Debt Recovery

What is Debt Recovery Law?

Debt Recovery specifically relates to the recovery of a debt owed by one party to another. Recovering your debts from individuals, existing clients or customers can be a difficult task.

Procedure

Pre action protocol

The pre action protocol for debt claims outlines specific procedures to be followed (when recovering debt between individuals and sole traders) before issuing proceedings are made*. If the Pre action protocol is not complied with it could have severe consequences for your claim.

* Business to business transactions vary slightly unless the debtor is a sole trader but this is something we will consider and tailor the process accordingly.

Work expected to be carried out in this transaction but not included.

Such enforcement action as may be necessary, including bankruptcy proceedings, enforcement through bailiffs and applications for charging orders on property and subsequent sale, such additional work would be carried at our hourly rates.

Time scale

Stage 1

We issue a letter written in accordance with the new rules of claim attaching all necessary compliance enclosures, this involves the threat of legal proceedings if the debt is not paid as requested. This stage will usually take around 1 month.

Stage 2

If no payment terms are agreed or no response received then depending on your instructions we can issue court proceedings.

If no defence is submitted we can obtain judgment from the Court stating the amount inclusive of interest and costs ( if applicable) that is due. In cases when there is no defence we would expect this stage to last around 1 month.

If a defence is submitted then we will, if you choose to pursue the debt proceed to an Enforcement Trial. This could take between 6-9 months.

Stage 3

The last stage is enforcement* which can take between 6 to 12 months.

Fees

We are happy to provide you with a free, no obligation estimate for our debt recovery services. The initial enquiry to discover what the cost will be is free of charge.

Most debt collection cases under £10,000 are done on a fixed fee basis recoverable from the other side, however if the other side is not or is incapable of paying you will be responsible for the payment of those costs.

The fixed costs are:

Where the claim form is served by the court or by any method other than personal service by the claimant

£25 - £500 = £50

£500 - £1,000 = £70

£1,000 - £5,000 or the only claim is for delivery of goods and no value is specified or stated on the claim form = £80

£5,000+ = £100

Where the claim form is served personally by the claimant; and there is only one defendant

£25 - £500 = £60

£500 - £1,000 = £80

£1,000 - £5,000 or the only claim is for delivery of goods and no value is specified or stated on the claim form = £90

£5,000+ = £110

Where there is more than one defendant, for each additional defendant personally served at separate addresses by the claimant

£25 - £500 = £15

£500 - £1,000 = £15

£1,000 - £5,000 or the only claim is for delivery of goods and no value is specified or stated on the claim form = £15

£5,000+ = £15

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 are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.

Matter Specific Disbursements

Court Fees

The Court fee (no VAT) is dependent on the value of the as set out below:

£0 - £300 = £35

£300 - £500 = £50

£500 - £1,000 = £70

£1,000 - £1,500 = £80

£1,500 - £3,000 = £115

£3,000 - £5,000 = £205

£5,000 - £10,000 = £455

£10,000 - £200,000 = 5% of the claim.

£200.000+ = £10,000

Barristers fee (if applicable) – dependant on the barristers level of experience. All fees will attract VAT – this will be discussed with you if the need for a barrister arises.

General Disbursements

For more information about general disbursements listed below and their cost please click on the "General Disbursements" button below:

Identification of client.

Telegraphic Transfer fees