The stages and services in acting on such matters include (this is not an exhaustive list):
- Taking your 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 paid, drafting and issuing a claim;
- Where no acknowledgement of service or defence is received, applying to the Court to enter Judgment in default;
- Where Judgment in default is received, writing to the other side to request payment. If payment is not received within the days specified, providing you with advice on next steps and likely costs; and
- Enforcement of Judgment debts.
- Serving statutory demands
- Issuing petitions for bankruptcy
- Issuing petitions for winding-up
We charge for these services based on an hourly rate which ranges from £150 - £400 and depends on the particulars of the case and the level of experience of the person who has conduct of the matter. As our services are bespoke to our clients, the overall cost for these services will depend on various factors. At the outset of the matter, we will provide a quotation in line with the specific needs of our client.
Our Team
Our Debt Recovery team undertakes all forms of commercial and debt recovery matters and provides bespoke debt recovery solutions tailored to meet the needs of each particular client.
The team is led by
David Robinson. David has over 14 years' experience in the debt recovery filed and has undertaken work
for a broad range of clients including a raft of commercial clients across many
sectors as well as high street banks, building societies and debt purchasers.
Rachel Flower is the Commercial Recoveries Manager and has over 14 years' experience in Debt Recovery sector. She works across all of the team's debt recovery clients and has assisted a range of businesses from SMEs to blue-chip companies to collect outstanding debts.
Our fees
| Collections and Pre Litigation | Proposed Fixed Fee |
|---|---|
| Letter Before Action (LBA) | Between £50 and £250 per letter |
| Collections commission | Between 10% and 25% of all sums recovered. |
The fee for the LBA and percentage commission will depend on the nature and age of the debt and any issues that have been raised prior to our instruction.
If no recovery is made following the issue of the LBA then it will be necessary to issue proceedings and obtain a county court judgment. Our costs for issuing proceedings and obtaining will be as follows:
| Litigation | Proposed Fixed Fee |
|---|---|
| Issue claim | £175 - £450 |
| Obtain Judgment in Default | £75 - £150 |
| Tomlin Order/Settlement Agreement | £150 - £350 |
These fees are exclusive of VAT (20%) and disbursements, and based on the assumption that the claim is not disputed or defended. If a matter becomes defended/complex we would propose dealing with the matter on an hourly rate basis. A breakdown of our hourly rates is set out in the section below.
In addition to the fees outlined above, if a claim is issued in the County Court or High Court, the following court issue fees will apply:
| Claim amount Up to £300 £300.01 to £500 £500.01 to £1,000 £1,000.01 to £1,500 £1,500.01 to £3,000 £3,000.01 to £5,000 £5,000.01 to £10,000 £10,000.01 to £100,000 £100,000.01 to £200,000 More than £200,000 |
Fee £35 £50 £70 £80 £115 £205 £455 5% of the claim 5% of the claim |
Additional Disbursements
In addition to the court issue fee, you may have to pay additional expenses, known as disbursements. These might include Barristers fees, Court fees and Expert fees. Disbursements are subject to VAT unless an exemption applies.
Agent's Fee
On occasion we will instruct an enquiry agent, process server, enforcement officers or solicitors' agent to undertake specific matters. A quotation will be provided on each occasion. The fees normally range from £80 to £300 in addition to VAT (20%).
Barristers' Fees
In some cases, it may be necessary to instruct a barrister to represent you. We negotiate the fees of a barrister for you once it has been decided that a barrister needs to be involved in the case. Barristers' fees will depend on the complexity of the task and the level of their experience and expertise. Barristers will charge VAT (20%) in addition to any quoted fees.
Such fees can range between £300 for a junior barrister to conduct a short Application and up to £450,000 for a senior barrister who would charge a fee for preparation of a complex or valuable case.
In determining the fee, the factors that will influence the cost of a barrister include:
- the barrister's seniority, expertise and reputation;
- their hourly rate;
- whether or not the opponent is legally represented;
- where in the country the hearing is taking place;
- the length of the hearing;
- the complexity of the issues;
- the value of the claim or its reputational implications;
- the volume of documentation involved;
- the number of witnesses.
