Price Guide: Debt Recovery
There are occasions when, for seemingly no reason that you are aware, a party fails to pay to you what is due and owing. There is no disagreement about the service or goods provided, or the amount charged, but payment has not been received.
We describe this as “debt recovery” and differentiate it from what we would otherwise call a contract dispute which is where one party disagrees that the sum is owing for any given reason.
We are able to offer an affordable and cost-effective means of seeking to recover your debt. Our fee includes:
- Taking your instructions and reviewing documentation
- Undertaking appropriate searches
- Sending a Letter before Action
- Drafting and issuing a Court claim
- Where no Acknowledgment of Service or Defence is received, applying to the Court to enter Judgment in Default
- When Judgment in Default is received, writing to the other side to request payment
- If payment is not received within 14 days, providing you with advice on next steps and likely costs
Our fees for this work are broken down at each stage and are determined by the value of the debt being sought. The fees are as follows:
The above fees are all shown as inclusive of VAT.
In addition to this firm’s costs, there is a Court fee payable on issuing a claim at Court. This is set as follows:
When issuing a claim, you are able to recover, subject to the Court allowing it, the Court Issue fee and a contribution towards our fees. The contribution the Court will allow is as follows:
We will, as a matter of course, consider when preparing the Letter before Action and issuing proceedings whether statutory or contractual interest can be added to the debt, costs as set out above and/or any compensation as may be allowed by, in particular, the contract or the Late Payment of Commercial Debts (Interest) Act 1998.
The above costs apply, as outlined, when the matter is in relation to an unpaid invoice which is not disputed and enforcement action is not needed. They include 30 minutes of routine communication, and additional correspondence may be charged in addition; we will discuss this with you if the position arises. It presupposes that payment will be made by the other party following receipt of the Letter before Action, following receipt of Court proceedings or following granting of Default Judgment by the Court. In the event that enforcement action is required, such as for the instruction of a bailiff, advice of the options available will be presented to you. In addition, if the other party disputes your claim at any point, we will then discuss any further work required and provide you with advice about costs as necessary.
Matters usually take anywhere between 1 and 8 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 or the debt is disputed, the matter will take longer to resolve.