Debt recovery is mainly a two-stage process.
The assessment of the merits of successfully recovering a debt are analysed briefly at this stage, sufficient to enable a pre-action letter to be generated. The cost will this service will typically be between £150 plus VAT and £600 plus VAT and will be completed within one week of receipt of all relevant information.
If the debtor raises issues regarding the liability to make payment, those will be assessed by an experienced solicitor with over three years experience in civil litigation and such assessment will be based on the hourly rates of the individual solicitor dealing with matters; the cost for this will be advised separately. The hourly rate applicable will depend on the complexity of the issues raised and will range from between £120 plus VAT to £295 plus VAT. The timescale for the assessment stage depends on the issues raised and can be between 1 to 2 weeks on average.
If no dispute is raised, and it is appropriate commence Court proceedings, then a Court Fee is payable to the Court Service based on the amount claimed as follows:
|Amount of debt||Court Fee|
|Up to £300||£35|
|£10,000-£200,000||5% of sum claimed|
Our fees for preparing a claim form for an undisputed debt are likely to be in the region of £200 plus VAT to £400 plus VAT; it would take us between 1 – 2 weeks at most to prepare a debt-recovery claim form.
Once a claim is issued, the defendant has 14 days from service upon them of the claim to file a defence or acknowledge service, such acknowledgment extending the deadline for filing the defence up to 28 days from service of the claim form. The length of the process is then entirely dependent upon the issues in dispute, the time is takes to address them and it is not possible to give any parameters where the matter is disputed.
Where no Acknowledgment of Service or Defence is received, we would automatically apply to the court to enter Judgement in default. We charge £50 plus VAT for this.
If payment is not received as per the judgment, we would provide you with options for enforcement included within the above price.
It is unlikely that further expenses will need to be incurred up to this stage. In contested matters, however, further costs and expenses would be incurred and we can advise on this based on the facts of the particular case.
Should you need to enforce a judgment debt obtained in your favour, then additional Court fees apply as to additional costs for our services, based upon the enforcement option being sought.
The rate of VAT applicable to all above sums is 20%.