Pricing - Debt Recovery

Our Dispute Resolution department has vast experience in matters relating to debt recovery. Below are the costs that apply where your claim is in relation to an unpaid invoice which;

• Is owed by another business based in the UK
• Is not disputed, and
• Not more than £200k

PRICING

Court action

Our fee includes:

• Taking your instructions and reviewing documentation;
• Undertaking appropriate searches;
• Sending a Letter of Claim;
• Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing court proceedings;
• Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgment in default; and
• When Judgment in default is received, writing to the other side to request payment.

Our fee does not include:

• Enforcing the default Judgment
• Dealing with an application to set aside Judgment
• Dealing with debts if disputed

Please note that:

• If the value of the claim is less than £10,000.00 you will not be able to recover the full extent of our costs from the 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 Judgment debt.

In terms of timings, assuming that it is necessary to issue a claim and the debt is not disputed, as a rule of thumb it generally takes approximately 12 weeks from receipt of instructions to receipt of payment from the debtors. This is on the basis that the debtor pays promptly on receipt of Judgment in default.

If enforcement action is needed or the debt is disputed, the matter will take longer to resolve.

If the debtor 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 basis (e.g. for a specific step such as providing a letter of advice), or an hourly rate if more extensive work is needed. Such fees would be proportionate to:

• the amount of money involved;
• the importance of the claim; and
• the complexity of the issues.

If a disputed claim proceeds to trial, after the substantive matters have been decided, the court will make a costs order. The general rule is that the ‘losing’ party is ordered to pay the costs of the successful party. Such costs will be subject to detailed assessment in the event that they are not agreed.  Historically, when the courts have had occasion to assess our costs they have generally found them to be very reasonable – and often significantly less than those of our opponents.

HERE is a list of the key stages in litigation generally. This list is not confined to just debt claims. We hope you find this useful.