UNDISPUTED BUSINESS DEBT RECOVERY | COMPANY TO COMPANY
As with all of our pricing, we provide transparency and certainly of the costs you may incur.
Below are our costs for seeking recovery of undisputed business debts on a single instruction basis (if we are asked to handle multiple debts we will adjust our fees accordingly). Dependant on the type of work and the stage of the process, we will either work on a fixed fee or on an hourly rate basis. When an hourly rate is more appropriate, our focus is always on transparency.
We will provide you with a view of the approximate overall cost for the matter from the outset, and keep you closely updated as work progresses.
Prior to any court claim a pre-action letter will be required. This would comprise of a letter setting out the balance of the debt outstanding and a demand for repayment with the threat of court action to follow if not repaid.
To prepare the initial letter we will require:
- Name and address of the debtor
- Amount owed
- Evidence as to how that debt has arisen and whether interest or other charges have been added
- Any prior correspondence demanding payment of the debt
We are usually able to offer a fixed fee for this service with prices starting at £275 +20% VAT.
We will always provide you with a tailored quotation at the start of the transaction, taking into account the specific details of your instruction.
NEGOTIATION OF REPAYMENT BY INSTALMENTS
Often an initial demand for payment can result in offers of payment being received. Our fees for undertaking negotiations on your behalf can be agreed as a percentage of the debt recovered, paid upon receipt of the funds or an hourly rate basis, paid in advance.
LITIGATION COSTS (UNDISPUTED CLAIM)
The fixed costs, set out in the table below, apply where your claim is in relation to an undisputed debt and does not include enforcement action. If the other party disputes your claim at any point, we will discuss any further work required and provide you with a revised fee quote. Our fees for disputed matters can be agreed on a fixed fee basis or an hourly rate if more extensive work is needed. Please note our fees listed below are exclusive of VAT which will be charged at 20%.
|Debt Value||Court Fee||Our Fee (excl VAT)||Total Dependent upon method of issue (excl VAT)|
|Up to £300.00||£35||£250.00||£275-285.00|
|Greater than £300.00||£50.00||£275.00||£310-£325.00|
|Greater than £500.00||£70.00||£300.00||£360-370.00|
|Greater than £1,000.00||£80.00||£325.00||£455-465.00|
|Greater than £1,500.00||£115.00||£350.00||£455-465.00|
|Greater than £3,000.00||£205.00||£400.00||£585-605.00|
|Greater than £5,000.00||£455||£500.00||£910-955.00|
|Greater than £10,000.00||5%||£700.00||Fee Dependent|
|Greater than £15,000.00||5%||£1,050.00||Fee Dependent|
|Greater than £50,000.00||5%||£3,000.00||Fee Dependent|
|Greater than £100,000.00||5%||£6,000.00||Fee Dependent|
Please note that upon conclusion of a successful claim the Court fee can be recovered along with very limited fixed commencement costs (between £50-100.00). However, our fees are not recoverable in claims of £10,000.00 or less, as these matters will be allocated to the small claims track where legal costs are unrecoverable save for in exceptional circumstances.
Anyone wishing to proceed with a claim should note that:
- The VAT element of our fee cannot be reclaimed from your debtor.
- Interest and compensation may take the debt into a higher banding, with a higher cost.
- The costs quoted above do not include enforcement action, such as the bailiff needed to collect your debt.
Our fee includes:
- Taking your instructions and reviewing documentation
- Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
- Where no Acknowledgement of Service or Defence is received, applying to the court to enter Judgment in default.
The following services are not included:
- Obtaining credit reports and instructing investigators to report on the debtor’s financial status/ability to pay
- Writing to the other side to request payment once in receipt of Judgement in default (the Judgement will be served upon the Debtor by the Court)
- Providing you with advice on enforcement options.
The timescales for dealing with claims can vary significantly and depends upon various factors including whether a claim is issued online or via the issuing Court.
The following timescales are guidelines as to the key stages:
- Instruction to sending of pre-action letter – 1-2 weeks (dependent upon capacity)
- Pre-action letter to drafting of claim – 2-4 weeks
- Filing of claim to Issue –8-12 weeks dependent upon the method of issue (online or Court)
- Date of issue to application for default Judgment – 2-4 weeks
- Application for default Judgment until granting of default Judgment 6-8 weeks
- Granting of default Judgment to payment of Judgment – 4-6 weeks thereafter enforcement action can be discussed if payment is not forthcoming.