Debt Recovery Fees
Our Fees
These costs apply where your claim is in relation to an unpaid invoice which is not disputed, and enforcement action is not needed. If the other party 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 (e.g., if a one-off letter is required) or an hourly rate if more extensive work is needed. VAT will be payable on our fees and some disbursements, currently 20%, and we will clearly confirm which disbursements carry VAT in our formal quotation or as we advise you to incur them.
| Debt Value | Our Fees | VAT | Total |
| Up to 5,000 | £650.00 | £130.00 | £780.00 |
| £5,001 to £10,000 | £850.00 | £170.00 | £1,020.00 |
| £10,001 to £200,000 | £1,050.00 | £210.00 | £1,260.00 |
If, at any stage, our fees change, we will notify you and discuss the reason for any changes. This would typically occur if you changed your instructions, or your case involves an unforeseen complexity.
Our fee assumes that:
- This is a standard transaction, and no unforeseen matters arise.
- The transaction is concluded in a timely manner and no unforeseen complications arise.
- All parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation.
Anyone wishing to proceed with a claim should note that:
- The VAT element of our fee cannot be reclaimed from your 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 debt.
What is included?
As part of our fee, we will:
- Take your instructions and review the documentation.
- Undertake appropriate searches.
- Send a letter before action.
- Receive payment and send it to you, or if the debt is not paid, draft and issue a claim.
- Where no Acknowledgment of Service or Defence is received, apply to the court to enter Judgement in default.
- When Judgement in default is received, write to the other side to request payment.
- If payment is not received within 30 days, provide you with advice on the next steps and likely costs.
The value and complexity of the matter, alongside the stage at which the matter is resolved, must be taken into account to confirm the fees in accordance with this scale.
If your matter is simple or low value, we will discuss other fee options with you that may be available to ensure our fees are proportionate to the value of the debt.
If your matter becomes complex (see below), our fees may increase further, and we will notify you in advance of any increased costs.
How long will it take?
Matters usually take 2 to 8 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgement in default. If enforcement action is needed, the matter will take longer to resolve.
Disbursements and Other Costs
Disbursements may be incurred in the handling of the matter for you. In Debt Claims, fees tend to relate to Counsels’ fees and Court Fees.
Counsel fees – If Counsel is required to be instructed, a quotation for their services will be obtained from them and discussed with you before they are instructed to ensure you are fully aware of the fees that will be charged. However, we have given examples of costs below:
The fees of a barrister vary depending on the experience of the advocate and their expertise. In our experience, the initial fee for a barrister and the first day of the hearing (known as the brief fee) will be in the region of £1,000 – £3,000 plus VAT (£1200 – £3600 Inc. VAT). Each subsequent day would be an additional £500 – £1,500 plus VAT (£600 – £1800 Inc. VAT).
If you want a very experienced barrister, then the cost is likely to be more. You may also incur additional charges, such as travel costs, for us to attend meetings and hearings.
Courts Fees – The following link sets out the current court fees https://www.gov.uk/make-court-claim-for-money/court-fees
These are only necessary where we are required to issue a claim form via the court.
Additional costs
If there are likely to be additional costs, we will inform you as soon as possible. You may incur additional costs if:
- We need enforcement proceedings.
- We need to instruct a Bailiff.
Factors That Could Make A Case More Complex
The following factors may make your case more complex and impact your legal fees and disbursements: –
- The matter is defended.
- Judgement is obtained and needs to be enforced, for example:
- Instruction of a Bailiff
- Attachment to earnings
- Making or defending a costs application.
Should any of these factors occur, we will notify you and discuss with you any increase in our legal fees or disbursements.
Who will handle my debt recovery case?
Anyone in our Litigation department could handle your debt recovery. To view the qualifications and experience of the team, please click here.
Akhil Choudhury will be the Director with overall supervision of your matter.