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 £825 and £1,100 plus VAT for this work if it remains uncontested; in addition, if proceedings are actually issued there will be court fees of between £35 and £5110. They vary with the sums claimed.
  • 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 £1,500 - £4,000 plus VAT. 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 £500 and £1100 plus VAT. The court fees would typically be between £60 and £1045.

 

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

We would typically charge between £2,000 and £10,000 plus VAT 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.

 

Multi Track (claims for between £25,000 and £100,000)

We would typically charge between £3,000 and £25,000 plus VAT 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. 

 

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.

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 £165 to £220 per hour plus VAT.

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.  

Our people involved in doing the work include:

Gary Leverett         Senior Solicitor

Natalie Peacock     Legal Executive

Their details and experience can be found below.

To find out more, call us on: 01603 625231