WE ARE REQUIRED BY THE SRA TO PROVIDE THE FOLLOWING COSTS INFORMATION IN RELATION THE SPECIFIC SERVICES OUTLINED BELOW.
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For debts under £100,000, we offer a tailored low value debt recovery service.
This service is carried out by our Litigation & Dispute Resolution Team, which is well versed in recovering disputed and undisputed debts.
We offer flexibility as to how you pay for our services. We can agree fixed fees or, if you prefer, we can charge on an hourly basis (see below our charge out rates).
Typically, for recovery of an undisputed debt for a value under £100,000 we will charge in the region of £2,500 to £15,000 (plus VAT) (excluding enforcement and any work post-winding up/bankruptcy).
The length of time it takes to recover an undisputed debt depends, in part, on the attitude that the debtor takes to paying back the debt. However, typically, it will take:
If you obtain a judgment in your favour, the debtor will then have a short period (usually 14 days) within which to pay the debt. If they don’t do so, you would be entitled to take enforcement action (e.g. through taking control of the debtor’s goods, a charging order over the debtor’s assets, or an attachment of earnings order).
If an order is made that a debtor be wound up/made bankrupt, the debtor’s assets will be collected by a liquidator/trustee in bankruptcy and distributed between the creditors. This can be a time-consuming process and, typically, creditors will only recover a percentage of the debt that they are owned. Sometimes, a debtor will not recover any money at all.
Recovery of a disputed debt may cost more than recovery of an undisputed debt, but we will always seek to ensure our fees are commensurate with the value you are seeking to recover. We do this by ensuring that the bulk of debt recovery work is carried out by our more junior lawyers, under the careful supervision of our more senior lawyers and partners.
Please note, if you succeed in recovering your debt, you will typically be entitled to recover a proportion of your legal fees and disbursements from the debtor.
Please see below a non-exhaustive list of the disbursements you may need to pay, in order to recover a debt:
For undisputed debts, the best first step will often be to serve a statutory demand on the debtor.
We will usually instruct a process server to serve the statutory demand. Typically, process server’s fees will be in the region of £100-200 plus VAT.
|Value of debt (£)||Fee (£)|
|300 to 500||50|
|500 to 1,000||70|
|1,000 to 1,500||80|
|1,500 to 3,000||115|
|3,000 to 5,000||205|
|5,000 to 10,000||455|
|10,000 to 200,000||5% of the value of the claim|
|Track||Value (£)||Fee (£)|
|Small Claims||Under 300||25|
|300 to 500||55|
|500 to 1,000||80|
|1,000 to 1,500||115|
|1,500 to 3,000||170|
|Fast Track||Any (typically 10,000 to 25,000)||545|
|Multi Track||Any (typically over 25,000)||1,090|
Depending on the value of the debt (and whether it is disputed or not), we may wish to instruct Counsel (i.e. a barrister) on your behalf (and with your approval) to assist with tasks such as drafting pleadings and conducting advocacy in the courtroom.
Counsel’s fees vary. However, we will always seek to ensure that Counsel’s fees are commensurate with the value you are seeking to recover.
Please note, VAT would be payable on Counsel’s fees.
The hourly rates we charge for debt recovery work (assuming that no fixed-fee is agreed) range between £125 and £450 per hour (plus VAT and disbursements), depending on the level of experience of the fee earner dealing with the work.