DEBT RECOVERY FEES

Our Team

The work will be completed by one of our solicitors in our Litigation team to include either the Partner/Director Shabana Dad.

Our Litigation resolution lawyers have over 20 years of experience. 

Further individual details including experience and qualification can be found in the ‘Our Team’ section of our website.

Our services will include the following;

• Discussing the circumstances of your claim in detail and confirming the most appropriate action for you to take together with any other options available
• Giving advice regarding the Civil Procedure Rules
• Considering the evidence you have provided and giving initial advice on the matter
• If necessary obtaining further evidence i.e. In the way of witness evidence or by way of expert evidence
• Preparing your claim and submitting it on your behalf 
• Any attendance at court or arranging for appropriate representation for you by a barrister
• Giving advice on the outcome of the claim and any further steps you may need to take
• Advising on enforcement action you can take with regards to a judgment in your favour
We cannot guarantee how long any court process will take as this is dependent on various circumstances. However we will keep you updated throughout. Matters could take anywhere from 6 months to 1.5 years to conclude if not longer depending on the complexities of the case.
All fees quoted above are estimates and are subject to specific circumstances of each individual claim.

Hourly Rate

The following costs will apply where the other party disputes your claim and we are required to carry out further work. The hourly rates are based on the experience of the solicitor working on the matter.
Directors, Partners and Solicitors with over 8 years’ relevant experience (Grade A) £280-£317 per hour plus VAT*
Solicitors and Chartered Legal Executives with over 4 years’ relevant experience (Grade B) £270 per hour plus VAT*
Other Solicitors, Legal Executives and fee earners of equivalent experience (Grade C) £196 per hour plus VAT*
Trainee Solicitors, Paralegals and Clerks (Grade D) £125 per hour plus VAT*
*Our fee will be subject to VAT currently at the rate of 20% so for example if our fees are £1,000 the VAT payable will amount to £200 i.e. 20% of £1,000.

On average costs can be between £800 - £13,000 plus VAT at the current rate of 20% for claims that are up to £100,000. 

The exact fee will depend on the circumstances in your case, such as;

• The amount of evidence we need to consider
• Whether the debt is paid upon receipt of an initial letter from us
• Response received and whether the debt is defended or not
• Level of disclosure to be provided
• Amount of expert evidence if any is required
• Amount of days any hearing or trial is listed for and preparation involved
• Conduct of the other party

Please note these fees are exclusive of any disbursements such as barristers fees (if required), court fees, expert fees, mediators costs, search fees, asset fees and any travel costs associated with attending hearings. These costs will be discussed with you prior to being incurred as and when required.

Please note the anticipated number of hours, fees and timescales are an estimate based on the facts above. All services are likely to vary and of course, we can give you a more accurate estimate once we have more information about your specific case.

Fixed Costs 

Debt Recovery – Undisputed Debt

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.
Debt Value Court Fee Our Fee (excluding VAT*) Total (including VAT*)
Up to £5,000 £35-£205 £650 - £1,000* £815 - £1,405
£5,001 - £10,0000 £410-£455 £1,000 - £1,500* £1,610 - £2,255
£10,001 - £50,000 4.5%-5% of the value of the claim £1,500 - £3,000* £2,250.05 - £6,100
£50,000 and over 4.5%-5% of the value of the claim TBA on the claim and estimate costs on complexity TBA on the claim and estimate costs on complexity
*Our fee will be subject to VAT currently at the rate of 20% so for example if our fees are £1,000 the VAT payable will amount to £200 i.e. 20% of £1,000.

The costs quoted above do not include costs for taking enforcement action on any judgment debt or costs of any other applications that may be required throughout.

Costs are likely to be at the lower end of this if matters are not defended and settled amicably. Should matter become defended or there is a counterclaim involved, then costs are likely to be at the higher end.

If you are wishing to bring a claim please note that;

• The VAT element of our fees cannot be reclaimed from your debtor
• Interest and compensation may take the debt into a higher banding, with a higher cost
• The cost quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt
Our fee include;
• 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 Acknowledgment of Service or Defence is received, applying to the court to enter judgement in default
• Where judgement in default is received, write to the other side to request payment
• If payment is not received within 14 days providing you with advice on the next steps and likely costs

Timeframe

Matters usually take 2 - 13 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 Judgment in default. If enforcement action is needed, the matter will take longer to resolve.

Services not included in the price above;

• Cases where proceedings have been issued
o Any work arising from the debtor defending the claim (we can advise further on this if required
o Applications made by the debtor to set aside judgment or appeals
o Enforcement action in relation to the judgment 
o Negotiations for settlement
o Cases where the debtor is our of jurisdiction
o Applications to freeze assets to deliver up goods

• Cases where proceedings have not been issued;
o Breaches of settlement terms or failure to be paid by the debtor
o Any court proceedings
o Any claim where the debt is disputed
o Negotiations exceeding two hours of our time

Fees for the above services can be discussed as and when required and will be based on an hourly rate. 

