Commercial Debt Recovery over £10,000
Do you have a debtor who owes you over £10,000? Large overdue debts can have a significant and lasting input on your business.
What difference does it make if my debt is worth more than £10,000? If your debt is more than £10,000 you will able to recover the majority of your legal costs from the Defendant i.e. 2/3 of your costs.
Most claims made with us are settled without going to court. If your case does go to court your solicitor will guide you through the preparation process, and negotiate on your behalf throughout the hearing, so you don’t need to worry.
Once you issue Court proceedings your claim will be allocated a ‘Track’. The financial value of the claim is the main factor in deciding which Track a case is allocated to, but the Court will also consider factors such as the complexity of the issues, the value of any Counterclaim and the amount and nature of witness or expert evidence that may be required.
If the value of a claim is between £10,000 and £25,000 (including any added interest) then once Court proceedings are issued the claim is allocated to the Fast Track. This provides a simplified procedure to enable parties to resolve their disputes.
Debts over £25,000
If the value of a claim is more than £25,000 (including any added interest) then once Court proceedings are issued the claim is allocated to the Multi Track. Usually, more than 1 day is allowed for a hearing, but depending on the complexity of the whole case, it can take anywhere between 1 and 1 ½ years to reach a hearing. Multi-track claims give your solicitor and the parties involved more time to discuss and negotiate your case.
For cases with the value of the claim in excess of £10,000 you will need to pay a Court fee of 5% of the value of your claim. Also, you will need to pay a hearing fee a few months before the trial which is £545 for a Fast Track hearing and £1,090 for a Multi-Track hearing.
Our experienced debt recovery team will be able to assist you at every stage of the process. For more complex matters or claims over £10,000 in value our charges will be based on an hourly rate.