Debt Recovery Fees
Business to business debt that is undisputed
Our estimated costs in the table below will apply where your claim is in relation to an unpaid invoice which is not disputed .These figures are inevitably general, rough estimates and we will discuss the appropriate fees with you when taking your individual instructions. However, if the other party disputes your claim at any time, we will need to discuss any further work required with you and provide you with revised advice about costs. This could be on a fixed fee basis (e.g. if a one-off letter is required), or an hourly rate if more detailed work is necessary.
N.B. Total column in table shows “TBC” i.e. “to be confirmed”
|Debt value||Court fee||Other Disbursements||Our fee range (including VAT)||Total|
|Up to £5,000||£35-205||£210 (service fee)||£2,000 – £3,500||£TBC|
|£5,001 – £10,000||£455||£210 (service fee)||£3,000 – £5,000||£TBC|
|£10,001 – £50,000||5% of the claim value||£210 (service fee)||£4,000 – £8,000||£TBC|
|£50,001 – £100,000||5% of claim value (max fee £10,000)||£210 (service fee)||£5,000 – £10,000*||£TBC|
- Debts of this size are not necessarily more complex but may require more work and we will discuss an appropriate fee with you once we have your detailed instructions.
If you wish to proceed with a claim, you 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 employment of a bailiff, is needed to collect your debt.
Our fee includes:
- Taking your instructions and reviewing documentation;
- Undertaking appropriate searches;
- Sending a letter before action;
- Receiving payment and sending on to you, or if the debt is not paid, drafting and serving/issuing a statutory demand or a Claim Form;
- Where no Acknowledgement of Service or Defence is received, applying to the court to enter Judgment in default;
- When Judgment in default is obtained, writing to the other side to request payment;
- If payment is not received within the period specified, providing you with advice on next steps and likely costs.
This fee does NOT include the preparation or presentation (i.e. issue) of a winding up petition. That route may be available to you if a statutory demand is served and no payment is made, but we will advise you on that separately, and explain the additional costs involved.
It is always difficult to give accurate time estimates, and particularly so after the lockdowns, as there is a huge backlog of cases being dealt with by the courts and it is currently taking much longer than before even to get straightforward documents issued. Matters can take as little as 3 to 6 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 judgment in default is entered promptly and the other side pays promptly on its receipt. However, there are many factors at play and any time estimate must be treated with caution. If enforcement action is needed, the matter will take longer to resolve.
If you wish to know more about the processes that are available and/or the costs that might apply to your claim please telephone Sebastian Jakubowski (0208 221 8032) who will be happy to discuss this with you.
Please click on the named link below to find out more about the individual debt recovery team member, outlining their legal experience and expertise:
Sebastian Jakubowski – Associate Solicitor, Dispute Resolution