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Debt Recovery - Fee information

The following information details the fixed fees applicable for business to business debt that is undisputed.

Court Claims

It is hard to provide an accurate estimate of costs without knowing the factual basis of the debt and the grounds upon which it is claimed. This estimate of costs apply where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not needed.

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 Our fee
Letter before action (simple debt claim) Fixed fee of £220 plus VAT
up to £5000 25% of the claim value, fixed fee of £1,250 plus VAT or hourly rate of £220 plus VAT
£5,000.01 to £10,000 25% of the claim, fixed fee of £2,000 plus VAT or hourly rate of £220 plus VAT
£10,000.01 to £100,000 25% of the claim value or hourly rate of £220 plus VAT
£100,000.01 and over Hourly rate of £220 plus VAT

Disbursements such as court fees are not included in the above prices. Details of court fees can be found here.

Anyone wishing to proceed with a claim should note that:

  • The VAT element of our fee cannot be reclaimed from your debtor.
  • 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 claim
  • Where no Acknowledgement of Service or Defence is received, applying to the court to enter Judgement in default
  • When Judgement in default in 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

Matters usually take 4-6 weeks from receipt of instructions from you to receive of payment from the other side, depending on whether or not it is necessary to issue a claim. This 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 and additional costs may be involved.

Recoverability of costs

The general rule in relation to costs is “Costs in the Case”. That is, the losing party pays the winning party’s costs in bringing the action.

However, if the debt claimed is under £10,000.00, the matter will most likely be allocated to the small-claims track. Under the small claims track, the Court will generally allow the successful party to recover limited costs such as the court fee and witness expenses. Any other legal costs incurred will not be recoverable from the other side.

Fast Track is reserved for claims between £10,000.00 - £25,000.00. The hearing can only last for 1 day, and usually, it takes up to a year to reach it.

Multi Track is for claims that surpass £25,000.00. Usually, more than 1 day is allowed for a hearing, but depending on the complexity of the whole case, it can take anywhere between 1 and 2 years to reach a hearing.

For both the fast and multi-track, costs are assessed by the court and are usually awarded to the winning party and are not restricted as they are in the small-claims track. As a general rule of thumb, you should recover 65–70 per cent of your legal costs from the other side, if you are successful.

How can I increase the likelihood and amount of costs awarded to me?

As with all litigation, there are tactical and practical steps you can take which may improve your position. With costs, these generally take the form of without prejudice settlement offers, specifically offers made under Part 36 of the Civil Procedure Rules, and partaking in other Alternative Dispute Resolution options.

One of our litigation solicitors will be well placed to advise you in regards to the best timing and course of action to take to protect your position as to costs and maximise your costs recovery, as well as maintaining a tactical edge and control over the litigation.

We know our fees are competitive in relation to the service we provide. However, if you have received a lower quotation from a local reputable firm then please do not hesitate to get in contact with us and we will endeavour to match it.

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