Debt Recovery

Most debt recovery actions resolve at an early stage. Please see stages 1 – 6 providing an overview of the likely process and the services we would provide.

Stage 1

Meet with you to take your initial instructions and consider the background of the matter and to consider all paperwork available to you which assists in the matter. We would also advise you consider carrying out due diligence on the debtor at this early stage.

Stage 2

Letter before action; i.e., writing to the debtor to establish liability and to consider alternative dispute resolution methods.

Stage 3

Issuing court proceedings; preparing all court papers and serving the same on the debtor.

Stage 4

Proceeding through the court process including considering documents and any argument/stance put forward by debtor; complying with court requirements such as directions, case management conference, disclosure, witness statements and trial preparation; further considering methods of alternative dispute resolution; making or responding to interim applications and advising you of the most effective way of resolving the claim. Generally getting the matter ready for trial if it is not resolved before trial.

Stage 5

Attending trial with a barrister.

Stage 6

Enforcement; If you are successful at the trial and judgement is obtained in your favour, we can consider various methods of enforcement and the best way of recovering payment should the debtor fail to pay in accordance with the order.

Average costs for each stage 

*VAT is charged at the current rate of 20%

Stage 1

£500 – £2,500 plus VAT

Stage 2

£750 – £3,500 plus VAT

Stage 3

£1,250 – £4,500 plus VAT

Stage 4

£5,000 – £22,500 plus VAT

Stage 5

£5,000 – £20,000 plus VAT

Stage 6

Dependent on method of enforcement 

Information on Average Fee

You should note that the number of hours spent on your matter depends on the number of documents and attendances, and whether anything is missing and how long it will take to obtain the missing documents.  We will keep in close contact with you by your preferred method of communication (telephone, email or letter) and our time in taking your instructions will be taken into account when providing you with fee estimates.

Our hourly rates are between £270 to £320 per hour (plus VAT), depending on the person dealing with your matter:

Hourly Rates

Paralegals/Trainee Solicitors: £170 plus VAT 

0-4 years PQE Solicitors: £250 – £275 plus VAT 

4 + years PQE Solicitors: £320 – plus VAT The exact cost will be dependent upon individual circumstances.  Your fee will reflect the time spent on the service, so where we spend more time on your matter, the higher your costs.

In the event that the claim is successful we will seek to obtain an order that the debtor pays all or a proportion of the creditor’s costs.

Likely disbursements (these are costs related to your matter that are payable to third parties. We handle the payment of the disbursement on your behalf to ensure a smoother process)

  • Counsel’s fees estimated between £3,000 to £10,000 plus VAT per day (depending on experience of the barrister) (excluding preparation).
  • Independent expert reports e.g. Medical reports (if applicable).
  • If we are attending interviews with you- our travel/ mileage costs.
  • Court fees to issue (commence) a claim are calculated at 5% of the value of the claim; e.g. a £50,000 claim will require a Court issue fee of £2,500. There will also be a hearing fee of either £545 or £1,090 depending on the value of the claim.  If any applications are required to be made during the course of the claim, then an additional Court fee of £255 is required per application.

 

Potential Additional Costs

The following factors could make a case more complex:

  • If it is necessary to make or defend applications to amend claims or to provide further information about an existing claim.
  • Defending any counter-claim made by the debtor.
  • Defending claims that are brought by litigants in person (i.e., those that are not legally represented).
  • Making or defending a costs application complex preliminary issues such as whether the claimant is disabled (if this is not agreed by the parties).
  • The number of witness documents.
  • Volume of documentation.
  • Approach adopted by opponent.
  • If the value of the debt exceeds £100,000.

We will always provide you with a fee estimate at the start of each new matter, therefore if you would like a bespoke estimate for your particular matter/ case please contact us to discuss.

Please rest assured, if your case involves unexpected complications, we will always inform you, including any additional fees that may apply, so that you can make an informed decision how to proceed.

Costs you may have to pay another party

In some types of litigation, the losing party may be ordered to pay their opponent's legal costs. This will depend on the nature and value of the dispute and or your claim. We will advise you about this risk at the outset of your matter and discuss what steps can be taken to minimise it, e.g., buying insurance.