Pricing for Debt Recovery
When providing costs for debt recovery, it is common for firms to provide a fixed fee based on the value of the debt to recover.
Our fees are mainly calculated using an hourly rate, which is set according to our fee earners’ knowledge and experience. In some instances, we are able to agree a fixed fee with you so that your matter can be dealt with in the most cost-effective manner. Our current hourly rates range from £150 to £373 plus VAT. (Depending on the fee earners grade and hourly rate)
All figures in relation to hourly rates exclude VAT and disbursements unless specifically stated
The exact number of hours it will take depends on the circumstances in your case. Such as:
1. The amount of supporting evidence that we need to consider
2. Which language(s) you speak
3. Whether you there are co claimant’s/defendants.
If you can provide sufficient evidence at our first meeting and this is likely to save cost and time.
Example template (Range of fixed fees) for a business-to-business debt that is undisputed
| Debt Value | Court Fee | Our Fee (excl. VAT/Disbursements) | Total |
|---|---|---|---|
|
Up to £5000 |
£205 (or as applicable) |
£2000 |
£2400 plus £205 |
|
£5000 - £10,000 |
£455 (or as applicable) |
£5000 |
£5000 plus £455 |
|
£10,000.01 - £200,000 |
5% Value of the claim (or as applicable) |
35% of the value of the claim |
Court fee £500 - (Provided that there are no unusual/complex circumstances in which case we have to agree a higher percentage)£10,000; and
In addition, 35% of the claim towards our fees |
|
More than £200,000 |
£10,000 |
25% of the value of the claim |
Court fee of £10,000 plus 25% of the value of claim towards solicitors’ fees (Provided that there are no unusual/complex circumstances in which case we have to agree a higher percentage) |
Court Claims
These costs 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 (e.g. if a one off letter is required), or an hourly rate if more extensive work is needed.
Anyone wishing to proceed with a claim should note that:
1. The VAT element of our fee cannot be reclaimed from your debtor.
2. Interest and compensation may take the debt into a higher banding, with a higher cost.
3. The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
Our fee includes:
1. Taking your instructions and reviewing documentation
2. Undertaking appropriate searches
Sending a letter before action
3. Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
4. Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
5. When Judgement in default in received, write to the other side to request payment
6. If payment is not received within X days, providing you with advice on next steps and likely costs
Matters usually take 2-6 months 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. This is on the basis that the other side pays promptly on receipt of Judgement in default. If enforcement action is needed, the matter will take longer to resolve.
Disclaimer:
Any materials provided by Law & Co Solicitors on this website are strictly for informational purposes only which does not, and cannot, constitute a legal advice. The use of this site does not create a lawyer-client relationship. Additionally, initiating a chat, email or other communication with our representatives through this site does not create solicitor/client relationship and information provided will not be considered confidential or privileged.
Guideline Hourly Rates:
VAT
Above rates are exclusive of VAT this is charged at 20% (if applicable)
Fee earner category and applicable rates (per hour):
Solicitor with over 8 years experience: £373
Partner, Solicitors and legal executives with over 4 years’ experience: £289
Solicitors with 3 years + experience: £260
Solicitors with less than 3 years experience: £230
Trainees and paralegal: £ 150
All fee earning members are subject to supervision
Our fees mentioned above are for one application only and does not include disbursements which may be incurred or become necessary. Furthermore, this does not include home office fees, IHS, court fees, application fees, third party fees and any other necessary expenses. In addition, if your matter proceeds further and becomes more complex then we may revise and increase our quote.