We are required to set out price and service information for dealing with debt recovery (in claims up to £100,000).
This is an example of the typical costs for a business to business debt that is undisputed, where the value of the debt is above £10,000 and up to £100,000:
Our Fee: between £600 and £1,200, plus VAT (depending upon the number of invoices)
Court Fee: 5% of the value of the claim.
These costs apply where your claim is in relation to a properly rendered unpaid invoice where court proceedings rather than the service of a statutory demand is used, where the debt is not disputed prior to the commencement of proceedings, and which is not disputed by way of a defence and where enforcement action is not needed. 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, which could be on a fixed fee (e.g. if a one off letter is required), or an hourly rate if more extensive work is needed. Please note we do not act where the amount in issue is less than £10000 as this will be a small claim where no legal costs are recoverable.
Anyone wishing to proceed with a claim should note that:
- Where we are able to recover some of your costs the VAT element of our fee cannot be reclaimed from your debtor we will discuss this with you in greater detail when we are retained.
- The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
Our fee includes:
- Taking your instructions and reviewing documentation.
- Undertaking appropriate searches.
- Sending a letter before action.
- Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim.
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgment in Default.
- When Judgment in Default in received, write to the other side to request payment.
- If payment is not received within 21 days, providing you with advice on next steps and likely costs.
Matters usually take around 3 to 15 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgment in Default. If enforcement action is needed, the matter will take longer to resolve.