Debt Recovery

Cash flow is essential to every successful business and it is therefore important to take steps to recover outstanding debts as soon as possible.

We provide a transparent fixed fee structure so that you are aware of costs at each stage of the process. In some circumstances, your costs can be recovered from the debtor.

Whatever the amount outstanding, we can provide you with the necessary advice and action the works required to obtain your outstanding debts.

Our Debt Recovery department consists of qualified litigators so you can rest assured that the advice you receive will keep you one step ahead.

 

Debt recovery: Range of fixed fees for businesses with undisputed debts up to £100,000

(Please note that if you require advice on insolvency please contact the Litigation & Dispute Resolution Team)

Matthew Hewitt, Solicitor, handles debt recovery and litigation claims at Bradley and Jefferies. Matthew is a solicitor with great experience in both the public and private sector. More information can be found on the our people page.

These costs apply to Claims subject to the jurisdiction of England and Wales only, and follow a stage by stage process. The charges apply cumulatively to each stage and a payment on account of our costs is required before each stage begins.

Stage A. Pre action work

To prepare and send a letter before action for an undisputed invoice – £170.00 plus 20% VAT
This includes initial debtor enquires such as insolvency checks, Companies House searches etc.
HM Land Registry searches are additional per search – £3.00

For business debts we will claim the Late Payment Fee and interest under the Late Payment of Commercial Debts (Interest) Act 1998 at 8% above the Bank of England base rate or the rate set out in your contract. Your contract may entitle you to recover your legal fees and we will endeavour to do so where appropriate.

Response time to a letter before action:
Individual and sole traders under the Pre-Action Debt Protocol – 30 days
Business (companies, partnerships) – 14 days

If the debt is disputed to proceed further you will need to discuss the matter with the Litigation & Dispute Resolution Team.

A payment on account of £65 plus 20% VAT and any payments for searches is required before work is undertaken in connection with this stage.

Stage B. Issuing a claim

If the claim is not paid the next step is to issue the claim which we try to do within 72 hours of receiving your full instructions. Interest and the Late Payment fee (Up to £999.99 - £40    £1,000 to £9,999.99 - £70£10,000 or more - £100)  may take your debt into a higher band of issue fees. The Fixed costs are costs that the Court allows you to claim from the debtor for the legal advice you have taken. They are NOT the costs you pay us. The VAT element of our fee cannot be reclaimed from your debtor if you are VAT registered.

A payment on account of the applicable Issue fee (via court or online) and Our fee plus 20% VAT is required before work is undertaken in connection with this stage.

Value of your claim	Court issued claim	Fixed costs	Our fee (plus 20% VAT)
Up to £300	£35	£50	£220
£300+	£50	£50	£220
£500+	£70	£70	£220
£1000+	£80	£80	£260
£1500+	£115	£80	£260
£3000+	£205	£80	£300
£5000+	£455	£100	£320
£10000+	5% of claim	£100	£400

Once the claim is served on the debtor, they have 14 days to respond.
If the debtor is a business and the claim is paid in full our costs are the greater of either :-
1) Fixed costs shown above, the Late Payment fee and Interest plus 20% VAT; or
2) Our fee shown above.

If the debtor files a Defence to the claim, to proceed further you will need to discuss the matter with the Litigation & Dispute Resolution Team.

Stage C. Entering Judgment

If the debtor does not reply to, or pay, the claim then, following your instructions, we will apply to the Court for judgment against the debtor. We are allowed to apply for certain fixed costs on your behalf. We aim to apply for judgment within 48 hours of receiving those instructions.

	Fixed Costs added when the Judgment is up to £5000	Fixed Costs added when the Judgment exceeds £5,000	Our fee (Plus 20% VAT)
Judgment where no response at all	£22.00	£30.00	£50.00
Judgment where an acknowledgement of service was been filed but no defence	£25.00	£35.00	£70.00
Judgment on Admission (where the debtor has made an offer which you have accepted)	£40.00	£55.00	£70.00
Judgment on Admission (where the debtor makes an offer which you refuse and the Court then decides the amount to be paid)	£55.00	£70.00	£80.00

 

 

 

 

 

 

 

A payment on account of Our fee plus 20% VAT is required before work is undertaken in connection with this stage.

 

Stage D. Enforcing the Judgment

Once we have received the sealed Judgment from the Court then we can enforce it.
We initially write to the debtor to warn them that unless the Judgment is paid within 7 days we will enforce it at a cost of £65.00 plus 20% VAT
 

If the judgment is against a business and is paid in full our costs are the greater of either:-
1) Fixed costs shown above in Stages B & C, the Late Payment fee and Interest plus 20% VAT; or
2) Our fee shown above in both Stages B & C.

If the Judgment is not paid, you have to consider how to enforce it. Much will depend on what you know of the debtor and their financial circumstances. You will need to discuss the various enforcement methods and their costs with the Litigation & Dispute Resolution Team.