Debt Recovery Pricing (up to £100,000)
We act for:
- Owner managed businesses
- Trustees in bankruptcy
Our no-nonsense approach means that your unpaid invoices are processed and actioned without delay or fuss.
The first step we will take, within 48 hours of receiving your instruction, will be to send your debtor a ‘Letter Before Action’ demanding payment of the debt. Within the Letter Before Action we include a late payment compensation which covers our fixed fee. If the debt is settled at this stage you will receive the original debt and we will receive the late payment fee.
Debts owed by companies
If dealing with a company the late payment compensation is as follows (including VAT at 20%):
For debts up to £999.99 = £40
£1,000 to £9,999.99 = £70
£10,000 + = £100
Debts owed by individuals (including sole traders and partnerships)
If dealing with an individual debtor (including sole traders and partnerships) we are unable to claim the late payment compensation and therefore charge a fixed rate of £50 plus VAT (at 20%, total payable £60) for issuing a Letter Before Action. This fee is unrecoverable and we will invoice you for this amount.
N.B Occasionally the debtor will settle the original debt but will not settle the late payment compensation. At this stage we will endeavour to chase this but if the compensation does remain unpaid, we will raise an invoice to you for the late payment compensation.
If the debt is settled at this stage and the debtor is a company you will receive the original debt and owe us nothing.
If the debtor is an individual, you will receive the original debt and we will invoice you £60 (incl VAT)
Court claims if the debtor fails to pay after receiving the letter before action
If the debtor fails to settle the debt after receiving the letter before action, you then have the option to commence Court Proceedings.
We will produce a claim form for you to sign and court action will follow.
Before issuing the claim form we will invoice you for the court fee and fixed cost shown below. On payment of the debt this will be reimbursed to you.
County Court Fees and Fixed Costs (Including VAT at 20%)
|Debt £||Court fees £||Fixed costs £|
|£0 to £300||35||60|
|£300.01 to £500.00||50||60|
|£500.01 to £1,000.00||70||84|
|£1,000.01 to £1,500.00||80||96|
|£1,500.01 to £3,000.00||115||96|
|£3,000.01 to £5,000.00||205||96|
|£5,000.01 to £10,000.00||455||120|
|£10,000.01 to £200,000.00||5% of the value of the claim||120|
If the debt is settled at this stage you will receive the original debt plus the court fee and fixed cost. We will only charge you the fixed fee of £60 including VAT for issuing the Letter Before Action if the debt is with an individual. If it is a company there will be no fee.
If the Debtor fails to respond to the claim form, on your instruction we will request that a County Court Judgement be entered.
We will invoice you the Entering Judgement fee shown below. This fee will be reimbursed to you on payment of the debt. Fees shown include VAT at 20%.
|Entering Judgement||Court fees £||Fixed costs £|
|1. In default of an acknowledgment of service|
|£25 to £5,000.00||0||26.40|
|2. In default of a defence|
|£25 to £5,000.00||0||30|
|3. On Admission|
|£25 to £5,000.00||0||48|
Following receipt of the Judgement we will advise you on the various methods and enforcement options available to you to secure payment of the debt. It will depend on the particular circumstances of your case as to which option is most suited but could be by way of seizing the debtor’s goods, obtaining a charge against their property, or bankruptcy.
If the debt is settled at this stage you will receive the original debt plus the court fee and fixed cost and the cost of entering judgement. We will only charge you the fixed fee of £60 including VAT for issuing the Letter Before Action if the debt is with an individual. If it is a company there will be no fee.
If it is decided to enforce a Judgement, using the County Court Bailiffs or the High Court Enforcement Officers, we will invoice you the following fees, which again will be reimbursed on payment of the debt:
|Enforcement||Debt £||Court fees £||Fixed costs £||Our charges £|
|Warrant of Execution – County Court Bailiff||£0–£599||100||2.70||60|
|Warrant of Execution – High Court Enforcement Officer||£600+||66||51.75||90|
N.B. If unsuccessful, the High Court Enforcement Officer will also charge £75.00 +. VAT abortive fee (£90)
If the debt is settled at this stage you will receive the original debt plus the court fee and fixed cost and the cost of entering judgment as well as the enforcement cost.We will only charge you the fixed fee of £60 including VAT for issuing the Letter Before Action if the debt is with an individual. If it is a company there will be no fee.
Our fee includes:
- Taking your instructions and reviewing documentation
- Undertaking appropriate searches
- Sending a letter before action
- Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
- Where no Acknowledgement of Service or Defence is received, applying to the court to enter Judgement in default
- Taking out enforcement action.
Matters usually take 2-5 weeks 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 the Letter Before Action. If Judgement or enforcement action is needed, the matter will take longer to resolve.
If the debtor decides to defend the proceedings, the matter will fall outside the fixed cost regime above. We can advise you on the appropriate options available and, if necessary, re-allocate your case within the Dispute Resolution department. We will discuss any further work required and provide you with revised advice about costs if necessary. We can also advise you on possible funding options to help you fight the case, please see the website for further information or contact us to discuss these options.
If you have international debts we can advise you on how best and where to pursue these debts.