Debt Recovery

The Dispute Resolution Team specialises in dispute resolution and litigation. This often involves advising on recovery of unpaid debts. Our lawyers have between 2 and 25 years’ experience in this area of practice and can advise you on the most appropriate procedures to seek to recover money owed to you. The team is led by Clare Richards, a qualified solicitor and partner. Other members of the team include Sian Mullane and Flavia-Maria Manda.

Key Stages and Timescales

For straightforward uncontested debt collection the key stages include:

• Taking instructions and reviewing the documentation;
• Sending a letter before action to the debtor;
• Where payment is made following the letter before action, receiving payment;
• Where the debt is not paid following the letter before action, drafting and issuing proceedings in the County Court;
• Receipt of judgment issued by the Court; and
• Enforcement (necessary if the debtor still does not pay after judgment has been issued)

Judgment can normally be obtained within 6-7 weeks of instruction in straightforward, uncontested cases.

Where the debt is contested by the debtor they will file a defence following which the court will issue directions setting out the procedure and a timetable for the progression of the case. The directions and timescale will depend on the nature and amount of the dispute.

Fees

The information below relates to uncontested debt recovery up to the value of £100,000.

In all cases we will provide you with a detailed estimate of the likely cost of proceedings in advance together with a review of the balance of risk involved. Costs are based on our current hourly rates of £250-£450 per hour plus VAT*. Fixed fee arrangements may be available.

Uncontested debts up to £10,000

Whilst there is no hard and fast rule, in our experience debts less than £10,000, if uncontested, can usually be recovered for in the region of £1,500 plus VAT* and disbursements (see below) assuming one attempt at enforcement.

Uncontested debts exceeding £10,000 (up to £100,000)

For debts above £10,000 generally the costs will be higher on average because of the way the court deals with matters of higher value. Where no defence is filed, pursuing a matter to judgment with one attempt at enforcement is likely to cost £3,500 to £4,500 plus VAT* and disbursements (see below).

Bespoke fees and expenses will be provided in relation to each instruction. In all cases we will discuss with you the potential for recovering some or all of the costs and disbursements from the debtor and the extent to which this is possible will depend on the value of the claim and the type of action pursued.

We reserve the right to charge according to the complexity/specialism and speed with which the work is expected to be done and that may lead to an enhancement of our normal hourly rates. If we intend to charge an uplift on our normal hourly rate we will always discuss this with you.

The above fee information does not apply to contested claims which will be charged on a time spent basis at the applicable hourly rate. Full details can be provided on request.

Disbursements

In addition to our legal costs, other costs related to your matter may be payable to third parties. These are known as disbursements or expenses. We will normally handle the payment of these on your behalf to ensure a smoother process. Typical disbursements include:

• Court issue and hearing fees
• Fees on entry of judgment
• Enforcement fees

These are subject to change most years, but details of the current rates are available here: Court fees

*Our costs and some disbursements/expenses (where indicated) are subject to VAT at the current rate of 20%. 

Exclusions

The pricing information above does not include recovery by way of a statutory demand and a winding up/bankruptcy petition. The fees and expenses involved in pursuing this option are generally higher. If, following an initial consultation, we believe that this is the most appropriate course of action for you we will provide an estimate tailored to your individual circumstances.

Contact Clare Richards for more information.