We offer many different services to our clients in relation to debt recovery work and we are happy to meet with you to consider your requirements and how we may assist you. We will also provide you with details of our fees at our meeting which will be confirmed to you in writing.
As part of our service, we will:
- Provide you with an experienced solicitor to work on your matter
- Take your instructions and review documentation
- Undertake appropriate searches
- Send a letter before action
- If payment is not received, draft and issues the claim at court
- Apply for a judgement in default if there is no acknowledgement of service or defence received
- Serve the judgment in default and request payment
- In the event of non-payment of the judgment, advise you how the judgment can be enforced
- If the matter is defended, continue to act for you in relation to the claim until the conclusion of a trial or mediation
- If at any time payment is received, send it onto you
We can only apply fixed fees where your claim is in relation to an unpaid invoice which is not disputed and there are no contractual complications.
Prior to the issue of claim
Taking instructions, reviewing documentation, undertaking appropriate searches and relevant enquiries, sending a letter before action, receiving payment and sending onto you.
Legal costs: Our costs will be £500 plus VAT, totalling £600.
Disbursements: are costs related to your matter that are payable to third parties. We handle the payment of the disbursements on your behalf. These can include but not limited to court fees (see below), HM Land Registry title documents (£3 each), Companies House reports (£1 each) etc.
These costs apply where your claim is in relation to an undisputed debt and enforcement action is not needed. If the other party disputed 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.
Our costs are below for drafting and issuing a claim, applying for default judgment where no Acknowledgment of Service or Defence is received, serving the same and requesting payment from the other side if payment is not received, providing you with advice on next steps and likely costs: –
Claims up to £5,000 £750 plus VAT, totalling £900
Claims between £5,001 to £10,000 £1,250 plus VAT, totalling £1,500
Claims between £10,001 to £50,000 £1,750 plus VAT, totalling £2,100
Claims between £50,001 to £100,000 £2,250 plus VAT, totalling £2,700
Claims over £100,001 may be fixed by agreement
Disbursements: see disbursement examples above.
Court fees to issue a claim (from July 2018):
Claim amount Paper form fee Online claim fee
Up to £300 £35 £25
£300.01 to £500 £50 £35
£500.01 to £1,000 £70 £60
£1,000.01 to £1,500 £80 £70
£1,500.01 to £3,000 £115 £105
£3,000.01 to £5,000 £205 £185
£5,000.01 to £10,000 £455 £410
£10,000.01 to £100,000 5% of the claim 4.5% of the claim
£100,000.01 to £200,000 5% of the claim Cannot be made online
More than £200,000 £10,000 Cannot be made online
Court issue fees and other court fees are also available from:
Anyone proceeding with a claim should note that for a business to business claim the VAT element of our fees cannot be recovered from the debtor. Interest may take the debt into a higher banding of both court fee and our costs.
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 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 the 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 claim
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
- When Judgement in default in received, write 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
Matters usually take 2-3 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.
How long will this take
We aim to have the claim prepared for issuing within 2 to 3 weeks of being instructed to issue proceedings. Following Notice of Issue, the debtor has 14 days to acknowledge service of the proceedings. If acknowledgment of service has been lodged with the court, the debtor has a further 14 days to lodge a defence. Where no Acknowledgment of Service or Defence is received, Judgment in default will be applied for within a few days. The court may take 2 – 4 weeks to return the Judgment in default which will then be served by us within a few days.
Potential Additional Costs
We will always confirm to you any additional costs for work not included in our fees whether fixed or estimated. The following are examples of work which will incur additional costs:
- additional correspondence or communication with you, the debtor or third party
- enforcement action
- statutory demands
- arranging mediation
- contested or defended actions
- instructing barristers, experts or third parties
- attendances at court or at mediation
All additional work will be charged at our hourly rate of £240 plus VAT unless a fixed fee is agreed with you for any further aspect of our work. We will discuss any additional work with you and provide you with a detailed estimate of our fees.