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PAP Financial Statement for Debt ClaimsPAP Financial Statement for Debt Claims
If a tenant replies to your letter before action with a financial statement or payment proposal, this guide helps you read it properly and decide what to do next.
Start here if you need the main guide on this issue. If your situation is narrower or you want the next practical step, go to tenant not paying rent in the UK.
If you want the wider background first, read landlord money claim guide.
Ready to act? The quickest route from here is money claim pack for unpaid rent.
PAP Reply & Financial Statement
Understanding how tenants respond to your Letter Before Action and what to do with the financial information they provide.
Understanding the PAP Process
The Pre-Action Protocol for Debt Claims sets out what should happen before you start court proceedings. After you send your Letter Before Action, the tenant may respond using the standard Reply Form and Financial Statement.
PAP Reply Form
Allows the debtor to:
- • Admit the debt in full
- • Deny the debt in full
- • Admit part of the debt
- • Propose a payment plan
- • Request more time for advice
Financial Statement
Shows the debtor's:
- • Income (wages, benefits, other)
- • Essential expenses
- • Other debts and commitments
- • Available income for repayments
- • Proposed payment amount
Important: You're expected to engage with any response reasonably. If you ignore a genuine attempt to negotiate and the court later finds you acted unreasonably, it may affect costs.
How to Handle Different Responses
Tenant Admits Debt in Full
Good news - they accept they owe the money.
What to do:
- • If they pay in full: matter resolved
- • If they propose payment plan: consider if acceptable
- • If no payment/plan forthcoming: proceed to court
Tenant Admits Part, Disputes Rest
They accept some of your claim but not all.
What to do:
- • Review what they dispute and why
- • Consider if their points have merit
- • Negotiate if appropriate
- • Proceed to court for disputed amounts if needed
Tenant Denies Debt Entirely
They claim they don't owe you anything.
What to do:
- • Review their reasons for denial
- • Check if your evidence addresses their points
- • Proceed to court - you'll need to prove your case
- • Prepare for a contested hearing
Tenant Doesn't Respond
They ignore your Letter Before Action.
What to do:
- • Wait until PAP period expires (14 days from receipt)
- • Then proceed to issue court claim
- • Keep proof you sent the LBA
- • If they don't respond to court claim either, request default judgment
Assessing Payment Plan Offers
Questions to Ask:
- Is it realistic? Does the financial statement show they can actually afford the proposed payments?
- Is it reasonable timescale? Will the debt be cleared in a reasonable time, or would it take decades?
- Are they acting in good faith? Have they engaged properly, or does this feel like delay tactics?
- What's the alternative? If you reject and get a CCJ, what would the court likely order as payment terms?
Consider Accepting If:
- • Payments would clear debt in 1-3 years
- • Financial statement shows genuine hardship
- • They have no assets to enforce against
- • Regular payments are better than nothing
Consider Rejecting If:
- • Debt would take 5+ years to clear
- • Financial statement seems incomplete
- • You know they have ability to pay more
- • They've broken payment promises before
Need to Start a Money Claim?
Our Money Claim Pack includes everything you need: Letter Before Action, Particulars of Claim, and guidance through the entire process.
Start Your Claim — £49.99Court fees from £35 extra (based on claim amount)
PAP reply form FAQs for landlords
Frequently Asked Questions
Plain-English help, the right documents, and checks that stop avoidable mistakes before they cost you months.
- We flag problems before you generate anything, so you do not waste time on the wrong route.
- Answer plain-English questions and we build the documents that fit your case.
- Preview first, fix anything that changed, and regenerate without starting from scratch.