Debt Recovery

We understand that one of the most important factors to the success of any business is ensuring that you get paid for the work you have done.

Enforcements of debts can be a tricky and intricate area. We know that it is crucial to ensure that debts are recovered while maintaining on-going commercial relationships where possible. Assistance we can provide includes:

  • Advice on the most commercial approach to debt recovery
  • Drafting of letters to debtors
  • Court proceedings against debtors
  • Statutory demands
  • Winding up/insolvency proceedings against debtors
  • Enforcements of County Judgments/Orders

Our team works with businesses and debts of all sizes and has the experience to ensure that your debts are recovered in a cost effective and timely manner.

In some instances we are able to offer a fixed fee service; please contact us to discuss your situation.

 

Average costs (claims up to £100,000)

We understand the commercial imperative in dealing with unpaid debt for you. The work we will carry out may involve some or all of the following:

o    Taking instructions and reviewing documents

o    Liaising with your debtor and others in an effort to resolve matters

o    Issuing proceedings at court

o    Applying for judgment in default

o    Dealing with the procedural steps up to a final hearing

o    Representation at any hearing (this is for contested matters but excluding Small Track claims)

o    Advising on any enforcement action

How long it takes will depend on a number of factors, but in a very simple case it could be concluded within 3 to 4 weeks if court proceedings are not required. Some debts may not be recoverable in whole or part. In an uncontested case it should be concluded in between 3 and 6 months. If the matter is contested, then a reasonable estimate is between 9 and 15 months. Any subsequent enforcement action required will lengthen the process.

We typically charge between £1,000 and £1,400 (+ VAT at 20%) for this work if it remains uncontested; in addition, if proceedings are actually issued there will be court fees of between £35 and £10,000. They vary with the sums claimed and more details can be found in the disbursements section below.

We typically charge the following if the matter is contested (lower figure where a defence is filed but the Defendant then takes no further part in the proceedings; upper figure to the conclusion of a contested trial).

 

Small Claims Track (claims up to £10,000)

Legal costs (apart from a small fixed sum) are not recoverable on claims pursued through the Small Claims Track. For a claim in the Small Claims Track our fees (which you have to pay) may be more than the amount claimed. 

Our typical fees would be between £1,800 - £5,500 (+ VAT at 20%). This does not include representation at the final court hearing; if you wanted us to represent you, then in addition our average fees for that representation would be between £600 and £1,400 (+ VAT at 20%). The court fees would typically be between £35 and £455 plus a hearing fee of between £27 - £346.

 

Fast Track (claims for between £10,000 and £25,000)

We would typically charge between £2,000 and £12,000 (+ VAT at 20%) if your claim is contested. In addition, there would be court and barrister’s fees of between £2,000 and £6,110 plus VAT where relevant. The court fees would typically be between £455 - £1,250, plus a hearing fee of £545.

 

Intermediate & Multi Track (claims exceeding £25,000)

We would typically charge between £3,000 and £25,000 (+ VAT at 20%) if the matter is contested. In addition, there would be court and barrister’s fees of between £2,000 to £18,110 plus VAT where relevant. The court fees would typically be between £1,250 - £10,000, plus a hearing fee of £1,175.

 

You will also incur further costs if the sum is not paid after judgment is obtained and enforcement action is then required. You will also be responsible for these enforcement costs which are shown in the disbursements section.

All these estimates reflect average prices based on recent instructions and a small proportion of cases will fall outside these ranges; the actual cost to you will depend on a number of factors, which we will discuss with you if you decide to instruct us.

The charges are based on our average hourly charging rate of between £200 to £280 (+ VAT at 20%) per hour.

Always remember that you are liable to pay all the legal costs and expenses to us first and you will then be credited with whatever can be recovered from the debtor. With claims for under £10,000 (in the Small Claims Track) very little of the legal costs and expenses you incur is likely to be recoverable. 

 

Disbursements

Court Issue Fee 

DescriptionFee
Money claim up to but not exceeding £300£35.00
Exceeds £300 but does not exceed £500£50.00
Exceeds £500 but does not exceed £1,000£70.00
Exceeds £1,000 but does not exceed £1,500£80.00
Exceeds £1,500 but does not exceed £3,000£115.00
Exceeds £3,000 but does not exceed £5,000£205.00
Exceeds £5,000 but does not exceed £10,000£455.00
Exceeds £10,000 but does not exceed £200,0005% of the value of the claim
Exceeds £200,000£10,000

Hearing Fee

DescriptionFee
Small claims case (does not exceed £300)£27.00
Small claims case (exceeds £300 but not £500)£59.00
Small claims case (exceeds £500 but not £1,000)£85.00
Small claims case (exceeds £1,000 but not £1,500)£123.00
Small claims case (exceeds £1,500 but not £3,000)£181.00
Small claims case (exceeds £3,000)£346.00
Fast-track case£545.00
Multi-track case£1,175.00

Enforcement Fee

DescriptionFee
Issue of warrant of control against goods£83.00
Application to require judgment debtor to attend court£59.00
Application for a third-party debt order£119.00
Application for a charging order£119.00
Application for a judgement summons£119.00
Issue of a warrant of possession/warrant of delivery£130.00
Application for an attachment of earnings order£119.00

Download the disbursements guide as a PDF below:


 

Our people involved in doing the work include:

  • Gary Leverett - Senior Solicitor
  • Natalie Peacock - Chartered Legal Executive

Their details and experience can be found below.

To find out more, call us on: 01603 625231