Debt Recovery

Costs Information for Debt Recovery claims for businesses up to £100,000

The SRA Transparency Rules require law firms to provide relevant information about the costs of some of their services to assist the public and small businesses to make informed choices when considering purchasing legal services. For businesses, the services we provide and which are covered by these Rules include debt recovery up to a value of £100,000.

The fees and disbursements we will charge cover a typical debt recovery claim in relation to an unpaid invoice, which is not disputed of up to £100,000 and enforcement action is not required. Our fees are based on hourly charge out rates and are calculated by the number of hours we take to complete the work. See rates table below. 20% VAT will be added to our fees and is not recoverable from the debtor. There will also be disbursements. Disbursements are payments which we make to third parties arising in the course of providing our services. VAT is not charged on court fees.

These fees will, however, differ depending on complexity where, for example, counsel’s involvement is required to advise and draft proceedings in which case fees will increase. If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which could be on a fixed fee (e.g. if a one off letter is required), or an hourly rate if more extensive work is needed.

Costs Table

 

The costs table above covers the following work that we will undertake:

• Taking instructions and reviewing documentation .
• Undertaking appropriate searches.
• Sending a letter before action. Receiving payment and sending it on to you, or if the debt is not repaid, drafting and issuing proceedings.
• Where no Acknowledgment of Service of Defence is received, applying to the Court to request that Judgment in Default be entered.
• When Judgment is entered, write to the debtor and demand payment within 7 days.
• If payment is not received within the deadline, providing you with advice on next steps and likely costs.

The costs table does not include work where the debtor:

• disputes your claim and we enter into correspondence and/or some form of ADR is adopted;
• files a defence to your claim;
• applies to set aside Judgment in Default;
• is based outside of the jurisdiction; or
• fails to satisfy the Judgment debt and enforcement proceedings are required such as a bailiff to collect the debt.

In these situations, we will discuss next steps with you and advise you of the cost implications going forward.

Insolvency proceedings

 Where insolvency proceedings are to be pursued, we will agree the basis upon which our costs of the proceedings will be charged, before proceedings are commenced.

Timescale 

Matters usually take 2 to 4 weeks from receipt of instructions from you to sending a detailed letter of claim; then time to issue a claim may depend on on the relevant court, but undefended proceedings are likely to take 2-4 months whilst defended proceedings may take 18months or more. Enforcement of a judgment may take varying times depending on the defendant’s location and assets and the type of enforcement used, but typically 3-4 months unless complex.

.

Last reviewed January 2025