Expert Witnesses
On some occasions we may also need the services of an expert witness, for example to provide an opinion upon a specialist area. The costs of instructing the expert are an example of an expense that you would have to meet in addition to our legal fees. The expert's costs will vary according to the complexity of the report they are asked to prepare and how involved they become with the case.
The range of fees might start as at little as £1,000 for a short report or letter, ranging upwards of £5,000 if the expert has to give evidence during Court proceedings. The figure could be higher if the expert has very specific expertise or is required to be involved in multiple days of the hearing.
| Enforcement Action | Court fee | Our fee |
| Charging Order (per property) | £119 (plus HMLR fees) | £450 |
| Writ of Control | £71 | £125 |
| Warrant of Control/Transfer to High Court | £83-£130 | £175 |
| Attachment of Earnings | £119 | £300 |
| Order for Questioning | £59 - £119 | £375 |
Insolvency Action
In some instances issuing a bankruptcy or winding up petition against a debtor. The costs and disbursements for each stage of these processes are set out below.
| Stage of Bankruptcy | Proposed Fixed Fee |
|---|---|
| Statutory Demand* | £250 - £450 |
| Bankruptcy Petition** | £350 - £750 |
| Application For Substituted Service (if required)*** | £200 - £350 |
| Attend/Prepare for Bankruptcy Hearing**** | £250 - £450 (for each hearing) |
* includes preparation of the Statutory Demand, to include calculating the interest and late payment fees if any and arranging to have the same served on the debtor.
** includes preparation of the bankruptcy petition, and arranging to issue the same, receiving the same back issued, and arranging for service on the debtor.
*** includes the preparation of an application should it not be possible to personally serve the debtor and then dealing with the substituted service.
**** instructing an agent/ to attend the hearing of the bankruptcy petition, receiving report and reporting to you.
Disbursements
As with the debt claim you may also have to pay additional expenses, known as disbursements. These might include Barristers fees, Court fees and Agents Fes. The standard disbursements for a bankruptcy petition are as follows.
| Disbursement | Fee |
|---|---|
| Court fee (Petition) | £302 |
| Process Server (Statutory Demand) | £120 plus VAT |
| Official Receiver Deposit* | £1,500 |
| Process Server (Bankruptcy Petition) | £150 plus VAT |
| Advocate/Agent's Fee for attending hearing** | £150 – £350 plus VAT |
| Application for Substituted Service | £275 |
* If the petition is withdrawn the deposit is refunded, save for a £50 administration fee.
** This fee may increase if a more senior advocate/agent/barrister is required to attend the hearing
| Stage of Winding Up | Proposed Fixed Fee |
|---|---|
| Demand on Company | £150 |
| Winding up Petition | £450 - £850 |
| Advertisement of Petition | £300 |
| Attend/Prepare for Hearing | £450- £750 (for each hearing) |
Disbursements
| Disbursement | Fee |
|---|---|
| Court fee | £302 |
| Process Server (Statutory Demand) | £150 plus VAT (20%) |
| Official Receiver Deposit* | £2,500 |
| Advertisement Fee | £103.60 plus VAT (20%) |
| Counsel's/Agent's Fee for attending hearing** | £250 plus VAT (20%) |
* As with bankruptcy if the petition is withdrawn the deposit is refunded, save for a £50 administration fee.
** This fee may increase if a more senior advocate/agent/barrister is required to attend the hearing
As stated above, when a matter becomes defended or disputed, either before formal proceedings or during a claim, bankruptcy or insolvency, the above pricing structures will not apply.
At each stage of a defended matter we will provide fee estimates for the work that is to be undertaken. Depending on the complexity of the dispute fees can range from £15,000 to £50,000 plus VAT (20%) and disbursements
| Solicitor Grade | Hourly rate (exc VAT) |
|---|---|
| Partner | £425 to £550 |
| Director | £400 |
| Senior Associate | £350 |
| Associate | £275 |
| Solicitor | £225 |
| Trainee Solicitor/Paralegal | £150 to 175 |