Bringing or defending claims for unpaid items
We summarise below a range of typical fees that might be involved in providing a debt recovery service. However, every care is different. At the outset, we will analyse your case and provide you with a typical estimate of fees.
Who will do the work?
All work will be carried out by qualified solicitors, legal executives, trainees and other support staff.
Our fees for pre-action work for debt that is being pursued
The fee ranges shown here are to give you an idea of our charges for providing legal services to you. You may also be required to pay for additional services and these are described later in this guide. Our range of fees are:
Pre-action protocol letter for debt claims
- Simple letter: £150 plus VAT to £250 plus VAT
- Medium complexity letter: £300 plus VAT to £400 plus VAT
- High complexity letter: £500 plus VAT to £750 plus VAT
14 days’ notice letter before action
- Simple letter: £150 plus VAT to £250 plus VAT
- Medium complexity letter: £300 plus VAT to £400 plus VAT
- High complexity case: £500 plus VAT to £750 plus VAT
Our fees for taking court action
These costs apply where your claim is in relation to an unpaid sum which is not disputed and enforcement action is not needed to include issuing a claim for the unpaid debt and seeking Judgement in default. This does not include any pre-action work such as a letter before claim. (Those fees are set out above). 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. We are able to use the Money Claims on Line system. Please speak to us if you would like us to use this.
- Simple letter: £250 plus VAT to £450 plus VAT
- Medium complexity letter: £500 plus VAT to £750 plus VAT
- High complexity letter: £800 plus VAT to £1,000 plus VAT
Court Fees
In addition to our fees you will be liable to pay court fees although these will usually be recoverable from the other party if your action is successful.
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.
- As referred to above, where the matter is complex, non-standard (e.g. involves many years’ worth of correspondence about disputed charges), part admitted or defended we would move onto charging on a time basis in accordance with agreed hourly rates.
- The costs quoted above do not include any disbursements such as travelling expenses, Court fees, Barristers’ fees, matter expert’s fees. Disbursements are costs relating to your matter that are payable to ourselves or to a third party. We will speak with you about the nature and cost of any representation that is required before appointing a barrister and/or expert.
The stages of a case
The fees set out above in relation to pursuing Court action covers all of our work in relation to the following key of a debt recovery:
- Taking your instructions and reviewing documentation
- 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
Payment of other parties’ costs
The basic rule with respect to costs in litigation is that, if your claim succeeds, you will be entitled to recover your costs from the other side. This does depend on the value of your claim and for lower value claims costs are fixed. If, however, your claim fails, it is likely you will have to pay the other side’s costs in addition to your own. it is unlikely that a party would recover all of the costs they have incurred in the litigation and the amount is usually subject to an assessment process unless the parties agree the sum. You would still be liable for all of your costs despite how much you are able to recover if you were successful.
How long will my matter take?
Matters usually take 8-16 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.
Enforcement/other action
We can also help you enforce a debt if a Judgement Order remains unpaid. There are various enforcement actions that can be pursued, and we will discuss the most appropriate method with you. Our fees (excluding any disbursements) for the most common enforcement methods are as below (subject to the applications not being disputed):
- Charging order application (to cover getting an interim charging order): £550 plus VAT
- Statutory demand (which leads to debtor being made bankrupt): £550 plus VAT
- Application for debtor to attend Court for questioning: £550 plus VAT
- Attachment of earnings application (need money Judgement first) £550 plus VAT