What does debt recovery cost?
These costs apply, where your claim is in relation to an unpaid invoice which is not disputed, and enforcement action is not needed. These costs do not apply, where there are legal issues relating to liability, that require the input of Counsel. 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.
|Debt value||Court fee||Our fee (incl. VAT)|
|Up to £10,000||
The court fee will depend on the amount claimed, see link below for further details.
|£10,001 – £100,000||5% of claim||£2,100.00|
Anyone wishing to proceed with a claim should note that:
- Recovery of the VAT element of our fee depends on whether you are registered for VAT.
- 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 the claim
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
- When Judgement in default is received, write to the other side to request payment
- If payment is not received within 14 days, providing you with advice on next steps and likely costs
- Where work is undertaken on a time spent basis, our charging rates are as follows :-
– Tim Bennett (Partner and Head of Department) £250.00 + VAT per hour.
How long will my matter take?
Matters can take up to 10 – 14 weeks from receipt of instructions from you, to receipt of payment from the other side. However, this is dependent upon on whether or not it is necessary to issue a claim. This timescale 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.