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Employment Law

Debt Recovery Fees

Our colleagues at Streathers Daynes Smith are highly experienced in debt recovery. We have assisted a range of individual, sole trader and commercial creditors, and have expertise in relation to invoice debt recovery, loan recovery and other commercial debt recovery services. 

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The cost of our services will often depend on the nature of the debt and the debtor, and whether the debtor disputes your claim for payment. 

This note covers: 

  • our services and fees for undisputed debt recovery work 
  • our services and fees for disputed debt claims 
  • who in our team can assist you 
  • general points to be aware of debt recovery claims 

Undisputed debts 

We offer the following services when you are a business and your claim relates to a debt which is undisputed, where no Court proceedings or enforcement action (for example, instructing a bailiff to recover the debt) have started and where the debt is equal to or less than £100,000. 

Services included 

  • Taking your instructions and review of documentation 
  • Undertaking appropriate searches (such as company and credit searches regarding the debtor, and instructing tracing searches if necessary) 
  • Preparing and sending an appropriate letter before claim setting out your claim to the debtor 

Fees 

We charge on an hourly rate basis for our costs and depending on the complexity our costs (excluding disbursements) though we would provide you with a bespoke estimate tailored to your matter.  The costs of any third party services, such as specialist counsel and process servers, would be charged in addition to our fees, as external disbursements of the firm. 

 We have a highly-skilled and qualified team. They are, and their hourly rates are:  

  • Satbir Singh Choudry, Partner- £475 plus VAT (over 8 years qualified) 
  • Danielle Woodhouse, Senior Associate- £375  plus VAT (over 8 years qualified) 
  • Nick Waldron, Associate Solicitor- £325 plus VAT (over  2 years qualified) 
  • Andrew Roth, Associate Solicitor- £325 plus VAT (over 1 year qualified) 
  • Elisha Luckman, Trainee solicitor- £215 plus  VAT 
  • Paralegals, current hourly rate: £175 plus  VAT 

Our hourly rates are reviewed periodically and VAT is charged at the prevailing rate (currently 20%). 

We charge a compliance fee per instruction which can cost anywhere between £25 – £50 plus  VAT depending on the number of parties to check and complexity of work involved. 

Estimated Legal Costs 

The total cost will depend on the complexity of the matter and whether it concludes swifty with minimal work or is the matter is required to proceed to trial.  

Matter TypeEstimated Fees
Undisputed debt£1,500 to £15,000 + VAT (VAT-inclusive: £1,800 to £18,000)

Matters at the lower end of the fee range typically involve a straightforward debt recovery process, where there is clear evidence of the debt, the debtor can be easily contacted, there is limited correspondence, and the matter is resolved quickly with minimal legal work. 

Matters at the higher end of the fee range typically involve more extensive work, such as reviewing large volumes of documentation, undertaking tracing or investigatory work, dealing with multiple parties, preparing detailed court documents, engaging in substantial correspondence, obtaining judgment, and advising on enforcement options where payment is not made. 

We will provide you with a bespoke estimate tailored to your matter.  The costs of any third party services, such as specialist counsel and process servers, would be charged in addition to our fees, as external disbursements of the firm. 

 Our fee includes: 

  • Taking your instructions and reviewing documentation 
  • Undertaking appropriate searches 
  • Sending a letter before claim 
  • Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim 
  • Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgment in Default 
  • When Judgment in Default in received, write to the other side to request payment 
  • If payment is not received normally within 14 days, providing you with advice on next steps, enforcement options and likely costs 

Please note that 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. 

 

 How long will this take? 

In a debt instruction, matters might take between 2 – 8 weeks from receipt of your instructions to receipt of payment from the debtor, in terms of the initial work in investigating and preparing pre-action correspondence. This may vary substantially if it is difficult to trace the debtor, or we need to take more detailed instructions from you in complex cases. If a Court claim is needed, the process would be longer and depend on the Court administration and listings. If enforcement action is needed, the matter will inevitably take longer to resolve. 

What will happen if the debt is disputed? 

In that case, your debt recovery claim will become disputed, and, in that eventuality, service and price information is set out in the next section. 

