Debt Recovery

We don’t offer entirely fixed fees for any claim as each client and claim is unique. We don’t take a percentage of your debt upon recovery.  

Fee limits will be agreed at the outset of instructions with regular updates. We would discuss with you at the outset the initial action you would like to take and what credit limit you would like to set. Once the action has been taken or the credit limit has been reached, we would then discuss further action with you.    

Starting a Debt Claim – Unpaid Invoice

Where your claim is in relation to an unpaid invoice which is not disputed, we can release a letter before action and, if the debt is paid immediately following the same, our costs could be limited to £75 plus VAT for debts lower than £10,000. Where additional correspondence is required to the Debtor or to take instructions, further costs may be incurred. Our hourly charging rate is £177.00. 

Where a debtor is a Limited Company matters can proceed swiftly to Court if payment is not made within 7 days of the Letter before Action. However if the debtor is an individual or a sole trader carrying out a business they are entitled to 1 month to respond to the letter before action. Advice on time frames will be provided upon receipt of instructions.

After the Letter Before Action – Unpaid Invoices

If payment isn’t received and you don’t have any contact from the Debtor you are likely, subject to advice, going to need to take the next step of issuing County Court Proceedings. We can confirm that where a debt is under £5000 and it is a straight forward claim (such as simply an unpaid invoice), the claim can be issued typically with costs to issue in the region of £225 -£300 plus VAT and the court fee.

For more high value but relatively straightforward claims with a value of £5000 -£15000, costs to issue could be in the region of £350 to £550 plus VAT and the court fee. This all depends on the work involved, or is likely to be involved, when estimates are discussed with you.

If  a claim is over £10,000 it is no longer a small claim and is dealt with separately by the County Courts if defended. There is greater work involved and we will advise on costs on an individual basis for each claim.  Legal costs can be recovered on claims greater than £10,000 however you are unlikely to recover all legal fees, it is ultimately the courts discretion at a final hearing to award reasonable legal costs to the winning party.

We will discuss and agree initial and expected costs at the outset of all instructions. If more extensive work is needed, for example if the debt is not paid with the defendant disputing the claim and you require us to draft replies and/or issue a claim, then hourly rates would apply.

Debtor disputes or defends the claim

If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary. These could be on a fixed costs for certain parts of the claim, for example: taking your substantive instructions and reviewing or drafting documentation; where no Acknowledgement of Service or Defence is received, applying to the Court to enter judgement in default; when judgment in default is received, writing to the other side to request payment; if payment is not received within the further deadline, providing you with advice on next steps.

If you have a Defended claim on the Small Claims Court (debts of less than £10,000) a general costs estimate would be £2000 to £5000 plus VAT and Court Fees. For higher value claims which fall on the Fast Track or Multitrack more work is involved with costs likely to be in the range of £4,000 to £10,000 plus VAT. Please note the Defendants can also claim their reasonable legal costs if they successfully Defend a claim greater than £10,000.

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 matters where enforcement action, such as the bailiff, is needed to collect your debt.

The court fees payable upon issuing a claim are shown below. We always try and  issue claims  with Money Claims Online as the process is quicker and the fees are lower as shown below. We would need to issue on a paper form for more complicated claims.

Claim amount

Paper form fee

Online claim fee

Up to £300

£35

£25

£300.01 to £500

£50

£35

£500.01 to £1,000

£70

£60

£1,000.01 to £1,500

£80

£70

£1,500.01 to £3,000

£115

£105

£3,000.01 to £5,000

£205

£185

£5,000.01 to £10,000

£455

£410

£10,000.01 to £100,000

5% of the claim

4.5% of the claim

The Solicitors Costs below are claimable upon issuing the claim:

Between £25 and £500                   £  50.00
Between £501 and £1000              £  70.00
Between £1001 and £5000           £  80.00
Between £50 1 and £10000          £100.00

Both the Court fee, solicitors’ costs and any interest or statutory compensation would be included in the claim.

County Court Judgments and Orders for Debt and Costs

If payment is not made following the issue of the claim, and if the claim is not Defended, you will likely be entitled to enter Judgment for the Claimed Debt. Further time would be engaged requesting the Judgment and then advising on enforcing the Judgment.

From the issuing of the Claim, it takes approximately 3-6 weeks to obtain Default Judgment depending on the Court and actions of the Defendant.

Typical options of enforcement include Bailiffs, High Court Enforcement Officers, Charging Orders and Bankruptcy/Insolvency Proceedings. Further Court Fees would be incurred when dealing with the same with further legal costs incurred of approximately £150 plus VAT.

Bankruptcy and Insolvency Action

We do offer advice on serving Statutory Demands on both individuals and Companies with a view to Bankruptcy or Insolvency action against Debtors. This is again involved and advice would need to be provided upon each individual case with costs advice being provided at that stage.

Typical costs for preparing and arranging the service of a Statutory Demand would be £300 to £400 plus VAT and Process Server fees (up to £110).

Following the Statutory Demand to issue a Bankruptcy Petition against an individual and see the application through to the final hearing, additional costs are likely to be £1,250 to £3,000. The Court’s fees and the Official Receiver’s fees will also be payable with further information to be provided upon instructions.

Following the Statutory Demand to issue a Winding up Petition against the Company and see the application through to the final hearing, additional costs are likely to be £2,000 to £4,000. The Court’s fees and the Official Receiver’s fees will also be payable with further information to be provided upon instructions.