Recovering a business debt from another business can often prove unsuccessful without the strength of the law behind your initial attempts. Before your matter can reach Court, there is a requirement to comply with the Pre-Action Protocol that gives the Debtor plenty of notice of your intended legal actions.
You can count on us to keep your cashflow healthy by proactively chasing debts and taking the necessary legal action where appropriate for recovery of the same.
Our Debt Recovery team stems from our Litigation team covering a diverse background in Court proceedings and the necessary pre-requisites. The team comprises Trainee Solicitors, Para Legals and support staff supervised by our Principal Solicitor having in excess of 30 years post qualification experience.
We are Price Transparent
This illustration assumes the following:
- The debt is in relation to an unpaid invoice; and
- The invoice is not disputed; and/or
- The Claim is undefended; and
- Enforcement Action will not be required.
- Review your contract under which the debt is due; and
- Advise you as to the strength of your Claim; and
- Comply with the Pre-Action Protocol by serving on the Debtor a Letter of Claim; and
- Prepare and issue the Claim Form to include interest calculations if applicable; and
- Apply to the Court to enter into Judgement in Default if no Acknowledgement of Service or Defence is received; and
- Upon receipt of Judgement in Default, write to the Debtor on your behalf to collect payment; and
- Account to you for all payments received and handle the electronic funds transmission.
Where the invoice and/or Claim is disputed/defended in part or in full, we will advise you of further likely costs of preparing a trial bundle as this will vary depending on the nature of the defence.
Where Judgement has been entered in Default and the Debtor has failed to pay under the Judgement, we will advise you of what further steps you can take and the likely costs of doing so.
Total Fee Estimate
Where the assumptions above are met, we offer a fixed fee of £1,000 + VAT (total £1,200.00) on all instructions to recover debt up to £99,999.99, however as the Court Fees vary depending on the value of your claim, you can identify the total expenses you are likely to incur from the table below:
|Debt Value||Court Fee||Legal Fees (incl. VAT)||Total|
|£3,000.01 – £5,000.00||£185.00||£1,200.00||£1,385.00|
|£5,000.01 – £10,000.00||£410.00||£1,200.00||£1,610.00|
|£10,000.01 – £99,999.99||4.5% of the value of claim||£1,200.00||£varies|
|£100,000.00 – £200,000.00||5.0% of the value of claim||£tbc||£tbc|
If you have multiple debtors owing less than £3,000.00 that need chasing on a recurring basis, e.g. a you are a local authority or private car park operator, we can take instructions for bulk claims with a special fee arrangement tailored specifically to you. Please contact us for further information.
We have seen debts recovered by our Firm paid up in as little as 2 weeks where the matter does not have to proceed to Court, however in the event that no response is received from the Debtor this timescale for the recovery can be significantly longer. The processing speed of the Court together with statutory waiting periods can see your matter take up to 12 weeks or more to resolve. If Enforcement Action is needed, this could take even longer and we will advise you more specifically as your case progresses.