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Debt Recovery

OUR DEBT RECOVERY WORK

These costs apply where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not needed.

Matters usually take around 2-12 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgement in default. If enforcement action is needed, the matter will take longer to resolve. The time it takes to recover a debt from receipt of instructions from you to receipt of payment from the other side, depends on whether or not it is necessary to issue a claim and whether  enforcement action is needed.

If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which could be on a fixed fee (e.g. if a one off letter is required), or an hourly rate if more extensive work is needed.

You should note that VAT will be charged on solicitors’ costs referred to below but not court fees and is not recoverable from the debtor, but can be reclaimed by you if you are VAT registered (unless exceptionally you operate under the VAT Flat Rate Scheme).

STAGE 1 – Letter Before Action

Action
Fixed fee (excluding VAT)
Solicitor’s letter to the  debtor threatening Court proceedings (to include a claim for interest and statutory compensation where applicable) 
 
£10

 

STAGE 2 – Follow up action, if required, prior to taking court action

Action
Fixed fee (excluding VAT)
Follow up calls and letters to debtor, checking status of debtor, payment negotiations with debtor and liaising with client (up to 1 hour’s work)
£60

 

STAGE 3: Taking court action against the debtor

If the debt is not recovered after Stages 1 and 2, we can proceed to issue a County Court Claim for a money judgment after discussing this with you. At this stage, our work will usually involve preparing and sending a Claim Form to the County Court. The Court will then issue and serve this on the debtor. We set out below our fixed fees for this service and information as to the amount of solicitors’ fees and (where applicable) additional debt recovery costs (as set our below) that may be payable by the debtor.

Value of claim
Our fee (excluding VAT)
Court fee
Total
Up to £300
£80
£35
£115
Greater than £300 but no more than £500
£80
£50
£130
Greater than £500 but no more than  £1,000
£100
£70
£170
Greater than £1,000 but no more than £1,500
£120
£80
£200
Greater than  £1,500 but no more than £3,000 
£120
£115
£235
Greater than £3,000 but no more than £5,000
£120
£205
£325
Greater than £5,000 but no more than £10,000
£180
£455
£635
Greater than £10,000 but no more than £15,000
£180
5% of the value of the claim
 
Greater than £15,000 but no more than £25,000
£200
5% of the value of the claim
 
Greater than £25,000 but no more than £50,000
£250
5% of the value of the claim
 
Greater than £50,000 but no more than £100,000
£300
5% of the value of the claim
 

 

STAGE 4: Follow up action if debtor fails to pay the sum claimed and does not file a defence

Action
Fixed fee (excluding VAT)
Entering default judgment, follow up correspondence  and telephone calls to the debtor and discussing enforcement options (up to 1 hour’s work)
£60


Anyone wishing to proceed with a claim should note that:

  • The VAT element of our fee cannot be reclaimed from your debtor.
  • Interest and compensation may take the debt into a higher banding, with a higher cost.
  • The costs quoted above do not include the costs of enforcement action, such as the bailiff, if this is needed to collect your debt.

FEE EARNERS

Information on the fee earners that will work on your case will be provided to you in a welcome email to you and you will be updated on any changes to the fee earners throughout the course of your relationship with us. For full details on our fee earners, please click here.