Debt Recovery Fees
We are obliged to provide cost information in respect of debt recovery and the scenario we have highlighted is for advice and representation for the recovery of a debt up to the value of £10,000. For any other value of debt we would recommend that you contact our Commercial Team who have considerable experience of dealing with such matters. They would be more than happy to arrange a free initial no obligation appointment.
The information that we have provided is based on the following set of circumstances:
- an unpaid invoice;
- which is not disputed; and
- enforcement action is not required.
These costs assume that the monies are owed by a Limited Company or Partnership. Please note that if at any point the other party disputes your claim, then we will discuss any further work required and if applicable provide you with a revised estimate of costs. This could be on a fixed fee basis (e.g. if a one off letter is required), or an hourly rate if more extensive work is needed. The hourly rate will be determined by the solicitor dealing with your matter and will be agreed with you before any work is carried out.
|Debt Owed||Our Fee||Court Fee||Total|
|Up to £300||£100 plus VAT||£35.00||£155|
|£300.01 - £500||£100 plus VAT||£50.00||£170|
|£500.01 - £1000||£200 plus VAT||£70.00||£310|
|£1000.01 - £1500||£200 plus VAT||£80.00||£320|
|£1500.01 - £3000||£200 plus VAT||£115.00||£355|
|£3000.01 - £5000||£350 plus VAT||£205.00||£625|
|£5000.01- £10,000||£400 plus VAT||£455.00||£935|
If you wish to proceed with a claim, please note the following:
- The VAT element of our fee cannot be reclaimed from your debtor;
- Court Fees are set by the H M Courts and Tribunals Service and are subject to change;
- There may be disbursements payable. These are expenses payable to third parties, for example instructing a Tracing Agent to identify and locate your Debtor. Please note that any such disbursements have not been included on the above table as they cannot be known at the present time. If such disbursements are required, then we would advise you of the same;
- Court Fees are due and payable on the issue of the Court Claim and not at the close of the matter.
- The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
Our fee includes:
- Taking your instructions and reviewing documentation;
- Undertaking appropriate searches;
- Sending a letter before action;
- Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing the Claim Form;
- Where no Acknowledgement of Service or Defence is received in response to the above Claim, then applying to the Court to enter Judgement in default;
- When Judgement in default is received, writing to the other side to request payment;
- If payment is not received within 14 days, providing you with advice on next steps and likely costs.
Please note that the above fees exclude the following:
- Negotiating any settlement with your Debtor in respect of the payment of the monies owed;
- Dealing with any contested debt;
- Dealing with any enforcement action that is required;
- Dealing with any Insolvency or Bankruptcy issues;
- Multi party actions;
- Dealing with any jurisdictional issues.
It is very difficult to provide a timescale and matters usually take 2-5 weeks from receipt of instructions from you to the recovery of a sum of money. This is on the basis that no Claim needs to be issued and 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.