Debt Recovery - Litigation

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:

Court fees are not included in the above quotation. A list of Court fees in civil claims (Form EX50) can be found on https://hmctsformfinder.justice.gov.uk/HMCTS/FormFinder.do
If a company search is required, the fee for this disbursement is £50 plus VAT.
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 only apply where the debtor is a limited company or a firm (partnership), not an individual. If the debtor is an individual, please contact us for a quotation.
The costs quoted above are not for matters which are disputed and where enforcement action, such as the bailiff, is needed to collect your debt. Our fee includes:
Taking your instructions and reviewing limited documentation
Sending a letter before action
Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing a claim form
Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgment in default
When Judgment in default is received, writing to the other side to request payment
If payment is not received within X days, providing you with advice on next steps and likely costs Our fee does not include:
Disbursements are costs related to your matter that are payable to third parties, such as court fees and company search fees.

Letters before action sent to companies in the U.K. usually require the debtor to pay within 14 days. If the debt is not paid within this time, subject to your instructions, we will start legal proceedings to recover your money. We may request clarification or further evidence if not already sent in order to draft the Claim Form. It is advisable to undertake a company search prior to issuing court proceedings to try to establish if the company is likely to still be solvent and to have the means to pay.

Timescales

Once court proceedings have been issued, the court will send a copy of the claim to the debtor by first class post. A debtor has 14 days from the date of service in which to file a defence or acknowledgement of service. After the 14 day period has expired, we can apply to the court to enter Judgment in default provided that the debtor has not filed an acknowledgement or a defence. It usually takes the court about 10 working days to enter judgment following receipt of a request to enter judgment but it does depend on the court. Once judgment has been obtained, we will write to the debtor to request payment. If the debtor does not pay, we will advise you on enforcement action and the likely cost involved.

Your matter will be dealt with by our litigation solicitor, Mr Abdul Halim, who was called to the bar before he qualified as a solicitor in 2007 and has several years experience of dealing with debt claims.

Debt Recovery - Litigation

We are required to give some indication of what these costs might be, but with contested debts this is extremely difficult since there are so many possible variations.

We do not undertake this work on a fixed fee basis although we can agree a payment fee arrangement. Our time will be charged on an hourly basis with rates ranging from below £125 per hour Plus VAT for trainee solicitors and up to £250 per hour plus VAT for senior solicitors.

Any expenses we incur on your behalf – for example, court fees, bailiffs’ charges or the fees charged by barristers or accountants assisting with the claim – are known as disbursements and are charged in addition to our fees, we may ask for these to be covered ahead of the work being done by us.

If you wish to know more about the costs that might apply to your claim and to discuss your claim in general please telephone our Northwood Office on 01923 273000 whom will be happy to discuss this with you.