Disputed debt claims 

If the debtor raises defences to try to avoid paying the debt in response to the letter before claim we write, we will discuss with you the further work required and, if necessary, provide you with information about our costs of contested debt recovery proceedings. 

Services included 

You will need additional services at that stage, including: 

  • advice on funding litigation proceedings at court, the risk of being ordered to pay the debtor’s costs if your claim fails and the availability of insurance and third party funding 
  • drafting proceedings, possibly with the assistance of specialist counsel 
  • issuing a claim in court 
  • managing and running a court claim to trial 
  • attending trial and representing you in court 
  • enforcement work to recover sums made at any order resulting from trial 

Fees 

We charge on an hourly rate basis for our costs and depending on the complexity of your matter and the length of time it will take to resolve your matter. 

We charge on an hourly rate basis for our costs and depending on the complexity our costs (excluding disbursements) though we would provide you with a bespoke estimate tailored to your matter.  The costs of any third party services, such as specialist counsel and process servers, would be charged in addition to our fees, as external disbursements of the firm. 

 Our current hourly rates are: We have highly-skilled and qualified staff. They include: 

  • Satbir Singh Choudry, Partner- £475 plus VAT (over 8 years qualified) 
  • Danielle Woodhouse, Senior Associate- £375  plus VAT (over 8 years qualified) 
  • Nick Waldron, Associate Solicitor- £325 plus VAT (over  2 years qualified) 
  • Andrew Roth, Associate Solicitor- £325 plus VAT (over 1 year qualified) 
  • Elisha Luckman, Trainee solicitor- £215 plus  VAT 
  • Paralegals, current hourly rate: £175 plus  VAT 

Estimated Legal Costs 

The total cost will depend on the complexity of the matter and whether it concludes swifty with minimal work or is the matter is required to proceed to trial.  

Matter TypeEstimated Fees
Disputed debt£5,000 to £60,000 + VAT (VAT-inclusive: £1,800 to £72,000

Matters at the lower end of the fee range typically involve a limited dispute, a small volume of documentation, straightforward legal issues and an early resolution through negotiation, settlement or court directions. 

Matters at the higher end of the fee range typically involve complex factual or legal issues, substantial documentation, multiple witnesses or parties, expert evidence, extensive correspondence, interim applications, preparation for trial and attendance at a final hearing. 

 We would provide you with a bespoke estimate tailored to your matter.  The costs of any third party services, such as specialist counsel and process servers, would be charged in addition to our fees as external disbursements of the firm. 

The process of contested litigation will incur additional costs such as Counsel’s fees and Court fees: 

  • We will charge on the basis of our hourly rates (see below), plus disbursements such as counsel, process servers and the court’s fees 
  • The court’s fee to issue a claim, which for a claim exceeding £10,000 will be 5% of the value of the claim up to a maximum of £10,000. The court also charges hearing fees if there is a trial 
  • The costs of specialist counsel, if appropriate. These vary and we would agree those with you before proceeding with an instruction 
  • Instructing process servers to find and serve Court documents on debtors if necessary 
  • The costs of enforcement agents to recover sums under order as a result of a trial or other hearing 

We will always seek to ensure our fees are proportionate to the debt you seek to recover. 

How long do disputed debt claims take? 

If court action is required, then the matter will take longer to resolve, the timeframe is largely dependent on the Court’s timetable and availability but may take between 6 and 18 months. 

Who will handle my case? 

We have highly-skilled and qualified staff. They include: 

  • Satbir Singh Choudry, Partner (over 8 years qualified) 
  • Danielle Woodhouse, Senior Associate (over 8 years qualified) 
  • Nick Waldron, Associate Solicitor (over  2 years qualified) 
  • Andrew Roth, Associate Solicitor (over 1 year qualified) 
  • Elisha Luckman, Trainee solicitor 
  • Paralegals, 

Points to be aware of in respect of recovering your legal costs 

  • If your debt is for a figure below £10,000 then recovery of your legal costs is limited to Court fees and solicitors’ fees of around £72 – £195 
  • If you are successful in your claim for a value over £10,000 then you may be entitled to recover a proportion of your legal costs from the debtor 
  • You cannot reclaim any VAT element of our fees from your debtor 

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Debt Recovery Fees

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Telephone:
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