Debt Recovery Claims (up to a value of (£100,000)
Where your claim is in relation to an unpaid invoice, we work on a combination of low fixed fees together with contingency fees with you for reviewing any documents and correspondence supplied by you and writing an initial letter before action and claiming payment of the debt on your behalf.
Should it become necessary to issue proceedings for recovery of an undisputed debt court issue fees will become payable.
If you wish to proceed with a claim, you should note that:
the VAT element of our fee cannot be reclaimed from your debtor if your VAT registered; and
interest and compensation may take the debt into a higher banding, which means that a higher Court fee may be payable.
We will charge a fixed fee to draft simple short-form Court proceedings claiming payment of an undisputed invoice.
If the other party fails to acknowledge service of the proceedings or file a defence to the claim, we will charge a fixed fee to request a default judgment.
A default judgment will only include Court fees and fixed solicitor’s costs (as provided for by the Civil Procedure Rules). You may not be able to recover the fees which you pay us.
If the other party fails to pay the judgment debt, we will advise you of the various ways in which you may be able to enforce payment of the judgment debt. We will charge you a fixed fee for the agreed enforcement action.
If the other party defends your claim and the matter becomes contested, we will discuss any further work which may be required and provide you with a revised estimate as to the costs of such further work.
Our fees for defended matters are time-based and are calculated by reference to hourly charging rates (which will depend on the seniority of the fee earners working on your case). We will give you as detailed a costs estimate as we can, once we know what issues have been raised and have a better idea of how long it is likely to take to resolve the matter for you.
Undisputed claims are likely to take anything between 2 weeks and 3 months 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 judgment in default. If enforcement action is needed, the matter will take longer to resolve.
Disputed claims can take up to 12-18 months to resolve.
In certain circumstances, it may be appropriate to draft and serve a statutory demand claiming payment of an undisputed debt. Our fees for doing this (including the cost of arranging for personal service of the demand on the debtor) are again on a combination of a low fixed fee and contingency fee. The same applies to any insolvency action you require us to undertake.
Our present fixed fees and charging rates as well as the likely disbursements are set out below.