Debts owed by you or your business can prove extremely stressful and worrying, but ignoring these issues will not make them go away.
You may be owed money by an individual or business and this may cause you financial difficulties because of the impact on cash flow for either you as an individual or your business.
We understand the importance of effective debt management and the impact this can have.
Our experienced team help both individuals and business, whether its a debt claim against them, or in the recovery of debt from another party.
Please do not hesitate to contact a member of our team who will be happy to discuss the options available to you.
If you would prefer, you can contact us on 01270 625478.
It is a requirement in nearly all cases to send a Letter of Claim to your debtor so that they know about the debt and, hopefully, with a view to recovering the monies due to you without the need to issue court proceedings. We always recommend this as a first step, as if you fail to do so, you could incur unnecessary cost and the Courts take a very dim view on such action, meaning that you are likely to be penalised in future costs recovery (as may be available to you).
Our Standard Letter of Claim costs include an initial telephone discussion with you to understand the facts, an initial review of the outstanding invoices and any preliminary papers which may be relevant and our Standard Letter of Claim being sent to your debtor.
|Level of Debt||Anticipated Fees|
|Up to £1,000||£150 plus £30 VAT|
|£1,001 – £5,000||£350 plus £70 VAT|
|£5,001 – £10,000||£650 plus £130 VAT|
|£10,001 – £25,000||£1,500 plus £300 VAT (to include meeting and bespoke advice)|
|£25,001 +||£2,500 plus £500 VAT (to include meeting and bespoke advice)|
A more bespoke service for any level of debt, which will include a meeting with you, a full review of all papers, advice to you on your position in writing, discussion on potential tactics regarding initial steps and a bespoke initial letter to the debtor can be undertaken and the costs associated with this service can be discussed with you.
If no response is received and Court action is suggested, it is necessary to prepare your Claim Form and Particulars of Claim prior to issuing proceedings at Court. Our Standard Costs include the preparation of these documents utilising our standard precedents, filing at court and serving the claim upon the debtor. In addition to our fees, you will also need to pay the Court Fee.
More complex cases may incur additional fees, for example by use of a barrister to prepare your papers or investigatory enquiries being required of your debtor. Such cases will be discussed on a case by cases basis.
|Level of Debt||Court Fee||Anticipated Fees|
|Up to £1,000||Sliding scale between £35 –
|£500 plus £100 VAT|
|£1,001 – £3,000||Sliding scale between £80 –
|£650 plus £130 VAT|
|£3,001 – £5,000||£205||£1,000 plus £200 VAT|
|£5,001 – £10,000||£455||£1,500 plus £300 VAT|
|£10,001 – £25,000||5% of the level of debt||£2,495 plus £499 VAT (to include
bespoke Particulars of Claim)
|£25,001 +||5% of the level of debt up to
a maximum of £10,000
|£3,995 plus £799 VAT (to include
bespoke Particulars of Claim)
If no response is received to the Claim Form then we will request Default Judgment in all cases Free of Charge.
If the claim is defended, then we will discuss next steps with you, but in contested matters, your costs will increase. Depending upon the complexity of the matter and the issues involved, you could be looking at legal costs of between £5,000 – £35,000 + 20% VAT + Disbursements such as barristers fees.
We will guide you through each step of the process and offer bespoke advice to each client, including offering advice on appropriate settlement as the case may be. Each case will progress on an hourly rate basis and / or further fixed fees and each case will be discussed with the Client at that stage and bespoke advice offered regarding progression and costings of next steps.
Once Judgment is obtained, we will discuss any required next steps regarding appropriate enforcement with you on – this will be different in each case.
We will advise if we feel that the issue of proceedings is inappropriate, for example in the context of affording you the best chance of recovery. Other options are available, such as statutory demands, liquidation options or Alternative forms of Dispute Resolution. If we feel another option is more appropriate we will let you know.
Depending upon whether a response is received to our initial letter, or whether court action is needed, or whether enforcement action is required, the timescales of the matter being resolved are likely to vary greatly. We will aim to send your debtor a Letter of Claim within 5 working days of receiving your instructions and the required information and requested payment on account from you. We will also aim to send papers to court within 10 working days of receiving your instructions to proceed. Depending upon the complexity of a matter at Court, it could take a number of months to obtain Judgment. If the matter becomes fully contested to a final hearing and enforcement action is required, the matter could take much longer to resolve. At this time, we are finding that in simple debt recovery actions where no response is received, Judgment can be received within 4 weeks. More complex and fully contested matters can take up to 24 months to reach a conclusion.
The Team’s standard Hourly Rates range from £190 to £325 plus VAT depending upon their level of experience.