Costs for Uncontested Debt Recovery
When the debtor doesn’t try to defend the claim…
|Stages of Recovery||Fixed Fees (plus VAT)||Charges on Recovery|
|Upon receipt of your initial instructions this firm will send a letter before action to the debtor. This will be payable in all instances irrespective of whether any money is recovered.||
|Upon recovery of a payment, the charges will be calculated at 8% of the sum recovered up to a maximum charge of £80.00 plus VAT.|
In the event that we are instructed to issue court proceedings it will be necessary to pay the court a claim fee which is added to the debt. The court fees (a disbursement) are dependent on the size of your claim and are as follows:-
Court Fees (Disbursements)
|These fees are payable by the debtor (unless adjudged otherwise by the court), but are payable by you in the first instance.|
|In the event that we are instructed to issue court proceedings including enforcement proceedings (see 7 below) the following charges for our work involved will apply, irrespective of any money being recovered. On matters up to the sum of £1,000.00.||
|Upon payment by the debtor we will also charge 8% of the debt recovered, in addition we will also retain any fixed costs which are recovered from the debtor.|
|On matters from £1,000.00 up to the sum of £5,000.00.||
|Upon payment by the debtor we will also charge 8% of the debt recovered in addition we will also retain any fixed costs which are recovered from the debtor.|
|On matters from £5,000.00 up to the sum of £20,000.00||
|Upon payment by the debtor we will also charge 8% of the first £10,000.00 recovered plus 2% of any of the debt recovered over and above £10,000.00, in addition we will also retain any fixed costs which are recovered from the debtor.|
|On matters from £20,000.00 and upwards||
Upon payment by the debtor being received, we will Charge 8% of the first £10,000.00 recovered and will also charge 3.5% of the any sums recovered between £10,000.00 and £20,000.00 plus 2% of any sum recovered over and above £20,000.00, in addition we will also retain any fixed costs which are recovered from the debtor.
We will not charge you for our entering a judgment on uncontested matters.
But we will retain any fixed costs payable by the debtor.
|Warrant or Writ of Fi.Fa.||£35.00|
|Attachment of Earnings||£35.00|
|Application to obtain financial information *||£50.00|
|Third Party Application||£150.00 (uncontested)|
|Charging Order||£150.00 (uncontested)|
|Statutory Demands||£150.00 (uncontested)|
|Re-issue of enforcement (or Application) *||£20.00|
Glossary: What do these legal terms mean?
- Warrant – a legal document authorising an action as part of the justice process.
- ‘A lien’ is your right to retain possession of the debtor’s property until they pay their debt.
- Attachment of earnings – this order tells the debtor’s employer to divert money directly to you.
- Third Party application – this allows you to take payment directly from the debtor’s bank, building society, business account or someone that owes the debtor a debt that is owed or accruing.
- Charging order – this secures the debt against the debtor’s home or any other property they own (or shares for example).
- A Statutory demand – your formal demand for payment of the debt and the first step towards Bankruptcy proceedings.
Uncontested Debt Recovery Costs – More Information
Typically our costs for dealing with non-contentious (uncontested) matters range from £15+VAT to £800+VAT. Contact us for more details.
You will be liable for any disbursements and expenses. These could include court fees, agents’ fees and searches. We will tell you the cost before doing the work (unless otherwise agreed). There may be travel disbursements if we attend court. VAT is payable on certain expenses.
If you no longer want us to deal with a matter after we have issued court proceedings, you will still have to pay our costs – together with any fixed costs (solicitors’ costs) you are entitled to recover from the debtor.
Unless otherwise agreed in writing, we will receive payments on your behalf from your debtors. We will forward payments to you when we have received funds.
When payment of your debt is in instalments, we will forward these to you when it is economical to do so. We reserve the right to charge £30+VAT for administration for every six months of the arrangement.
Contentious Or Defended Matters
Costs for contested/defended debt recovery cases depend on how long they take.
Our hourly rates are:
|Debt Collection Manager. Grade C (Legal Executives)||£181.00 plus VAT|
|Assitant Solicitor Grade (dependent on grade and status)||Between £181.00 - £260.00 plus VAT|
|Partner||£300.00 plus VAT|
If the debtor disputes the debt, it is difficult to determine the precise legal costs that would be involved. But we can provide a cost estimate – once we have received full details of the debtor’s objections.
‘Our Charges’ are the sums we will bill you for carrying out your instructions.
‘Disbursements and expenses’ are costs that may be required to carry out your instructions (such as court fees, agents’ fees, searches etc). Not all disbursements are recoverable from a debtor.
‘Solicitors costs’ are fixed amounts that may be added to court proceedings as a court claim progresses. The debtor will be required to pay these, however you may be required to pay them in some circumstances.
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