This guide will provide you with information about our charges for debt recovery work where the value of the debt is £100,000 or less.
Our specialist debt recovery team have all of the skills and experience to successfully help you with your debt recovery matter.
You can find details of the experience and qualifications of the debt recovery team here.
Undisputed Debt Recovery
If the claim is not disputed before or after court proceedings are issued, our legal fees are fixed based on the value of your debt, and/or the work required. These fees are outlined in the below tables.
Disbursements
Alongside our legal fees, you may be required to pay disbursements. Disbursements are costs related to your matter that are payable to third parties. We will handle the payment of disbursements on your behalf. Disbursements relating to undisputed debt recovery claims are mainly court fees, which are outlined below where applicable. Please note that we have only outlined VAT information where it is applicable.
Key Stages
Letter of Claim
This stage includes an initial review of documents and drafting the Letter of Claim.
| Value of Debt | Fee (Ex. VAT) | Total (Inc. 20% VAT) | Time Estimate to Complete |
|---|---|---|---|
| Under £10,000 | £250 | £300 | 2-3 weeks from instruction |
| £10,000 – £24,999 | £500 | £600 | 2-3 weeks from instruction |
| £25,000 – £49,999 | £750 | £900 | 2-4 weeks from instruction |
| £50,000 – £100,000 | £1,000 | £1,200 | 2-4 weeks from instruction |
Issuing Proceedings and Entering Judgment
This stage includes:
- drafting and submitting a claim form to the court setting out details of the debt owed, and interest claimed on the debt; and
- submitting a request for a default judgment if the defendant does not respond to the claim form within the court-imposed deadline.
| Value of Debt | Fee (Ex. VAT) | Total (Inc. 20% VAT) | Disbursements | Time Estimate to Complete |
|---|---|---|---|---|
| Under £10,000 | £350 | £420 | Court Issue Fee* | 2 weeks from instruction to issue |
| £10,000 – £24,999 | £500 | £600 | Court Issue Fee* | 2 weeks from instruction to issue |
| £25,000 – £49,999 | £750 | £900 | Court Issue Fee* | 2 weeks from instruction to issue |
| £50,000 – £100,000 | £1,000 | £1,200 | Court Issue Fee* | 2 weeks from instruction to issue |
*The court charge a fee for issuing court proceedings. The current court issue fees are set out below:
| Value of Debt | Court Fee |
|---|---|
| Up to £300 | £35 |
| £300 – £500 | £50 |
| £500 – £1000 | £70 |
| £1000 – £1500 | £80 |
| £1500 – £3000 | £115 |
| £3000 – £5000 | £205 |
| £5000 – £10,000 | £455 |
| £10,000 – £100,000 | 5% of the value of the claim |
Once we have completed this stage, the court will serve the claim form on the defendant, who then has an initial period of 14 days to pay in full or respond by sending the court either:
- an admission to the debt (which may include a request to pay the debt by instalments); or
- a defence disputing the debt; or
- an acknowledgment of service, which will extend the time for the defendant to file a defence to a total of 28 days from the date of service.
If the defendant does not pay the claim in full or file an admission, defence or acknowledgement of service, we will ask the court to enter a default judgment for the full debt claimed plus interest and court fees. Once a judgment has been entered by the court, we can proceed to enforcement (see below for the costs of enforcement).
Please note the fixed fees below do not include making and dealing with applications to set a default judgment aside.
Admission
The defendant will submit this court form if they are admitting to all or part of the claim. The defendant is required to provide details of their income, savings, expenses and debts, and will state when they can pay the debt in full or offer to pay the debt in monthly instalments.
