Wherever possible we offer a fixed fee service, so you know exactly what the legal action is going to cost you. For debts of no more than £10,000 the initial letter costs just £50 plus VAT which could be a small price to pay to have those unpaid invoices settled.
Fixed Fee Debt Recovery
The costs below apply to the recovery of an unpaid debt of not more than £10,000.00 from an individual or a business/organisation where the debt is not disputed and an invoice has been rendered. If the other party disputes the debt at any point, we will discuss any further work required and provide you with revised advice about costs if necessary. This 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.
The precise work and stages involved in debt recovery matters vary according to the circumstances. However, we have set out the key stages involved in a typical claim below, along with an outline of the fees involved:
Stage 1 – Fixed Fee Pre-Court Action
| Debt Value up to £10,000.00 | Our Fee | VAT | Total |
|---|---|---|---|
| Letter Before Action | £50.00 | £10.00 | £60.00 |
| Further Pre-Court Action (Up to 30 minutes) | £50.00 | £10.00 | £60.00 |
What is included (Pre-Court Action Stage):
Letter Before Action:
- Reviewing your instructions (on our proforma) and accompanying documentation;
- Undertaking any appropriate searches;
- Conducting interest calculation(s) (if appropriate) up to a maximum of three;
- Calculating compensation claimable (if appropriate);
- Preparing Letter Before Action in accordance with your instructions;
- Sending the Letter Before Action and the required documentation (where necessary) to allow you to pursue your debt at Court thereafter should you wish;
- Letting you know that your Letter Before Action has been sent.
Further Pre-Court Action (Up to 30 minutes):
- Any interest calculation(s) after the first three aforementioned above;
- Providing advice on the next steps based on the response to the Letter Before Action;
- Engaging with the debtor if, before the need to issue a Claim Form, they communicate with us (including if they make an offer/offers to pay), and liaising with you accordingly;
- Receiving payment from the debtor and sending this to you (if appropriate).
What is excluded (Pre-Court Action Stage):
- Any work undertaken where the basis and/or amount of the debt is disputed. Depending on the expertise required, this would be charged at an hourly rate of between £115.00-£285.00 plus VAT. We would agree with you a revised level of work required and the fees involved;
- Any work undertaken during the ‘Further Pre-Action’ stage which exceeds a total of 30 minutes. After the first 30 minutes, any further work would be charged on an hourly rate basis, at an hourly rate of between £115.00-£285.00 plus VAT, depending on the expertise required;
- Any debt incurred outside the legal jurisdiction of England and Wales.
Stage 2 – Fixed Fee Court Proceedings – Issuing a Claim
| Debt Value | Our Fee | VAT | Court Fee | Total | Recoverable Legal Fees |
|---|---|---|---|---|---|
| Up to £500.00 | £125.00 | £25.00 | £35.00 to £50.00 | £185.00 to £200.00 | £50.00 to £75.00 |
| £500.01 – £1,000.00 | £125.00 | £25.00 | £70.00 | £220.00 | £70.00 to £95.00 |
| £1,000.01 – £3,000.00 | £125.00 | £25.00 | £80.00 to £115.00 | £230.00 to £265.00 | £80.00 to £105.00 |
| £3,000.01 – £5,000.00 | £125.00 | £25.00 | £205.00 | £355.00 | £80.00 to £105.00 |
| £5,000.01 – £10,000.00 | £125.00 | £25.00 | £455.00 | £605.00 | £100.00 to £125.00 |
What is included (Issuing a Claim Stage):
- Taking your instructions and reviewing documentation;
- Undertaking any appropriate searches;
- Conducting updated interest calculation(s) (if appropriate);
- Preparing a Claim Form and sending this to the Court to be issued and served (i.e. sent to the debtor);
- Letting you know that your claim has been submitted at Court.
