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Debt Recovery

For pursuing a debt recovery action legal costs will be involved. The fees set out below relate to undefended debt recovery proceedings only and do not include VAT and disbursements such as court fees and agency or barrister’s fees (if necessary).

In contentious matters or those requiring the resolution of complex issues, fees are charged on an hourly rate (see below).

For ease of reference, our fee structure is set out under the following headings:
  • Letter before action
  • Uncontested Proceedings
  • Enforcement

Letter Before Action

Our standard charge for sending an initial letter is £180 plus VAT, which also includes additional chase ups in the absence of response. If there are legal issues involved which require a more detailed analysis prior to drafting and sending an initial letter then the fee charged will be based on time spent on the matter and the complexities involved.

Our hourly rate in debt collection matters is £180 per hour plus VAT.

Letters before action sent to companies usually require the debtor to pay within 14 days, but letters to individuals provide for a 30-day period in accordance with guidelines laid down by the court and the time limit for payment in international letters before action may vary.

Uncontested Proceedings

The legal fees charged are in respect of uncontested debt recovery proceedings only and are based on the size of debt and the court in which proceedings are issued. The fees charged do not include disbursements such as Court fee.

Our legal fees structure is set out in the charts below:

Amount of Debt Our fee

Up to £1,000

£1,001 to £3,000

£3,001 to £5,000

£5,001 to £10,000

£10,001 to £200,000

£90 plus VAT

£150 plus VAT

£160 plus VAT

£190 plus VAT

£250 plus VAT

Court fee

You must pay a court fee when you make a claim. If you know the claim amount, the court fee is based on the amount you’re claiming, plus interest.

Claim amount Paper form fee Online claim fee
Up to £300 £35 £25
£300.01 to £500 £50 £35
£500.01 to £1,000 £70 £60
£1,000.01 to £1,500 £80 £70
£1,500.01 to £3,000 £115 £105
£3,000.01 to £5,000 £205 £185
£5,000.01 to £10,000 £455 £410
£10,000.01 to £100,000 5% of the claim 4.5% of the claim
£100,000.01 to £200,000 5% of the claim You cannot make a claim online
More than £200,000 £10,000 You cannot make a claim online

Once the court has served the claim, a debtor has 14 days in which to file a defence or enter an acknowledgement. After the 14-day period has expired, a request can be made to the court for judgment to be entered providing the debtor has not filed an acknowledgement or a defence.

Enforcement

There are a number of ways in which to enforce a judgment obtained in debt collection proceedings. In terms of the legal fees involved, the following is a breakdown of the fees based on the remedy used. The fees charged do not include disbursements such as Court fee, third party costs (process server, deposit, search fee) etc

Request Judgment: £50 plus VAT

Writ of control (High Court Enforcement Officer to seize goods in satisfaction) - £75 plus VAT

Warrant of execution - £75 plus VAT

Expected time: A writ of control or warrant of execution may be applied for once judgment has been obtained but whether or not any recovery will be made depends on the debtor’s ability to pay and whether there are any assets which may be seized and whether a repayment agreement is entered into. A typical enforcement may take about 8-12 weeks from instruction. If we are required to enter into correspondence about the enforcement, then the matter will no longer be treated as a fixed fee enforcement and additional charges will apply. These charges will be based on an hourly rate set out above.

Issue of statutory demand for companies and individuals - £150 plus VAT

Expected time: A statutory demand should only be made where the debt is not disputed for example where there is a judgment or an admission that the debt is due. A statutory demand can be prepared on receipt of instructions and is then usually sent to a process server for personal service. Personal service generally takes about 2-3 weeks via a process server.

Bankruptcy proceedings - £750 plus VAT

This is applicable to cases where the matter is determined at the first hearing, there are no issues with regards to service and is only applicable in cases whereby the debt is not disputed or if a court judgment has been obtained which has not been set aside or appealed.

Expected time: A bankruptcy order can usually be obtained within about 8-12 weeks of the petition being issued by the court.

Winding up - £950 plus VAT

This is applicable to cases where the matter is determined at the first hearing and is only applicable in cases whereby the debt is not disputed or if a Court judgment has been obtained which has not been set aside or appealed.

Expected time: A winding up order can usually be obtained within about 8-12 weeks of the petition being issued by the court.

Attachment of earnings - £150 plus VAT

This is applicable to cases where the attachment of earnings is obtained without a hearing or further applications or revisions to deal with debtors who have not been found or their employment has changed.

Expected time: An attachment of earnings order can sometimes be obtained within about 6-8 weeks of the application for an attachment of earnings order being issued by the court.

Charging order - £325 plus VAT (excluding hearing)

Expected time: An interim charging order can sometimes be obtained within about 2-3 weeks of application being made to court. The timescale for the final charging order will depend upon whether the debtor files an objection and if the Court lists the case for a hearing. Without any objections or a hearing it would be a further 4-6 weeks.

Third party debt order - £250 plus VAT

Expected time: A third party debt order can sometimes be obtained within about 8-12 weeks of the application being issued by the court.

Order that debtor attends court for questioning/oral examination - £250 plus VAT

Expected time: The debtor will usually be required to attend court for questioning within about 8-12 weeks of the application being made.

How Can We Help You?

If you feel there is anything we may be able to assist with, please do not hesitate to get in touch either by telephone, or by completing the information on contact us page.

CONTACT US

Call Our Legal Consultant : 03333 443351