Debt Recovery Fees

We can help you recover your debt and are able to operate on a fixed-fee basis for undisputed debt matters, meaning that you know in advance, exactly what you will pay to recover a debt.

Where VAT is referred to anywhere below, it is currently charged at 20%.

Fixed-Fee Structure

Value of Debt	Fixed fee	Court fee	Total
Up to £5,000	£1,750 + VAT	Up to £205	Up to £2,305
£5,000 – £10,000	£2,250 + VAT	£455	£3,155
£10,000 – £25,000	£2,750 + VAT	5% of the claim’s value	£3,300 + 5% of the claim’s value
£25,001 – £100,000	£3,500 + VAT + 5% of the value of the claim in excess of £25,000	5% of the claim’s value	For example: A claim with a value of £50,000 would cost £4,200 + £1,250 (5% of £25,000) + £2,500 court fee (5% of £50,000) = £7,950
£100,000 +	Please contact us for further information	5% of the claim’s value up to £200,000. The court fee for claims valued in excess of £200,000 is £10,000.	Please contact us for further information.

The above fees apply where the proposed claim is in relation to an unpaid invoice which is not disputed, and enforcement action is not required. If the claim is disputed at any time, then we will provide you with revised information on costs which will be based on the following hourly rates:

• Jamie Jones, Partner – £395 + VAT
• Paige Symns, Solicitor – £330 + VAT
• Cara Tarr, Paralegal – £260 + VAT

On occasion, the fees will need to be revised if the case is more complex and/or circumstances change during the course of the claim.

An example of the work included in the fees set out above: –

• Taking initial instructions and considering relevant documents.
• Undertaking any appropriate searches.
• Advising and agreeing way forward.
• Pre-action correspondence (sending a Letter Before Action.)
• Reviewing any Letter of Response and advising.
• Conducting any negotiations, if appropriate and preparing a Settlement Agreement, if necessary.  
• If the debt is not paid, drafting and issuing a Claim Form (and drafting Particulars of Claim, if necessary.)
• If no Acknowledgment of Service or Defence is received, applying for Judgement in Default
• Upon receipt of Judgment in Default, requesting payment from the Debtor.
• If no payment is received thereafter, advising you of next appropriate steps and associated costs of enforcement. 

Any work required outside of the above steps will be charged at the solicitor’s hourly rate, plus VAT.

Any work required outside of the above steps will be charged at the solicitor’s hourly rate, plus VAT.

Court Fees

When a claim is issued in order to recover a debt, court fees are payable. Please see detailed information attached. 

There is no VAT payable on court fees.

Enforcement

It is sometimes necessary to enforce a Judgment against your debtor. If this does become necessary, we will take further instructions and agree any additional charges with you in advance, which we will seek to add to the debt where possible. There are a number of different ways to enforce a Judgment and successful enforcement is dependent upon the financial circumstances of the debtor and therefore further instructions in respect of costs will be on a case-by-case basis.

Other disbursements

You are responsible for any other disbursements that need to be incurred, including any fees to Counsel or County Court bailiffs and tracing agents or investigation reports.

Time Scales

Undisputed debt collection can normally be concluded within 12-24 weeks. However, this depends on whether it is necessary to issue a claim, the response of the other side, including whether they pay promptly, and whether any enforcement action is needed. 

Key Stages of a Debt Recovery Matter

With every debt recovery matter, there are key milestones, which will, generally, vary on a case-by-case basis. Our fees (above) will include the following, as appropriate:

Description	Likely Timescale
Taking your instructions and reviewing documentation	Between 3 and 7 days
Undertaking appropriate searches and research	Between 3 and 7 days
Issuing a letter before action	Between 5 and 10 days
Receiving payment and, subsequently, sending this on to you	Between 14 and 28 days
Drafting and issuing a claim form to the relevant court if the debt is not paid	Between 5 and 10 days
Applying to the court to enter a Judgement in Default if the debtor fails to respond to court proceedings	Between 3 and 7 days
Contacting the Debtor to request payment where a Judgement in Default has been issued by the court	Between 3 and 7 days

Disbursements

Disbursements are costs related to your matter that are payable to third parties, such as court fees or search fees. We handle the payment of the disbursements on your behalf to ensure a smoother process but may require a payment on account of those costs in advance. Please see potential additional costs below for further information. 

If a hearing is required, we would seek to instruct an appropriate barrister to represent you at that hearing.  In that event counsel’s fees are incurred, they are estimated between £600 + VAT to £1,500 + VAT (depending on experience of the advocate) for attending a hearing (including preparation).

Potential Additional Costs

Description	Third Party Fees	Our Fees	Likely Timescale
Tracing Report for missing Debtor	Between £50.00 + VAT to £300.00 + VAT	£150 + VAT	Between 5 and 28 days
Personal Service on Debtor (inside jurisdiction)	Between £200 + VAT to £500 + VAT	£150 + VAT	Between 1 and 10 days
Documents to be sworn or affirmed	£15.00 for the Affidavit + £2.00 for each exhibit	£50 + VAT	Between 1 and 10 days

We reserve the right to revise the fees above upon receipt and consideration of the papers.

Learn more about our commercial dispute resolution solicitors.