Debt Recovery

Debt Recovery

 

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. Our hourly rate at present is £200.00 plus VAT 

We are happy to accept instructions from both individuals and business (‘creditors’) seeking to recover unpaid debts from those owing the debt (‘debtors’). We are able to deal with a variety of claims from simple, undisputed debt to complex, contested debts.

 

Key stages in a claim process

 

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 30 days, providing you with advice on next steps and likely costs

Matters usually take 3 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. 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.

The level of legal fees with depend upon the nature and complexity of matters. A realistic costs estimate will be provided to you upon meeting a solicitor, once detailed instructions have been provided and upon reviewing all documentary evidence in support. We offer initial consultations for a fixed fee of £200.00 plus VAT. The precise number of hours it will take is contingent on the following factors:

If the debtor is able to pay the debt

If the debtor co-operates and responds to correspondence

If court action/ enforcement is necessary

Straightforward, undisputed matters will often take between 3-12 weeks from date of instruction to seek recovery from your opponent. Should it be necessary to issue court proceedings to seek recovery, we estimate it can take anywhere up to 12 months to obtain a judgment. If further enforcement action is required, then the matter will take longer to resolve. An estimate of fees can be outlined as follows:

 

Claims up to value of £10,000 – fees are likely to be in the region of £500 – £1500 plus VAT

 

Claims between £10,000 – £50,000 – fees are likely to be in the region of £1,500 – £5000 plus VAT

 

Claims above £50,000 – fees are likely to be in excess of £5,000 plus VAT

 

Disbursements

 

Disbursements are expenses that we will incur as a result of the claim, payable to a third party. For example, the use of a barrister, where appropriate and any travel expenses. We may sometimes ask for money on account to cover the disbursements likely to be incurred. Barrister’s fees range in accordance with the relevant experience and seniority. We will always notify you of the Barrister’s proposed fee in advance of agreeing a fee with their clerk.

 

Points to note

 

Please note that the following points should be considered before issuing a claim:

 

If a debtor pays the debt pre-issue, no legal fees can be recovered from the debtor

A claim under the value of £10,000 will be allocated to the Small Claims Track and the usual position is that no costs can be recovered from the other side even if successful

Where a claim is issued at court, a court issue fee is payable (this is dependant on the level of debt owed)

Interest and compensation may take the debt into a higher banding, attracting higher costs

Where enforcement action is required to collect the debt, additional fees will be required, some of which can be reclaimed from your opponent.