Debt Recovery – Enforcement Action if Judgment Obtained
Enforcement Action Court Fee Our Fee (excluding VAT*)
Statutory demand Debt/judgment over £750 None £500 - £1,000*
Winding Up petition https://www.gov.uk/government/publications/fees-in-the-civil-and-family-courts-main-fees-ex50 £1,500.00 - £10,000*
Winding Up order https://www.gov.uk/government/publications/fees-in-the-civil-and-family-courts-main-fees-ex50 £2,000.00 - £15,000*
Third party debt order https://www.gov.uk/government/publications/fees-in-the-civil-and-family-courts-main-fees-ex50 £3000.00*
Execution Against Goods https://www.gov.uk/government/publications/fees-in-the-civil-and-family-courts-main-fees-ex50 £500 - £2,000*
Charging Order https://www.gov.uk/government/publications/fees-in-the-civil-and-family-courts-main-fees-ex50 £1,000 - £3,000*
Our fee will be subject to VAT currently at the rate of 20% so for example if our fees are £1,000 the VAT payable will amount to £200 i.e. 20% of £1,000.

On average, this type of work entails from 5 to 40 hours of work .

The exact number of hours it will take depends on the circumstances in your case. Factors that may affect the hours can be:

• The amount of supporting evidence that we need to consider
• Opponent’s conduct throughout
• Number of Parties
• Historical background
• Unforeseen applications
• Unforeseen complexities that may arise 
• The amount of supporting evidence that we need to consider
• Lack of co –operation from the opponent
• Investigations on assets and or asset trace
*please note that these costs ONLY relate to enforcement action on judgments.

What services are included in this?

• Initial attendance and consideration of the options and assessing most appropriate way forward based on client’s circumstances;
• Advising you on next steps on how to proceed 
• Reviewing documentation advising on the same
• Undertaking appropriate searches
• Sending a preliminary communication relating to enfacement. 

The costs quoted here do not include:

• Court Fees such as Issue Fees. Updated fees can be found on https://www.gov.uk/government/publications/fees-in-the-civil-and-family-courts-main-fees-ex50 
• Disbursements such as Barristers fees, experts fees, search fees etc
• Enforcement action fees such as High Court Enforcement Office, bailiffs fees, land registry fees, Process server fees, asset trace company fees etc
• The matter becoming complex requiring the fee quote unviable for the action to continue.   

We will let you know at the earliest opportunity and before any such fees are incurred by yourself, if any of these are applicable.

Debt Recovery - Court Disputed Claim
Debt Value Court Fee Our Fee (excluding VAT*)
Up to £5,000 £35-£205** £1,000 - £3,000*
£5,001 - £10,0000 £410-£455** £1,500 - £4,500*
£10,001 - £25,000 4.5%-5% of the value of the claim** £2,500 - £8,000*
£25,001 - £50,000 4.5%-5% of the value of the claim** £5,500 - £20,000*
£50,000 and over 4.5%-5% of the value of the claim** TBA on the claim and estimate costs on complexity
*Our fee will be subject to VAT currently at the rate of 20% so for example if our fees are £1,000 the VAT payable will amount to £200 i.e. 20% of £1,000.

The exact number of hours it will take depends on the circumstances in your case. Factors that may affect the hours can be:

• The amount of supporting evidence that we need to consider
• Number of Parties
• Historical background
• Jurisdictions of parties*
• Unforeseen applications*
• If there is a Counterclaim *
*costs may exceed the fee quote given the complexity case and will be advised on a case by case basis

What services are included in this?

• Initial attendance and consideration of the options and assessing most appropriate way forward based on client’s circumstances
• Reviewing documentation advising on the same
• Undertaking appropriate searches
• Sending a letter before action
• if the debt remains unpaid, drafting and issuing a claim
• Where Acknowledgment of Service or Defence is received, reviewing defence and advising you
• Instructing counsel, where appropriate
• Preparing or assisting with reply, if necessary
• Preparing witness statement and complying with court directions
• Preparing and attending trial
• Advising you throughout and liaising with counsel, where necessary

The costs quoted here do not include:

• Court Fees such as Issue Fees. This will be reflected on the value of the claim.** These can be found on https://www.gov.uk/government/publications/fees-in-the-civil-and-family-courts-main-fees-ex50
• Disbursements such as not limited to Barrister’s fees, expert’s fees, search fees, translation costs etc if they become necessary;
• Enforcement action to collect debt or enforce a judgment;  
• Counterclaims filed by the opponent
• Appeals
• Interest and compensation may take the debt into a higher banding, with a higher cost.
• Complex background or history to the claim, which may involve considerable number of hours to investigate

We will let you know at the earliest opportunity and before any such fees are incurred by yourself, if any of these are applicable.
Time scale (on average):

• Small Track Claim – 6-12 Months from initial instructions
• Fast Track Claim - 12-18 Months from initial instructions
• Multi Track Claim – 12-24 Months from initial instructions

Please note the anticipated number of hours, fees and timescales are an estimate based on the facts above. All services are likely to vary and of course, we can give you a more accurate estimate once we have more information about your specific case.

Updated 15 June 2021
Share by: