Fee Basis: Debt Recovery
We will always seek to agree a fixed fee with you on as many elements of a debt recovery matter as possible prior to implementing your instructions. The fixed fee will apply where noted in some of the distinct elements of the process set out below.
It is often the case that certain procedures must be followed before a court claim can be brought against a debtor. We will guide you through those procedures and engage in necessary correspondence with the debtor. We would usually envisage a charge of £350 + VAT to obtain your full instructions on the outstanding debt and submit suitable correspondence to the debtor.
Claim Preparation & Submission
Should the debtor fail to make payment having received our correspondence, we will need to bring a claim against them on your behalf. Subject to the complexity of the claim, we will usually be able to prepare the claim form and particulars of claim on your behalf and lodge it with the court. The charge for this is usually not more than £450 + VAT.
If the nature of the claim is complex we may advise you to take counsel’s advice. We will engage counsel on your behalf and seek to agree a fee for you that is proportionate within the context of the dispute.
A court fee will also be payable, which is based on the value of the claim. You can check the likely fee using the link below.
Court Directions & Hearings
If a debtor defends the claim it will be necessary to comply with directions issued by the court and, often, to arrange representation at a court hearing. We charge for this element on a chargeable time basis, which means we record the time spent working on your matter and provide you with a breakdown of the same when delivering our bill of costs. It is not possible to fix our fee for this element since each directions order will vary in length and complexity.
If a hearing is required, we will brief counsel for you. We will ensure that counsel is suitably qualified and charges a fee proportionate to the matter in hand. As a general guide, you should budget £1,000 + VAT per hearing for our preparatory work and counsel’s attendance.
Obtaining judgment in your favour does not guarantee payment. Enforcement of the judgment is often required and we charge for this element on a chargeable time basis, which means we record the time spent working on your matter and provide you with a breakdown of the same when delivering our bill of costs. As far as possible we will provide you with an estimate of the likely costs to be incurred before embarking on the enforcement process.