Debt Recovery Costs
Range of fees for non-disputed business-to-business debts of up to £100,000
The costs below apply where your claim is in relation to an unpaid invoice of up to £100,000 which is not disputed. A non-disputed debt means that no acknowledgment of service or defence has been filed and that enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide a new revised estimate with regards to costs.
The Court fee payable will depend on the value of the debt (including interest) that is being claimed. The current fees are as below:
|Up to £300
|£301 – £500
|£501 – £1,000
|£1,001 – £1,500
|£1,501 – £3,000
|£3,001 – £5,000
|£5,001 – £10,000
|£10,001 – £100,000
|5% of the value of the claim
Irrespective of the value of the debt, the works set out below will need to be undertaken.
- Taking your instructions and reviewing documentation;
- Sending a letter of claim;
- If payment is received following the letter of claim, receiving and sending the money to you. If the letter of claim does not prompt the debtor to pay the monies owing, drafting and issuing the Court proceedings;
- Where no acknowledgment of service or defence is received, applying to the Court to enter judgment in default;
- Where judgment in default is obtained, serving a copy on the debtor together with a request for payment;
- If payment is not received following service of any judgment in default, then advising you on the next steps and costs.
Our costs for dealing with a non-disputed debt claim up to the value of £100,000 and for carrying out the abovementioned works are likely to be in the region of £2,500 – £5,000 + VAT (a total of between £3,000 – £6,000). In addition, the applicable Court fee to commence the claim (as mentioned above) will be payable. Having to review a lengthy contract and lots of papers together with dealing with a substantive response from the debtor are likely to result in a fee which is towards the higher end of the above estimate.
Additional points to note:
Anyone wishing to proceed with a claim should note that:-
- Interest and compensation may take the debt into a higher bracket resulting in a higher Court fee;
- The costs quoted do not include any enforcement action which may be required to enforce the judgment obtained;
- The fees above do not include any hearing fee which would be payable in the event of a claim being contested.
You should note that it usually takes in the region of 12 weeks from receipt of your instructions for us to receive payment from the debtor. This is on the basis that the other side pays promptly on receipt of any judgment in default and that enforcement action is not needed. If the matter is contested and/or enforcement action is needed then matters will take longer to resolve.
The following fee-earners deal with debt recovery work:
Tristan Benson – Partner and Head of Dispute Resolution
Tristan is the head of our Dispute Resolution team and has over 10 years of experience in dispute resolution. Tristan specialises in a number of areas, including debt recovery and enforcement and has vast experience working with both individual and corporate clients.
Tristan qualified as a Solicitor in 2008, having completed his training contract at the Firm. He became a Partner in 2016 and Head of the Department in 2017.
Tristan charges £300 + VAT per hour (a total of £360 per hour).
Suzanne Bingham – Senior Associate Solicitor
Suzanne’s background is in general litigation, however, she has spent the last 3 years specialising in Insolvency and Corporate Recovery.
Suzanne qualified as a solicitor in 2017 having worked as a litigation paralegal since 2013. She joined the Firm in 2021.
Suzanne charges £275 + VAT per hour (a total of £330 per hour).
Victoria Graham – Senior Associate Solicitor
Victoria is a Solicitor in our Dispute Resolution team and has lots of experience in litigation work. Victoria has undertaken a number of cases, including debt recovery matters for individuals and corporate clients.
Victoria qualified as a Solicitor in 2017 and joined the firm in 2019.
Victoria charges £275 + VAT per hour (a total of £330 per hour).