Debt-Recovery

How We Charge - Debt Recovery

We are required by the SRA to provide information on our website regarding how our fees are calculated for certain types of matters. This information is below. Please note however that as a firm it is our policy to treat all clients and instructions as individuals and we would therefore welcome the opportunity to talk to you and provide an estimate that is tailored to your specific needs.

Court Claims

The value of the Court Fee will depend on the amount you are claiming. A full breakdown of court fees and charges is found here https://www.gov.uk/government/publications/fees-in-the-civil-and-family-courts-main-fees-ex50.

We would expect our costs and court fees to be in the region of:

Debt value

Court fee

Our fee (incl. VAT)

Total

Up to £5,000

Up to £205.00

£480.00

£685.00

£5,001 - £10,000

£455.00

£720.00 (XVAT)

£1,175.00

£10,001 - £50,000

5% value of the claim

£960.00

Depends on Court Fee

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

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 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 7 days, providing you with advice on next steps and likely costs

Matters usually take 1-3 months 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.

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