Debt Recovery Pricing

The cost of pursuing a debt will always depend on the facts of the individual case and primarily whether the debt is disputed or not. Please call Sioban Calcott on 01926 491181 who can advise you of your options.

Costs for Uncontested debt recovery

The costs shown below apply where your claim is in relation to an unpaid invoice which is not disputed, and enforcement action is not needed. 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, which could be on a fixed fee (eg. if a one-off letter is required) or an hourly rate if more extensive work is required.

Debt recovery up to the value of £10,000

Our fees will vary depending on the value of your claim. The fees shown below are average prices which are intended to provide some guidance on costs. The actual cost to you will depend on several factors which we will discuss with you in full at the outset of your case.

Small claims up to £10,000 – Business to Business

In small claims cases, legal fees are largely not recoverable so you will be responsible for your own legal costs whatever the outcome. Fixed costs as prescribed by the Court will be recoverable. To ensure legal costs are reasonable and manageable, should the matter become defended, we provide small claims debt recovery work on a fixed fee basis.

We provide fixed fee charges that will apply in your circumstances:

£350 (plus VAT @ 20%: £70) for a first consultation, (up to 1 hour in duration) to review paperwork, take instructions and advise you on your position.

£350 - £750 (plus VAT @ 20%: £70-£150) for sending a letter before action and one chasing letter

£850 - £1250 (plus VAT @ 20% £170-£250) for preparing and filing a Claim Form and Particulars of Claim with the Court. Please note the Court issue fee will be an additional cost to you.

£90.00 (plus VAT @ 20% £18) for completing and filing a Request for Judgment

Small claims up to £10,000 – Business to Individual

In small claims cases, legal fees are largely not recoverable so you will be responsible for your own legal costs whatever the outcome. Fixed costs as prescribed by the Court will be recoverable. To ensure legal costs are reasonable and manageable, should the matter become defended, we provide small claims debt recovery work on a fixed fee basis. Please note that the Debt Recovery Protocol applies to claims between businesses and individuals and the pre-action timelines are longer than for business to business claims.

We provide fixed fee charges that will apply in your circumstances:

£350 (plus VAT @ 20% £70) for a first consultation, (up to 1 hour in duration) to review paperwork, take instructions and advise you on your position.

£800 (plus VAT @ 20% £160) for sending a letter before action and one chasing letter

£900 - £1300 (plus VAT @ 20% £180-£260) for preparing and filing a Claim Form and Particulars of Claim with the Court. Please note the Court issue fee will be an additional cost to you.

£90.00 (plus VAT @ 20% £18) for completing and filing a Request for Judgment

Uncontested claims for sums in excess of £10,000

For claims that do not fall within the Small Claims track but rather the Fast, the Intermediate, or Multi tracks, hourly rates will apply at the rate of £350 (plus VAT @ 20% £70) per hour, depending on who is dealing with your case.

Additional costs – disbursements

Disbursements are other costs which need to be paid to third parties in addition to our fees, for example, Court fees, Barrister’s/Solicitor Agent fees, Expert’s fees. We cannot avoid these where it is necessary to issue or take steps in proceedings.

A fee is payable to the Court on the issue of proceedings. That fee depends on the amount claimed and which increases in bands.

Full details of court fees can be found on HM Court and Tribunal Service website here: https://www.gov.uk/make-court-claim-for-money/court-fees

How long will it take?

Matters usually take between two to eight weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not payment is received following the initial demand or if it is necessary to issue proceedings and payment follows the award of a judgment in default. If enforcement action is needed, the matter will take longer to resolve and additional costs will be incurred.

Our team

Sioban Calcott and Florrie Talty-Sanghera understand the commercial considerations involved in dealing with unpaid debts. The work we will carry out will involve:

• Ascertaining the position regarding the debt
• Liaising with your debtor prior to commencing court proceedings in an effort to resolve matters
• Preparing, drafting, and filing the Claim Form and Particulars of Claim and any documentation referred to therein with the Court
• Entering judgment in default

Should the Judgment not be satisfied within the required timescale, follow up enforcement proceedings with a view to maximising the chances of recovery of the debt due

Risk assessment

We will also undertake a risk assessment with you to enable you to make an informed decision about whether to proceed with a claim and we will also consider with you whether pursuit of a debt claim is commercially viable.

Contested Claims

It is much more difficult to generalise about costs where a claim is contested since so much depends on the precise nature of the dispute and if it is necessary to involve others for instance a Barrister and/or an Expert Witness. As such, costs can vary widely.

If court proceedings have to be issued, there are several factors which may affect the cost of pursuing a claim including:

• The number and complexity of the issues in dispute
• Whether there is a dispute as to the terms of a contract
• Whether any contract is written or verbal
• The level and quality of the evidence in support
• Whether there is a dispute about the quality or type of goods/services supplied
• The amount of documentation to be reviewed
• The number of witnesses required to provide statements of fact for Trial
• Whether there are issues that will require expert evidence to be provided to the Court
• The location and duration of the Trial

Once in receipt of all necessary information and documentation from you, a member of our team will happily provide you with a fee proposal for the work to be undertaken on a stage by stage basis.

Reviewed:  November 2024