Debt Recovery Pricing

 

To enable business owners to plan ahead and keep an eye on costs our fee structure is completely transparent, we offer a variety of fee structures to suit your business needs and you can discuss this with us at the outset.*

Option 1 – Fixed Costs and Hourly Rates

A Letter Before Action costs £50 + VAT and is available for all debts from £100 and more.

Our fees include taking your instructions for one outstanding invoice and reviewing documentation, undertaking appropriate searches, sending the Letter Before Action, receiving payment and transferring the money to you.

It is difficult to estimate the length of time it will take to recover your debt. This depends on whether the debtor pays upon receipt of a Letter Before Action or whether it is necessary to issue Court proceedings against the debtor.  

If the debt is disputed we charge at an hourly rate:

Legal Representative

Hourly Rate 

Partner / Grade A Solicitor

£220 + VAT

Grade B Solicitor / Legal Executive

£200 + VAT

Grade C Solicitor / Legal Executive

£150 + VAT

Trainee Solicitor / Paralegal

£110 + VAT

If Court proceedings are issued and the case becomes contested our charges will be calculated on an hourly rate basis as specified above. A costs estimate will be given at that time. As you will appreciate, most cases are concluded/compromised before Trial. For claims of £10,000 or more, we would expect you to recover a substantial proportion of your costs (60% to 75%) from the debtor if your claim is successful and you obtain an order for costs.

Please note that you will be responsible to pay for any Court fees, Barrister’s fees, Land Register search etc. These are referred to as disbursements. A full breakdown will be provided to you by your legal representative.

Option 2 –Success Based Fee

This option includes a Letter Before Action up to obtaining a Judgment in favour of the creditor. Our costs are set out below, plus any costs we recover from the debtor:

DEBT

Fixed Fee Equivalent to % of the debt

£10,000 to £25,000

8% to 10% (subject to agreement)

£25,000 and more

Subject to agreement

This deferred payment option allows a creditor to pursue the debtor when they have large debts and limited funds to pursue the debtor. Instead of a creditor paying legal fees at an hourly rate (per month) it can invest the money into vital parts of the creditor’s business.

Under this option, if we do not recover any of the outstanding debt then you do not pay us anything, except disbursements.

NB: Disbursements are payments we pay out on your behalf such as Court fees, company search fees, process server’s fees.  We will notify you of disbursements before they are incurred.

If you end the Success Based Fee agreement before the case is won or lost, you are liable to pay our costs at the rate of £100.00 per hour with letters and telephone calls charged at £10.00 each unless they last for ten minutes or longer in which case they will be charged at the appropriate proportion of the hourly rate.  All of these figures attract VAT at the standard rate of 20%.

Option 3 – Insolvency Proceedings

If you do not wish to issue proceedings in the County Court you may wish to consider Insolvency proceedings. Insolvency proceedings are only appropriate if the debt is indisputable. Our legal fees and other costs are set out below:

 

Statutory Demand 

Winding Up Petition (Company)

Bankruptcy Petition (Individual)

Legal costs

£300 + VAT

£950 + VAT

£800 + VAT

Court Fee

Nil

£280

£280

Official receiver deposit

Nil

£1600

£990

Process Server’s fees

£100 + VAT

£100.00 + VAT

£100 + VAT

London Gazette Fee

Nil

£90.75 + VAT

Nil

Barrister’s Fee (if a hearing is listed)

 

£150.00 + VAT

TBC

TOTAL

£480

(including VAT)

£3,428.90

(including VAT)

£2,350.00

(including VAT)

If the company or individual is not wound up/declared bankrupt then the Official Receiver’s deposit is refundable (except a £50.00 admin charge by the Official Receiver).

Our aim is to always keep clients up to date and informed and we will tell you if any unforeseen extra work becomes necessary. We will also inform you in writing of the estimated costs of that extra work before you incur extra fees and we will always attempt to agree an amended charge with you so there are no surprises in your legal bills. If this is not acceptable we will just charge you on an hourly basis for the work done to date.

* Please advise at the outset how you wish us to calculate our charges, in the absence of which our charges will be calculated on an hourly basis.