Debt Recovery
We are here to assist
We have outlined below the costs and fees involved at each stage of the debt collection process. Please be aware that invoices are issued to you at the end of the month for all work carried out in that month. Our terms are 14 days. VAT is not included in any of the amounts set out below. Court fees are not subject to VAT but VAT is payable on our fees and any other costs set out.
More information on Debt Recovery can be found below.
If you wish to speak with one of our specialists, please contact us via 01204 866597, [email protected] or our Contact Us page.
FIRST STAGE
To begin the debt collection process where the debtor is a limited company or a firm (partnership) we can send either a Letter Before Action to the debtor, which requests payment from the debtor within seven days or alternatively a Late Payment Demand, which not only claims your basic debt but also claims interest, compensation and your reasonable debt collection costs under the Late Payment of Commercial Debts (Interest) Act 1998, provided both parties were acting in the course of business.
Letter Before Action only £25.00 (+ VAT)
Suing individuals
To begin the debt collection process where the debtor is an individual the new Pre-action Protocol for Debt Claims is applicable from 1 October 2017. It will only affect you when your debtor is an individual. Our charge is £50 plus VAT and is applicable to letters containing up to 16 printed sheets of A4 paper and postage.
Please note that if the debt is paid at this stage, you will not be charged any of the costs or fees listed below.
SECOND STAGE
Court Actions in England and Wales
Claim Value | Costs (+ VAT) | Court Fees | *Total (+ VAT on Costs) | Standard LBA Debtor Pays | Standard LBA Non-Recoverable Costs | LPD Debtor Pays |
£25 to £200 | £70 | £25 | £95 | £75 | £20 | All |
£200 to £300 | £80 | £25 | £105 | £75 | £30 | All |
£300 to £500 | £90 | £35 | £125 | £85 | £40 | All |
£500 to £600 | £110 | £60 | £170 | £130 | £40 | All |
£600 to £1,000 | £140 | £60 | £200 | £130 | £70 | All |
£1,000 to £1,500 | £150 | £70 | £220 | £150 | £70 | All |
£1,500 to £3,000 | £150 | £105 | £255 | £185 | £70 | All |
£3,000 to £5,000 | £150 | £185 | £335 | £265 | £70 | All |
£5,000 to £10,000 | £170 | £410 | £580 | £510 | £70 | All |
£10,000 to £15,000 | £170 | 4.5% * | 4.5% * + £170 | 4.5% * + £100 | £70 | All |
£15,000 to £50,000 | £175 | 4.5% * | 4.5% * + £175 | 4.5% * + £100 | £75 | All |
£50,000 to £100,000 | £180 | 4.5% * | 4.5% * + £180 | 4.5% * + £100 | £80 | All |
All claims under £100,000 are issued through the County Court Business Centre. VAT is charged on costs, not fees and is not recoverable from the Debtor, but can be reclaimed by you if VAT registered (unless exceptionally you operate under the VAT Flat Rate Scheme).
* of the claim value.
The Total column is the amount you pay regardless of whether the debt has been paid at this stage. The Debtor Pays column is the amount the Debtor pays when an action is successful, this may be after our invoice. The Court calculate the fee on the total of the debt plus interest, which may put the Court fees and costs into the higher band. You will not recover the sum in the Non-Recoverable column for a standard LBA. There are very exceptional circumstances where we are able to cancel the court action on the day of processing. Where we are able to do so, a cancellation charge of no more than the equivalent non-recoverable costs element will apply, otherwise the total costs and fees will be payable.
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.
Our fee includes:
- 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 Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
- When Judgement in default in received, write to the other side to request payment
- If payment is not received within 21 days, providing you with advice on next steps and likely costs
Timescales
It usually takes the court about 10 working days to enter judgment following receipt of a request to enter judgment. However, matters usually take 4-6 weeks 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.
THIRD STAGE
Judgment & Enforcement in England and Wales
Action | Judgment Amount | Judgment Costs (+ VAT) | Enforcement Costs (+ VAT ) | Enforcement Fees | *Total (+ VAT on Costs) | Standard LBA Debtor Pays | Standard LBA/ LPD Non-Recoverable costs |
Bailiff | £25 to £125 | £32 | £2.25 | £77 | £111.25 | £101.25 | £10 |
Bailiff | £125 to £600 | £37 | £2.25 | £77 | £116.25 | £101.25 | £15 |
HCEO | £600 to £5,000 | £42 | £51.75 | £66 | £159.75 | £139.75 | £20 |
HCEO | Over £5,000 | £55 | £51.75 | £66 | £172.75 | £147.75 | £25 |
The courts calculate the Enforcement Fee on the Judgment total, which may put the fee into the higher band (if the enforcement is NOT issued through the Northampton County Court Business Centre the court fee is increased by £33). If the debtor files an Acknowledgement of Service the costs increase by £3 for debts up to £5,000 and by £5 on debts over £5,000. The HCEO will collect their charges from the debtor direct. However, in the event of the HCEO being unsuccessful there will be an abortive fee, which is generally £75 plus VAT. We will automatically instruct the Enforcement Officer (HCEO) in every case over £600.00. Stage 3 costs are based on default proceedings where the High Court Enforcement Officer (HCEO) or Bailiff is instructed. Judgment Costs are calculated on the total of the balance of the debt plus the fixed costs and fees on issue plus interest.
Matters referred to our litigation department may be charged at £227 plus VAT per hour.
In some cases, a success fee may be applied based on the complexity of the matter. This can vary between 10% to 25% plus VAT and would only become payable if we succeed in recovering your debt. If we are unsuccessful, you are only liable to pay the fixed fees set out above