What is excluded (Issuing a Claim Stage):
- Any work undertaken where the basis and/or amount of the debt is disputed. Depending on the expertise required, this would be charged at an hourly rate of between £115.00-£285.00 plus VAT. We would agree with you a revised level of work required and the fees involved;
- Any debt incurred outside the legal jurisdiction of England and Wales;
- Any correspondence with the debtor directly. This would be charged at our usual hourly rates if required.
Stage 3 – Fixed Fee Court Proceedings – Obtaining Judgment in Default (CCJ)
| Debt Value | Our Fee | VAT | Court Fee | Total | Recoverable Legal Fees |
|---|---|---|---|---|---|
| £25.00 – £5,000.00 | £22.00 | £4.40 | N/A | £26.40 | £22.00 |
| £5,000.01 and above | £30.00 | £6.00 | N/A | £36.00 | £30.00 |
What is included (Entering Judgment Stage):
- Taking your instructions;
- Conducting updated interest calculation(s) (if appropriate) up to a maximum of three;
- Where no Acknowledgement of Service or Defence is received, applying to the Court to enter Judgment in Default;
- Keeping you updated.
What is excluded (Entering Judgment Stage):
- Any interest calculation(s) after the first three aforementioned above;
- Any work undertaken where an Acknowledge of Service or Defence (whether admitting the claim, in full or in part, or defending the claim). Depending on the expertise required, this would be charged at an hourly rate of between £115.00-£285.00 plus VAT. We would agree with you a revised level of work required and the fees involved;
- Any debt incurred outside the legal jurisdiction of England and Wales;
- Any correspondence with the debtor directly. This would be charged at our usual hourly rates if required.
Stage 4 – Fixed Fee Court Proceedings – Enforcement
| Enforcement Method and Debt Value | Our Fee | VAT | Court Fee | Total | Recoverable Legal Fees |
|---|---|---|---|---|---|
| Warrant of Control (County Court Bailiff under £600.00) | £50.00 | £10.00 | £91.00 | £151.00 | £2.25 |
| Writ of Control (High Court Enforcement over £600.00) | £50.00 | £10.00 | £78.00 | £138.00 | £51.75 |
What is included (Enforcement Stage):
- Taking your instructions and reviewing documentation;
- Undertaking any appropriate searches;
- When Judgment in Default has been entered by the Court, and if payment is not received within 14 days, instructing appropriate agents to obtain either a Warrant of Control (County Court) or Writ of Control (High Court);
- Keeping you updated up to the point of a Warrant of Control or Writ of Control being issued.
What is excluded (Enforcement Stage):
- Any work undertaken where the Judgment in Default is disputed. Depending on the expertise required, this would be charged at an hourly rate of between £115.00-£285.00 plus VAT. We would agree with you a revised level of work required and the fees involved;
- Any enforcement action other than the obtaining of either a Warrant of Control or Writ of Control. If additional enforcement action is required, we will provide you with advice on the next steps and the likely costs;
- Any debt incurred outside the legal jurisdiction of England and Wales;
- Any correspondence after the Warrant of Control or Writ of Control has been issued. This would be charged at our usual hourly rates if required.
Anyone wishing to proceed with a claim to recover a debt (of less than £10,000.00) should note that:
- We charge an uplift on all debts recovered of 10% of the base debt claimed;
- The VAT element of our fees cannot be reclaimed from your debtor;
- Interest may take the debt into a higher banding, with a higher cost;
- Unless specifically stated, disbursements (a payment made to a third-party) are excluded from the fixed fees and remain the responsibility of the client unless otherwise informed;
- Most claims with a debt value not exceeding £10,000.00 are normally allocated to the small claims track of the Court, with the parties paying the majority of their own legal costs. The Judge in a small claims case can make an order that the losing party pay some of the other party’s costs, however, these are normally limited to a fixed amount (referred to above as Recoverable Legal Fees);
- Debt recovery matters usually take approximately 4 to 6 months from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim at Court (Stage 2). This is on the basis that the other side pays promptly on receipt of Judgment in Default (Stage 3). If enforcement action is needed (Stage 4), the matter will take longer to resolve.
