What will I pay for debt recovery?

We look at debt recovery cases as a three stage exercise:  initial correspondence seeking recovery of the debt; court proceedings; and enforcement of any judgment obtained.  We set out below details of each stage and the costs which will be incurred.

Stage One:  Pre-Litigation

No Recovery No Fee Service (Debts over £500.00)

The No Recovery No Fee debt collection service can be used where an individual or company’s total invoice debts are more than £500. As part of this service our team will:

  • Write to the debtor with a formal letter demanding payment within a set period;
  • Provide a follow up call to the debtor after the 7 day period;
  • Send a final warning of legal action letter;
  • Advise you on the costs of making a court claim against the Debtor.
  • Negotiate terms of repayment or settlement with the debtor on your behalf*;

 

Debt Amount % Commission
£500- £1,000 9%
Up to £5,000 5%
£5,000- £10,000 3%
£10,000+ N/A

If we successfully recover money from a debtor you will be charged commission on the amount we recover. Our fees are calculated as a percentage of the debt. If the debt is less than £500.00 please request a quote from a member of our team.

* In the event of us being instructed to accept instalments on your behalf a monitoring charge of £5 per action will apply        

 

Debts over £10,000.00

Debts over £10,000.00 are automatically referred to our Commercial Litigation Team who will provide a quote for acting for you. The quote will be based on the complexity of issues involved and estimated time required to deal with the matter. Hourly rates for debts over £10,000.00 vary between £160.00 – £250.00 (+VAT) per hour.

Disputed Debts

For debts under £10,000.00 that are disputed by a debtor we offer a small claims handling service. A debt recovery caseworker will assist you in corresponding with the debtor and assessing the merits of your claim. Fees are charged for time spent working on the matter at a rate of £115.00 (+VAT) per hour.

Stage Two – Court Proceedings

Issuing Court proceedings

We will draft the claim form and file this with the court on your behalf. Fees are calculated by reference to the Debt Amount. The No Recovery, No Fee service cannot apply to Stage Two. A schedule of the fees for drafting your claim and sending this to the court is provided below.

Debt Amount* Our Fee to Draft Claim Court Fee to Issue Claim Recoverable Costs
Up to £300 £75 £35 £85
£300- £500 £80 £50 £100
£501-£1,000 £130 £70 £140
£1,001 – £1,500 £140 £80 £160
£1,501- £3,000 £150 £115 £195
£3,000 – £5,000 £160 £205 £285
£5,001 – £10,000 £180 £455 £555
£10,000- £100,00 By quote 5% of claim Assessed by the Court

 

*Matters over £10,000.00 will be referred to our Commercial Litigation Team for a quote.

 

Debt Amount Our Fee Recoverable Costs
£25- £5,000 £62 £22- £55
Over £5000 £90 £30- £70

If the Defendant does not defend your claim within 28 days you can request a judgment (default judgment) confirming the debt is owed.

Defended Debts

Where debts under £10,000.00 are defended by a debtor you can talk to a caseworker in our small claims handling service. A debt recovery caseworker will assist you in preparing your matter for a hearing and assessing the merits of your claim. Fees are charged at a rate of £115.00 per hour for time spent working on the matter.

 

Stage Three: Enforcement

What is Enforcement?

Enforcement relates to the methods of obtaining payment from the debtor. In most circumstances you will first need to obtain a money judgment from the Court, before you can ‘enforce’ this.

The enforcement options available depend on the debtors economic circumstances.

We will discuss and agree with you the most suitable option for enforcement.

 

Action Our Fee Court Fee Other Fee Recoverable Costs if successful at Court
Instructing Bailiffs £50 £110 £112.25
Instructing High Court Enforcement Officer £100 £66 £90 £117.75
Attachment of Earnings Order* £200 £110 £110
Applying for Charging Order* £300 £110 £43 £263
Third Party Debt Order* £300 £110 £108 £208.50

 

*Where an application is defended by a Debtor the matter will be charged at an hourly rate. We will provide you with an estimate of the likely charges on a case by case basis.

 

Tracing Services                                                                                           £45.00 per trace

Where a Debtor’s current whereabouts are unknown we will instruct a tracing agent.

 

Insolvency Services

 

Action Our Fee Court Fee Other Fee
Statutory Demand £150 Process Server Fee
Preparing Bankruptcy Petition (Individuals)* £650 £1270 £3 + Process Server Fees
Preparing Insolvency Petition (Companies)* £750 £1880 £40 + Process Server Fees

 

* Where an application is defended by a Debtor, the matter will be charged at an hourly rate. For all Petitions an advocate will need to be instructed to present the Petition to the courts. We will provide you with an estimate of the likely charges on a case by case basis.