Business Debt Recovery Fees

Scope of services

The costs and pricing set below apply where your court 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 our charges and costs associated for the revised/additional work if necessary, which could be on a fixed fee (e.g. if a one-off letter is required), or a different hourly rate if more extensive work is needed.

The scope of our fees include the following work:

  • taking your instructions and reviewing documentation;
  • undertaking appropriate searches;
  • sending a letter before action;
  • receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim;
  • where no Acknowledgement of Service or Defence is received, applying to the court to enter Judgement in default;
  • when Judgement in default is received, write to the other side to request payment;
  • if payment is not received within 14 days, providing you with advice on next steps and likely costs.

Pricing

Fees can range as follows for the relevant debt values:

DEBT VALUE COURT FEE* OUR FEE (EXCL. VAT) PER HOUR TOTAL
Up to £5,000 £35 – £205 £150 – £250 £185 – £455
£5,001–£10,000 £455 £250 £705
£10,001—£100,000 5% value of the claim £300 £850 – £2,800

*For the most up to date Court fees for the associated debt claim please click here.

Anyone wishing to proceed with a claim should note that:

  • the VAT element of our fee cannot be reclaimed from your debtor;
  • interest and compensation may take the debt into a higher banding, with a higher cost;
  • the costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.

The pricing above are indicative only and are depend on the complexity of the claim. If a claim becomes disputed we will of course advise you of the likely costs that will be incurred and agree substantive costs with you before they are incurred.  However, defended cases are difficult to predict and even for claims worth less than £50,000, the costs are likely to be in the region of £25,000 – £40,000.

Vat

Unless stated otherwise above, all prices are stated excluding VAT and VAT will be charged at the prevailing rate (currently 20% in the UK).

Timescales

Matters usually take 14 days to 4 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.

This is just an estimate and we will of course be able to give you a more accurate timescale once we have more information and as the matter progresses.

 

Complaints procedure

Our Complaints Procedure can be located by client here.  

 

Disclaimer

We recommend that you contact us on 0333 772 7736 or at info@360lawservices.com before relying on this information or taking any course of action (or omitting to take any action) that has or may have legal implications. If you rely on this information without obtaining legal advice you do so at your own risk.

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