Debt Recovery – Range of Fixed Fees
Our Dispute Resolution team have extensive experience in advising upon all aspects of debt recovery. When advising in relation to any form of dispute, where appropriate, we will seek to find an early and cost-efficient resolution. If it is not possible to achieve early settlement, our lawyers have significant experience bringing and defending proceedings in the County and High Court.
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Each case is different. Please email us or call 01202 525 333 and we will give you an estimate or fixed fee based on the circumstances of your individual case.
Our Charges, Key Stages and Services Provided
These costs below 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. Where appropriate, we seek to agree a fixed fee at the outset of the matter. Below we have set out a guide to likely costs based upon the value of the debt. In the event that a matter became more complicated than initially anticipated we would charge additional fees on a time spent basis of £175 plus VAT* per hour.
*Please note we will charge VAT on top of our costs for the work we carry out for you. VAT is currently charged at 20%
| Debt value | Court fee | Our fee (incl. VAT) | Total |
| Up to £5,000 | £35 (minimum)
£205 (maximum) |
£350 (excluding VAT*)
The total fee above is made up as follows:- £50 plus VAT* to draft a Letter Before Action £150 plus VAT* to draft the Claim Form & Particulars of Claim and issue at Court £50* to request Judgment be entered by the Court £50* to write to the other side to request payment of the Judgment debt £50* to advise the client on next steps regarding enforcement |
£555 plus VAT* |
| £5,001 – £10,000 | £455 (max) | £700 (excluding VAT*)
The total fee above is made up as follows:- £150 (excluding VAT*) to draft a Letter Before Action £250 (excluding VAT*)to draft the Claim Form & Particulars of Claim and issue at Court £100 (excluding VAT*) to request Judgment be entered by the Court £100 (excluding VAT*) to write to the other side to request payment of the Judgment debt £100 (excluding VAT*) to advise the client on next steps regarding enforcement |
£1,155 plus VAT* |
| £10,001 – £50,000 | 5% value of the claim
(£2,500 max) |
£1,050 (excluding VAT*)
The total fee above is made up as follows:- £500 (excluding VAT*)to draft a Letter Before Action £600 (excluding VAT*) to draft the Claim Form & Particulars of Claim and issue at Court £100 (excluding VAT*)to request Judgment be entered by the Court £150 (excluding VAT*) to write to the other side to request payment of the Judgment debt £150 (excluding VAT*) to advise the client on next steps regarding enforcement |
£4,000 plus VAT (excluding VAT*) |
*Please note we will charge VAT on top of our costs for the work we carry out for you. VAT is currently charged at 20%.
Our charges 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 X days, providing you with advice on next steps and likely costs.
Factors that could make a claim more complicated
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.
- If the matter becomes contested at any point will increase our charges, which we will discuss with you.
How long will my matter take?
Matters usually take 8 – 12 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.
If you would like to discuss a debt recovery matter please contact the team, you can email us or call 01202 525 333.
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