We can advise you on the admission and next steps for the following fixed fees:
| Value of Debt | Fee (Ex. VAT) | Total (Inc. 20% VAT) | Time Estimate to Complete |
|---|---|---|---|
| Under £10,000 | £150 | £180 | Within 7 days of instruction |
| £10,000 – £24,999 | £200 | £240 | Within 7 days of instruction |
| £25,000 – £49,999 | £400 | £480 | Within 7 days of instruction |
| £50,000 – £100,000 | £800 | £960 | Within 7 days of instruction |
Enforcement Fees
If, at any time after court proceedings have been issued and a judgment is entered against the defendant, and the defendant does not pay the judgment debt within the deadline set by the court, it can be enforced using the following methods:
| Enforcement | Fee (Ex. VAT) | Total (Inc. 20% VAT) | Disbursements | Time Estimate to Complete |
|---|---|---|---|---|
| County Court Bailiff | £100 | £120 |
|
Approx. 6-12 months from instruction to bailiff |
| High Court Enforcement | £150 | £180 |
|
Approx. 6-12 months from instruction to High Court enforcement officer |
| Charging Order | £150 | £180 |
|
Approx. 12 weeks from the date of instruction |
| Application for Third Party Debt Order | £150 | £180 |
|
Approx. 3-6 months from the date of instruction |
| Attachment of Earnings order | £150 | £180 |
|
Approx. 3-6 months from the date of instruction |
| Application to call debtor in for questioning | £100 | £120 |
|
Approx. 3-6 months from the date of instruction |
Please note that the above fees are based on the assumption that enforcement action is not contested by the debtor. If the debtor contests any action taken and the court lists the matter for a hearing, then additional charges at our hourly rates may apply (see disputed debt recovery claims below).
The amount of debt owed may determine the type of enforcement officer you choose:
- For debt under £600 we would advise instructing a County Court bailiff.
- For debts over £600 we would advise instructing a High Court enforcement officer.
Bailiffs’ fees and High Court enforcement fees are added to the debt and paid by the debtor if enforcement is successful. We cannot guarantee that enforcement action will be refundable. In the case of High Court enforcements only, if the debt is not successfully recovered, you will be responsible for paying an abortive fee of £75 plus 20% VAT (£90 inc. VAT).
Disputed Debt Recovery Claims
Defence
If the defendant challenges the debt by sending a defence, we will be happy to handle the litigation and provide advice under our hourly rates listed below. We will provide you with advice within 21 days of receiving your instructions to proceed with the claim.
Hourly Rates
We charge an hourly rate for dealing with disputed debt recovery claims. The hourly rate applied to your case will depend on the value and complexity of your claim. The value/complexity will determine the level of lawyer used, either grade A, B, C or D. Our hourly rates are set out below:
There are 4 hourly rate bands for legal staff. These are currently categorised as:
A) £282 – solicitors and Chartered legal executives (CILEx) with more than 8 years relevant post-qualification experience.
B) £242 – solicitors and Chartered legal executives (CILEx) with more than 4 years relevant post-qualification experience.
C) £196 – other solicitors, CILEx lawyers, trainee solicitors and file handlers of equivalent experience.
D) £139 – trainee solicitors, paralegals and other file handlers without grade C experience.
Although the overall cost of our legal fees will vary depending on the value and complexity of the matter, disputed debt recovery claims can cost between £1,800 and £18,000 (incl. 20% VAT plus disbursements). We will always update you of any additional costs required on your matter before incurring them.
Other Disbursements
If the case is defended there is likely to be further disbursements incurred.
| Disbursement | Fee |
|---|---|
| Court application fee by consent | £119 |
| Court application fee without consent | £303 |
| Application to set out aside judgment | £303 |
| Application for a Charging Order | £131 |
| Application for a Third-Party Debt Order | £131 |
| Counsels’ fees | TBC +20% VAT |
| Tracing agents’ fee | TBC +20% VAT |
| Expert fees | TBC +20% VAT |
| Court Hearing Fees | Fee |
|---|---|
| Small Claims Track (dependent on the value of the claim) | £27 – £346 |
| Fast Track | £545 |
| Intermediate Track | £1,175 |
| Multitrack | £1,175 |
Timescales
From start to finish, the timescales involved in debt recovery claims may vary significantly. We will have a better understanding of likely timescales when we understand the details of your claim.
However, as a general estimate, debt recovery claims that are undisputed may take between 3 and 9 months.
Debt recovery claims that are disputed may take longer, potentially between 12 months – 36 months.
We will keep you updated on likely timescales throughout the course of your matter.
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