Debt Recovery

Court Claims – Debts up to £100,000

The process and costs below will apply where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not needed.

If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which could be on a fixed fee (for example, if a one-off letter is required), or an hourly rate if more extensive work is needed.

Please note our fees for each stage will vary depending on complexity* but are provided as average fees. We will always provide a fee estimate at the beginning of a new matter and the exact costs will reflect time spent on a matter, so please contact us for a more precise quote.

Stage 1: Consultation and review of documents: we will meet with you to take instructions, go through documents and understand the background, so we can explain how we can assist you.

Average fee between £265 to £1,000 plus VAT. Average timescale: 1-2 weeks from instruction.

Stage 2: Contacting the debtor to establish liability. If appropriate, considering alternative dispute resolution. If not, preparing a letter before claim as required by the court rules.

Average fee between £1,000 to £2,000 plus VAT. Average timescale: 3-6 weeks from instruction.

Stage 3: Preparing and issuing a court claim if the debtor fails to pay or respond.

Average fee between £1,000 to £2,500 plus VAT.

Average timescale: 4 – 10 weeks from service of letter before claim.

Stage 4: Taking all steps up to (but not including) trial – this may include: where no Acknowledgment of Service or Defence is received, applying to the court to enter judgement in default. Where defended, reviewing the debtor’s court documents and advising you further, complying with court directions, preparing for any case management/directions hearings; dealing with disclosure, witness statements, trial bundles and corresponding with the debtor or its representatives.

Average fee between £5,000 to £15,000 plus VAT

Average timescale: 10 – 25 weeks from issue.

Stage 5: Attending trial with a barrister, if required.

Average fee between £1,000 to £3,500 plus VAT

Average timescale: 25 – 35 weeks from issue, depending on the court’s timetable.

Stage 6: Enforcement – much will depend on what the court finds at the trial hearing and how the debtor responds. If the debtor fails to comply with the court order, we will discuss various methods of enforcement and fees for them separately.

Matters usually take between 4 to 10 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. If a claim becomes necessary, the time scale will be affected by the court timetable and whether or not the debtor pays promptly on receipt of a judgement in default. If enforcement action is needed, the matter will take longer to resolve.

For all claims, please note:

• The VAT element of our fee cannot be reclaimed from your debtor.
• Interest and compensation may take the debt into a higher track banding, which will mean a higher cost.
• The costs quoted above do not include disbursements, such as court issue fees, hearing fees and barrister fees.
• Barrister fees vary depending on seniority but are on average, between £1,500 to £8,000 per day for attendance at hearings. They may also charge separately for preparation and travel costs.

       
  *Complexity can include:

• Parties being domiciled outside the jurisdiction of England and Wales
• Litigants in person – where a party acts without legal representation
• Volume of documents and translation of documents
• Preliminary / interim applications / amendments to existing court claims; and,
• Above average number of witnesses – as this will require additional preparatory work and a longer trial hearing.