

Also how long is the payment plan - if several months or years then are you expecting any interest? 

I'd get a clear statement of the total amount owed and interest if any. You anyway have the right to go to court. 

user1977

I would continue with court action if they can't pay in full now, and you can always then fall back on enforcing the judgment if they don't comply with the payment plan.

the_lunatic_is_in_my_head

Silver_Shark said:

I would suggest you don't agree to a payment plan and claim the whole amount through Money Claim Online (MCOL) 

I would agree with this, but wondered, could refusing a payment plan affect awarding of costs? 

user1977

the_lunatic_is_in_my_head said:

Silver_Shark said:

I would suggest you don't agree to a payment plan and claim the whole amount through Money Claim Online (MCOL) 

I would agree with this, but wondered, could refusing a payment plan affect awarding of costs? 

Don't think so (assuming the full amount being claimed is actually overdue).

Silver_Shark

If this is from the OP's previous query about a company making excuses to not come out to fix leaks

following their shoddy roofing work, what are the chances of them agreeing to honour a payment plan.

eurobabe

Hi theyve said they cant afford to pay it all in one chunk so Ive asked for it in a few payments. If they fail Ill then go through small claims.At least then Ill have shown Id made the effort

eurobabe

user1977 said:

I would continue with court action if they can't pay in full now, and you can always then fall back on enforcing the judgment if they don't comply with the payment plan.

Why would you go this route and not attempt to settle before small claims?

user1977

eurobabe said:

user1977 said:

I would continue with court action if they can't pay in full now, and you can always then fall back on enforcing the judgment if they don't comply with the payment plan.

Why would you go this route and not attempt to settle before small claims?

So you don't have a further delay in getting the judgment.