B2B debt recovery up to the value of £100,000
Price Transparency Information for B2B debt recovery up to a value of £100,000
We agree bespoke debt recovery pricing with our clients based on business need, type of debt and volume of debt. We may offer bespoke fixed fees, contingent fees, monthly retainers, reduced hourly rates and/or a combination of these.
For one off instructions on individual debts, work will generally be charged on an hourly rate basis.
Our hourly rates are as follows:
Partner/Senior Solicitor with 15+ PQE £250 – £300 plus VAT
Associate Solicitor £190 – £225 plus VAT
Solicitor or Legal Executive £150 – £180 plus VAT
Trainee Solicitor or Paralegal £111 – £135 plus VAT
Debt recovery matters usually involve sending letters, emails and making calls to a debtor with the threat of court action if payment is not made. Where court action is necessary, this involves issuing a claim at court.
Anyone wishing to proceed with a claim should note that:
- Where a debt is paid before proceedings are issued, usually no costs can be reclaimed from the debtor
- Where a claim is issued at court, court issue fees will be payable. Details of the fees can be found here
- When a claim is issued in court and not defended, only court issue fees and court prescribed fixed costs can be reclaimed from the debtor. Details of the court prescribed fixed costs can be found here
- Interest and compensation may take the debt into a higher banding, with a higher cost.
- Where enforcement action needs to be taken, when a court judgment is not paid, costs will be quoted separately for any enforcement action
- Where a debt claim is defended, further expenditure may be required on court fees and other experts’ fees, such as a barrister or professional expert, to deal with compliance with court directions, such as disclosure, witness evidence and trial. The extent of this additional expenditure will depend on a number of factors including the value and complexity of the debt, they can range from anything between £500.00 to £20,000 plus VAT. Court fees do not attract VAT but barristers and expert’s fees can do
- VAT element of our fee cannot be reclaimed from the debtor
- VAT will be charged at the standard rate, details of which can be found here
Where a debt is not contested, generally we will carry out the following steps:
- Taking instructions and reviewing documentation
- Undertaking appropriate searches, which might include credit searches of the debtor, asset searches and so on
- Sending a letter before action
- Collecting payment and sending it onto you
- Drafting and issuing a claim
- Applying to the court for default judgment where a claim is not responded to
- Where a default judgment is obtained, writing to the debtor to request payment.
- If payment is not made advising you of the next steps
Where a debt is disputed at any point, we will discuss with you any further work required and provide information about costs, timescales and what the next steps should be on a case by case basis.
Where a debt remains unpaid after a county court judgment has been obtained, enforcement action may be necessary, such as instructing a bailiff, high court enforcement officer, obtaining a charging order and so on.
We aim to deal with all debt recovery instructions promptly and a client should expect Pre-Action steps (the steps taken before a claim is issued in court) to be concluded within two – twelve weeks from the initial instruction being provided to us. If, after the pre-action stage, the debt has not been recovered you may need to take court action. If court action is needed matters will take longer to be concluded. We will notify you with estimated timescales on a case-by-case basis.
If a debtor pays promptly upon receipt of a letter of claim, issuing a claim or following a judgment in default, then on average this type of work can take anything between three to fifteen hours to complete, which means that on an hourly rate basis our charges could be between £333 to £1,665 plus VAT if the debt is dealt with by a trainee solicitor or a paralegal who charges £111 plus VAT per hour. If a more senior member of staff is involved or deals with a debt claim either in full or in part then costs will be more by reference to the hourly rates set out earlier in this information.
The exact number of hours it will take to deal with the recovery of a debt from start to finish depends on factors such as:
- Whether the debtor wants to pay
- Whether the debtor can pay
- Whether court proceedings and enforcement are necessary
- The complexity of the issues
Ultimately a disputed debt claim of a higher value (in excess of £25,000) and with more complex issues could incur costs in excess of £30,000 plus VAT should the claim proceed to a fully contested trial.
Charges will be less if a debtor is able and willing to pay a debt or if payment or a settlement is reached before a fully contested trial.
For details of members of the team who may work on your matter, please view Our People page here. They are supervised by Lorna Trueman who is Head of the Dispute Resolution Team.