Debt Recovery Claims – Fees Guide
These costs apply where your claim is in relation to an unpaid invoice which is not disputed by the Debtor and enforcement action is not needed. If the other partys diputes 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 or on an hourly rate if more extensive work is needed.
|Value of Debt||Court Issue Fee*||Our Fees (+VAT)|
|Up to £5,000||Up to £205||£575|
|£5,001 – £10,000||Up to £455||£875|
|£10,001+||5% value of the claim||15% value of the claim|
*Court fees can be found here
Anyone wishing to proceed with a claim should note that:
- Interest and compensation make take the debt in to a higher banding, with a higher costs.
- The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
- It may not be possible to recover all or any of your legal fees (including VAT) and associated costs from the Debtor
Our fee includes:
- Taking your instructions and reviewing documentation
- Sending a letter before action as prescribed by the appropriate Protocol
- Receiving payment and sending on to you, or if the debt is not paid, drafting and issuing a claim
- Where no Acknowledgement of Service or Defence is received, applying to the Court to enter Judgment in default
- When Judgement in default is recived, write to the bother side to request payment
- If payment is not received within 14 days, providing you with advice on next steps and likely costs
Matters could take as little as a few weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether it is necessary to issue a claim at Court or not. If the debt is contested an / or enforcement action is required, the matter will take longer to resolve.
When you instruct us, our client engagement letter will provide specific detail about who will have conduct of the matter. Hourly rates (if appropriate) will be detailed then.
Protracted and contested litigation including debt recovery claims can be extremely expensive. A claim of high value with complex issues of fact or law could result in fees in excess of £20,000.
NB. You should check all / any insurance policies you / your business may hold to see whethe they include Legal Expense Insurance cover BEFORE instructing solicitors as if you do have such cover, it may not be retrospective.