Debt Recovery Costs
Business to Business Debt Recovery Service
These costs only apply to our debt recovery service for businesses seeking to recover unpaid invoice debts up to £100,000 that are not disputed and no enforcement is necessary.
If your claim is disputed or defended at any time we will discuss the work required and provide either another fixed fee or our hourly rate charges.
Recovering unpaid invoices.
When you are trying to recover unpaid and undisputed invoices it is important that you know how your legal fees are calculated and what costs you might incur. We offer a fixed fee service so that recovering paid invoices is cost effective for you.
You will see that we refer to “Disbursements” these are costs related to your matter that are payable to third parties, such as court fees and other expenses. We handle the payment of the disbursements on your behalf to ensure a smoother process.
Our Fixed Fees
Our fixed fee charges to businesses seeking to recover undisputed invoices up to £100,000 from other businesses are:
Debt value Our fee (incl. VAT)
Up to £10,000 £360
£10,001 – £100,000 £600
The service includes:
• taking instructions and reviewing documentation
• a bankruptcy or insolvency search
• sending a letter of claim
• receiving payment,
• if the debt is not paid, drafting and issuing a claim form
• where no acknowledgement of service or defence is received, entering judgment in default
• If payment of the judgement is not received within 14 days, providing you with advice on next steps and likely costs
If a claim form is issued you will have to pay a court fee (usually 5% of the sum claimed, up to a maximum of £10,000) and search fees. The VAT element of our fee cannot be reclaimed from the debtor.
The service does not include:
• negotiation with the debtor
• dealing with a disputed claim or counter claim following the service of a defence
• any enforcement action
It usually takes eight weeks from receipt of instructions to entering judgment.
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.
Frequently asked Questions
1. How long do I need to allow the debtor to pay before I issue legal proceedings?
We have a high success rate in recovering unpaid invoices without the need to issue legal proceedings. However you must allow at least 14 days for the debtor to pay before you issue proceedings.
2. Can I charge interest on the debt?
Yes in most circumstances you can charge interest under the Late Payment of Commercial Debt Act. This is added to the debt. We will advise you in relation to this at the time of instruction.
3. How long does it take to obtain judgment?
It usually take eight weeks from receipt of instructions to obtaining judgement.
4. What happens if the debt is defended?
If the matter becomes disputed or enforcement action is needed then we will contact you to agree the next steps and how we charge for defended cases.
Our Debt Recovery Team
When you instruct us you can rest assured that you are in safe and experienced hands and will receive an excellent level of service. Our Debt Recovery team has over 120 years combined experience in dealing with all aspects of debt recovery and litigation.
The Debt Recovery team are managed by Andrew Wand a partner of the firm. Please click on the Meet the Team box on the left to find out more about our Debt Recovery Team.
Please contact us so that we can explain how we work and the service we offer.