Below is an outline of the costs you can expect to incur in seeking to recover a debt from another business.
Please note however that if the debt is, or becomes, disputed then our fixed fees will no longer apply and all further costs will be based on our hourly rates (i.e. if the debtor files a Defence to the claim). We will discuss with you the additional work required and the likely cost in these circumstances.
Letter Before Action
We will charge you a fixed fee of £50 plus VAT to send a standard Letter Before Action to your debtor setting out the sum due for payment and what action will be taken if they fail to make payment. The letter will give the debtor up to 30 days to make payment.
If the debtor fails to make payment we will then issue Court proceedings on your behalf. Our fee for preparing the claim, requesting Judgment in Default (if applicable), sending a copy of the Judgment to the debtor and advising you on the next steps if payment is not made will be fixed as follows:
|Debt value||Court fee (as at October 2018)||Our fee (plus. VAT)|
|£1 to £5,000||£35 – £205||£300 plus VAT|
|£5,001 – £10,000||£455||£425 plus VAT|
|£10,001 – £100,000||5% of the value of the claim||5% value of the claim plus VAT|
From the time the claim is sent to the Court for issuing it usually takes around 4 weeks to receive Judgment in Default.
If the debtor does not make payment and enforcement action is needed (i.e. bailiffs), the matter will take longer to resolve and will be subject to further costs which will be explained to you.
Joe Sandercock will handle your matter. Joe qualified as a solicitor in 2013. Joe has significant experience in debt recovery work and routinely deals with both undisputed and disputed debt recovery matters.