Our fees: Debt recovery

Our fees: Debt recovery

We have set out below details of our costs in relation to the recovery of a debt in relation to an unpaid invoice which is not disputed. If the other party disputes your claim at any point, we would no longer classify your matter as ‘debt recovery’, but as a ‘contractual dispute’. We would give you the best possible information about our costs in relation to such a matter, but the information set out in this section relates just to debt recovery and not contractual disputes.

We will discuss with you possible methods of funding your claim, to include paying by hourly rate or fixed fee, depending upon the circumstances of your case and the prospects of recovery against the other party.

These terms apply to business to business debt claims. In the event of a claim brought by a business against an individual consumer then a protocol will apply and the timescales will be extended before proceedings can commence.

 

Details of hourly rates

 

Litigation fees

All matters will be supervised by a partner or associate.

 

Stage 1: Pre-action

 

  • Our fees include:  taking instructions and reviewing documentation; undertaking relevant searches such as with companies house or HM Land Registry, sending a letter before action, and advising upon expiry of the deadline contained in the letter before action to obtain instructions.  

Claims below £10,000 1 to 2 hours of lawyer's time, unless documentation is complex, based on the lawyer’s rates set out above. 

Claims between £10,000 and £25,000 2-4 hours of lawyer's time, unless documentation is complex, based on the lawyer’s rates set out above.

Claims above £25,000 5-7 hours of fee lawyer's time, unless documentation is complex, based on the lawyer’s rates set out above. 

Matters usually take 2-4 weeks from receipt of instructions from the client to open a file and draft a letter before action. This is on the understanding that no additional information is required from the client.  

 

Stage 2: Issuing a claim

 

  • Our fees include: taking instructions in relation as to how to proceed; drafting claim, diarising relevant dates, updating the client as to any response, whereupon we may revert to you with a revised costs estimate depending upon the nature of the response received.  

Claims below £10,000 2-3 hours of lawyer's time, unless particulars of claim are complex, based on the lawyer’s rates set out above. 

Claims between £10,000 and £25,000 3-4 hours of lawyer's time, unless particulars of claim are complex, based on the lawyer’s rates set out above.

Claims above £25,000 5-6 hours of lawyer's time, unless particulars of claim are complex, based on the lawyer’s rates set out above. 

Claims will be allocated to the appropriate level of lawyer depending on the complexity of the issues.

Matters usually take between 4-5 weeks from sending the claim for issue, to receiving a notice of issue and allowing sufficient time for the defendant to acknowledge the claim, make payment or propose payment plan, or to confirm their intention to defend. Also dependent on the court and whether or not further information would be required from the client.

 

Stage 3: Applying for default judgment

 

  • Our fees include: taking instructions and drafting a request for judgment in default. 

Claims below £10,000 1-2 hours of lawyer's time based on the lawyer’s rates set out above. 

Claims between £10,000 and £25,000 1-2 hours of lawyer's time based on the lawyer’s rates set out above. 

Claims above £25,000 1-2 hours of lawyer's time based on the lawyer’s rates set out above. 

It would usually take around 2-3 weeks from the request to obtain judgment depending on the court.

 

Stage 4: Enforcement

 

  • Our fees include advising the client in relation to enforcement options, taking instructions, instructing the relevant party or drafting the relevant application, updating the client as to progress/outcome.

Fee estimate for claims of any value may be anywhere between 5 and 30 hours. This could increase should the client choose multiple methods of enforcement.  

Timeframes will depend on multiple factors, to include; delays by the court and/or high court enforcement officers, the enforcement option chosen by the client, but a usual timeframe would be to expect results in between 1 and 3 months.

 

Please note

 

All fees will attract VAT at the prevailing rate. In addition to our own fees, disbursements may be payable. Disbursements are costs related to your matter that are payable to third parties. We handle the payment of the disbursements on your behalf to ensure a smoother process. Typical disbursements for an uncontested debt recovery could include a court fee; tracing agent fee in order to ascertain the whereabouts of a debtor or confirm their identity; land registry fees in order to establish whether they own property, and fees incurred in relation to enforcement, amongst others.

 

Examples

The following are drawn from recent cases:


Litigation claims track examples


*The costs set out above are exclusive of VAT and disbursements.


Court fees

 

Please view this link to the court fees payable upon starting a claim, which are contained on page 5.

 

Costs

 

We would advise you in respect of likely costs and the costs you are able to recover at the beginning of your matter. For uncontested claims below £10,000, only fixed costs are recoverable. If your claim is worth more, your costs may be assessed. You can find more information here.

 

Can we help you?

 

If you would like to find out more or would like to instruct us, please click here to request an estimate.