Debt Recovery

Quality does not necessarily come at the cheapest cost. We do not, as some firms do, price our costs as a percentage of the value of the debt to be recovered.

We have set out this guide of our pricing for debt recovery services up to £100,000. By “debt recovery” in this context we mean the recovery of invoice debts owed to our clients where those debts arise from contractual relationships for the supply or goods and / or services, or where our clients have a statutory entitlement to the sums owed where the sum owed is up to £100,000 and that debt is undisputed. The best way to get an accurate indication of price is to speak to us on 01643 707777 to give us a full appreciation of your situation and requirements. If the debt is disputed from the outset or following proceedings being issued our fees will be significantly higher  and may well exceed the value of the debt.

Either of Julian or Sheree-Ann will have overall responsibility for your work, regardless of who works on your matter. They may be assisted by more junior fee earners including paralegals, trainee solicitors, solicitors, associate solicitors and senior associate solicitors. Debt recovery work can vary greatly in complexity. Your instruction will be dealt with by people whose expertise is appropriate to the task in hand. Our team has more than 50 years collective experience of debt recovery work.

Details of the members of our litigation team who may work on your matter or be responsible for it are set out in the table below:

All of our solicitors have a broad range of litigation experience and can assist with debt recovery as well as other litigation work. All work is supervised closely by Julian Maitland-Walker and Sheree-Ann Virgin.

The basis of our fees

Our work in this area is undertaken on an hourly rate basis – we will invoice the time on the clock monthly or at the conclusion of a matter. On the basis of certain assumptions and our experience of similar transactions we will outline estimates of what our fees may be for each stage. The names and hourly rates of those who undertake this work will be set out in the engagement documents that we will provide to you which shall include a fee estimate for the scope of the work that we are asked to perform. Our hourly rates are as follows:

Average fees

Our average fees for work within each state of the debt recovery process is as follows:

County Court proceedings

Stage 1 – Pre-Action

• Range of costs: £500 to £1,000 plus VAT depending on the complexity and value of the matter including taking your instructions, undertaking appropriate searches, sending a letter before action to the debtor requesting payment before proceedings are issued and reporting to you on any response received;
• Assumptions: The assumptions upon which this estimate is given are: (a) that the debt is based on a single unpaid invoice which is not disputed and no negotiation is needed, that we have all of the documents and that you will cooperate in providing further information; (b) that your debtor is correctly identified and his whereabouts are known; (c) that the debt is not subject to set off or counterclaims;
• Timescales: The usual timescales for this phase are between 1 – 4 weeks depending on at which stage payment is made.

Stage 2 – Proceedings

• Range of costs: £750 to £2,000 plus VAT depending on the complexity and value of the matter including drafting and issuing proceedings, where no acknowledgment of service is received applying to the court for judgment in default, obtaining judgment and providing you with advice on the next steps including likely costs if payment is not received;
• Disbursements: For debts over £10,000 up to £100,000 the court fee is 5% of the value of the claim. Occasionally we may instruct a barrister (otherwise known as Counsel) on your behalf to prepare pleadings or to attend a hearing. Counsel’s fees will vary according to the experience of the barrister needed and the complexity and value of the case;
• Assumptions: The assumptions upon which this estimate is given are: (a) that the debt is based on a single unpaid invoice which is not disputed and no negotiation is needed, that we have all of the documents and that you will cooperate in providing further information; (b) that your debtor is correctly identified and his whereabouts are known; (c) that the debt is not subject to set off or counterclaims;
• Timescales: The usual timescales for this phase are between 2 – 14 weeks depending on the stage at which payment is made, i.e. after issue of the claim or upon receipt of judgment in default.

If the other party disputes the debt or wishes to negotiate at any point we will discuss any further work required and provide you with revised advice about costs.

Anyone wishing to proceed with a claim should note that:

• We do not usually offer debt recovery services for debt values of less than £10,000.
• Fixed fees operate in this area and there are limits of how much of our costs you can recover from the debtor (see here). For a debt of £100,000 where the court serves the claim form and judgment is entered on admission the recoverable costs would be just £140 whereas our costs may be significantly more than this.
• VAT is chargeable on our fees as set out above and on Counsel’s fees. VAT is not chargeable on court fees. The VAT element of our fee might not be reclaimable from the debtor. Note that any reference to VAT is at the rate applicable at the time of your matter, currently 20%, unless otherwise stated.
• Interest and compensation or late payment fees 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. For more information on the methods of enforcement click here.

• Taking your initial instructions, reviewing the papers and advising you on the merits and prospects. This advice will be revisited throughout the matter and may change.
• Preparing and sending to the debtor a letter before action setting out details of the debt which you claim and the legal basis on which it is due and owing.
• Drafting the documents necessary to commence court proceedings, including the claim form and particulars of claim, and sending those documents to the Court, so that the Court may issue and serve your claim on the debtor.
• Preparing a request for judgment in default and sending this to the court. When judgment is received, sending a copy to the debtor with a request for payment. 
• If payment is not received as required, preparing advice to you on the next steps which may be taken to enforce judgment and the likely cost involved.

We will usually seek to recover your undisputed business to business debt of up to £100,000 debt by county court proceedings and insolvency proceedings are not, strictly speaking, a form of debt recovery. However occasionally you might seek to discuss with us the viability of insolvency proceedings. Below is an overview of the fees of such proceedings and we would be happy to discuss the process with you.