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 acknowledgement 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:
|Claim Value||Court Fee|
|Up to £300||£35|
|£301 – £500||£50|
|£501 – £1,000||£70|
|£1,001 – £1,500||£80|
|£1,501 – £3,000||£115|
|£3,001 – £5,000||£205|
|£5,001 – £10,000||£455|
|£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 acknowledgement 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 (hourly rate £285 + VAT (a total of £342))
Tristan is the head of our Dispute Resolution team and over 10 years’ 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.
Nicholas Phillips – Senior Associate (hourly rate £250 + VAT (a total of £300))
Nicholas is a Senior Associate in our Dispute Resolution team who assists both individuals and corporate clients. Nicholas undertakes a wide variety of work and has experience in debt recovery and insolvency matters.
Nicholas qualified in 2011 and joined the firm in 2019.
Gary Adamson – Solicitor (hourly rate £220 + VAT (a total of £264))
Gary has over 10 years’ experience in dispute resolution and deals with both civil and commercial litigation. Gary assists both individuals and corporate clients recovering debts.
Victoria Graham – Solicitor (hourly rate £200 + VAT (a total of £240))
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 several debt recovery matters for individuals and corporate clients.
Victoria qualified as a Solicitor in 2017 and joined the firm in 2019.