Debt Recovery
Introduction to Debt Recovery
Our debt recovery team are fast, efficient and will get the results that you require. We understand that unpaid debts hold up your life, affect your cash flow, creates uncertainty and potentially prevents payment of your creditors, and harms your reputation. We have a dedicated team that handles undisputed invoice debt cases. Our debt recovery team aim to send a same-day letter before action as soon as possible and aim to settle out of Court. Our debt recovery team is supported by litigation specialists, who handle disputed or complex claims professionally and efficiently and will also advise more thoroughly on business debt recovery, commercial debts and prospects of recovery.
Our Fees:
(Please note that VAT is charged at 20% on all our fees and any disbursements which may attract VAT)Court Claims
These 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 | Court fee | Our fee (incl. VAT) | Total |
|---|---|---|---|
| Up to £5,000 | £35.00-£450.00 | £350.00 - £1,800.00 | TBA |
| £5,001 - £10,000 | £455.00 | £350.00 - £3,000.00 | TBA |
| £10,001- £100,000 | 5% value of the claim | £350.00 - £10,000.00 | TBA |
Please note that the above scale of costs is only an estimate based on dealing with a straightforward recovery matter without it being contested. Should the matter become contested then the above fee scale would not apply and will be chargeable on our hourly rate of £150 plus VAT. We will inform you of any additional costs before you incur any.
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 Acknowledgment 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 4-10 weeks 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. 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.