If you are a UK creditor owed money by an Isle of Man based individual or company, you may be able to bring debt recovery proceedings in the Isle of Man. Since the Isle of Man is a separate legal jurisdiction to England & Wales, meaning it has its own laws and courts, it is advisable to first contact a Manx advocate who can review your particular circumstances.

Where the parties have a written contract for the provision of the goods/services, this may specify the appropriate law and jurisdiction governing the dispute. Manx case law however provides that any such exclusive jurisdiction clause is not decisive on where proceedings take place. If the contract does not specify the venue for disputes – or even if it specifies that England & Wales is the relevant jurisdiction – it may still be appropriate to file proceedings in the Isle of Man where the company is registered here and/or where the debtor is a Manx resident. It depends on all the circumstances of the case, so advice should be taken prior to issue of process in UK or the Island.

The first step in the legal process is to send a formal letter before action to the debtor providing them with a final opportunity to pay within a set timeframe. If payment is not received, proceedings may be brought for the principal sum plus interest and costs at the Isle of Man High Court. The amount of the debt will determine which pathway a claim follows. Debts of £10,000 or less will be brought in the Small Claims Procedure where there is limited recoverability of legal costs but the process is normally quicker and less formal.

If the debtor fails to respond to a claim form, the next step is to apply for default judgment and execution ordering the amount claimed to be paid. The task of enforcing any judgment awarded against a Manx debtor falls in the hands of a local coroner. If the debtor has no assets on the Isle of Man this will make enforcement difficult – accordingly, it is important to consider this at the outset of any debt claim.

M&P Legal operate a fixed fee scheme for debt recovery matters. We are experienced in advising on cross-jurisdictional debt claims and are ready to assist where necessary.

Advocate Eve Aycock works in the firm’s debt recovery team; please contact her on eea@mplegal.im if you wish to take advice.

Back to top