Debt Recovery up to £100,000
The firm undertakes debt recovery up to £100,000 (and more) on behalf of a variety of clients. This can be done by one or two methods.
Insolvency/Bankruptcy
If the debt is undisputed then a statutory demand can be served on the debtor (either an individual or a company) followed by a bankruptcy petition in the case of an individual or a winding up petition in the case of a corporate entity.
Our fees to draft and arrange for service of a statutory demand are approximately £250 – 500 plus VAT at 20%. Service would be effected by a process server whose fees would be billed as a disbursement in the approximate amount of £115 plus VAT at 20%.
If it is necessary to issue either a bankruptcy petition or winding up petition, then a further quote can be given for this but the approximate costs are as follows:
- Winding up petition: our fees will be approximately £3,000 plus VAT at 20%. There will also be disbursements including a court fee (£332), an official receivers deposit (£2,600), counsels fees (approximately £500-750 plus VAT) and an advertising fee (approximately £100 plus VAT). The court fee and official receiver deposit do not attract VAT but VAT at 20% is payable on counsels fees and the advertising fee.
- Bankruptcy petition: our fees will be approximately £3,000 plus VAT at 20%. There will also be disbursements including a court fee (£332), a petition deposit (£1,500), counsels fee (approximately £500 – 750 plus VAT), process servers fee (£115 plus VAT) and an advertising fee (approximately £100 plus VAT). The court fee and official receiver deposit do not attract VAT but VAT at 20% is payable on counsels fees, the process servers fee and the advertising fee.
The above fees are based on there only being one hearing for the relevant petition. If there is more than one hearing then an additional quote can be provided for both our fees and counsels fees.
The above fee estimate includes liaising with you in relation to the preparation of the winding up petition or bankruptcy petition, drafting, filing and serving the relevant petition, filing the certificate of service, advertising the petition (for a winding-up petition), instructing a barrister and preparing for the hearing. The fee does not include any work done in the event that the petition is contested and we have to engage with the debtor or their representatives in relation to the debt, including (but not limited to) correspondence with them or reviewing any witness statements filed and served opposing the petition. In these circumstances we will discuss what further work is required and provide you with a revised costs estimate.
The time it takes for the Court to hear a winding up or bankruptcy petition depends on their case load but it will be approximately 8 weeks from the date of filing to the court hearing.
Court Recovery
This is the appropriate route if a debt is disputed or may be disputed.
Our fees depend upon a number of factors including the complexity and value of your claim. Set out below are a range of fees for if the matter proceeds to court but is not defended. We discuss each case and consider a bespoke fee.
| Debt Value | Court Fee | Our Fee | Total |
|---|---|---|---|
| Up to £5,000 | £35 to £205 (dependent on claim value) | £1,000 to £2,000 plus VAT (20%) | £1,035 to £2,205 plus VAT on our fees |
| £5,001 to £10,000 | £455 | £2,500 to £4,000 plus VAT (20%) | £2,955 to £4,455 plus VAT on our fees |
| £10,001 to £50,000 | 5% of claim value | £5,000 to £10,000 plus VAT (20%) | £5,500 to £12,500 plus VAT on our fees |
| £50,001 to £100,000 | 5% of claim value | Up to £20,000 plus VAT (20%) | Up to £25,000 plus VAT on our fees |
- VAT at 20% is charged on all of our professional fees.
- VAT is not charged on Court fees.
- Interest and compensation may take the debt into a higher banding, with a higher cost.
- The costs quoted above do not include the costs of enforcement, such as the bailiff, is needed to collect your debt. A guide to enforcement costs is set out below.
Our fee includes:
- Reviewing documentation and taking instructions.
- Undertaking searches if necessary.
- Sending a letter before action (including sending you a draft first).
- Receiving payment and passing on to 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.
- After Judgment in default is received, writing to the debtor to demand payment.
- If payment is not received within 14 days, providing you with advice on next steps to enforce.
If the other party disputes your claim at any point or the debtor files a defence to the claim, we would discuss what further work is needed and provide you with a revised costs estimate if necessary. It would not be included in the above fees.
Depending upon the value of your claim you may be able to recover some of your fees from the debtor if you are successful.
It can take some months from instructions to recovery of payment from the debtor depending on whether the debtor makes payment (and at what stage) and 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.
How to enforce a Judgment
After Judgment if a debtor fails to make payment there are various options available for enforcement action including those set out below. A guide to our legal fees is set out below. Again, the fee will depend upon the complexity of the case and the value of the Judgment which you are seeking to enforce.
| Action | Fee (all plus VAT at 20%) |
|---|---|
| Uncontested Charging Order | £500 – £750 |
| Statutory Demand (after Judgment) | See above |
| Bankruptcy Petition | See above |
| Winding Up Petition | See above |
Disbursements
These are the costs which are payable to third parties in relation to your claim, such as Court fees or HMLR fees. The disbursements which are applicable to you will depend upon the individual circumstances of your case.
| Disbursement | Cost | VAT (20%) |
|---|---|---|
| Tracing Agent Fees | From £75 | VAT |
| Process Server Fees | From £115 | VAT |
| High Court Enforcement Officer Abortive Fee | £90 | VAT |
| Official Receiver’s fee | See above | No VAT |
| Petition deposit | See above | No VAT |
| Barrister Fees | From £250 to £2,000 (dependent on nature and complexity of instruction) | VAT |
| Office Copy Search Fee | £3 per document | No VAT |
| Affidavit Fee | £5 plus £2 per exhibit | No VAT |
We have extensive experience in this area and look forward to assisting you. Please contact us at [email protected] or on +44(0)2079526216 for a quote.