Debt Recovery Fees
Avoiding late or non-payment of debts is key to reducing the risk of overdue payments turning into bad debts and avoiding cash flow problems. If it is a business debt maintaining your business’ reputation is also an important commodity and goes hand in hand with debt recovery. Bloomsbury Law specialise in all types of litigation matters. We provide an extensive debt collection service to assist you in recovering your debts and our charges are very transparent.
Our Team and Hourly Rates
Our dispute resolution team is made up of qualified solicitors (ranging from 2 years’ experience to over 20 PQE) and trainee solicitors/paralegals/ legal assistants. Our Litigation and Dispute Resolution Team is supervised by the litigation partner/solicitor, Jamil Ahmud. Our team’s hourly charge out rates vary from £125 – £450 plus VAT per hour.
Our debt recovery work includes some or all of the following as necessary:
- taking your instructions and reviewing documentation;
- sending a letter of claim/letter before action;
- recovering payment from the debtor, or if the debt is not paid, drafting and issuing a claim;
- alternatively drafting a statutory demand followed by bankruptcy or winding up petition;
- where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement;
- when Judgement the is received, writing to the other party to request payment.
The time and cost estimates below are provided on the following:
- the claim is in relation to an unpaid invoice which is not disputed and enforcement action is not required;
- there are a small number of documents (nor more than 10) to review in order to advise you;
- the case is for a simple, undisputed debt claim with no added complexities or complications such as asset tracing, and dealing with parties and/or assets outside the jurisdiction of England & Wales;
- the estimates are for the review all of the relevant papers and preparing a first draft of a letter before action only; and
- the estimates exclude disbursements, court fees, any barrister’s and/or expert charges (if any).
We do not offer fixed fee or conditional fee arrangements. The work carried out is on a time cost for dealing with your matter is dependent on the time spent calculating the claim and reading the relevant documents you provide.
All estimates referred below are excluding VAT.
Up to £5,000 debt value: 8 to 12 hours of work – Approximate fees £2,000 -£4,000 [Court fees up to £205]
£5,001 to £10,000 debt value: 10 to 12 hours of work – Approximate fees £2,400 -£4,000 [Court fees up to £405]
£10,001 to £50,000 debt value: 20 to 40 hours of work – Approximate fees £7,000 -£14,000 [Court fees up to £205]
£50,001 to £100,000 debt value: 40 to 70 hours of work – Approximate fees £14,000 -£25,000 [Court fees – 5% value of the debt claim]
£100,001 to £200,000 debt value: 50 to 100 hours of work – Approximate fees £17,500 -£35,000 [Court fees – 5% value of the debt claim]
Above £200,000 debt value: 50 to 100 hours of work – Approximate fees £17,500 -£35,000 [Court fees – £10,000]
The above does not take into account any Counterclaim or Set-off Claim that the debtor may have.
A disbursement is defined as a cost payable to a third party which is incurred by us on behalf of our clients. The cost of instructing a barrister to prepare a claim can vary and our firm often instruct barristers on the basis that it is more cost effective to do so. For a barrister to prepare the Particulars of Claim is between £1,000 to £2,000 plus VAT, depending on the nature and complexity of the case.
The cost of instructing a process server to serve a Claim, statutory demand, winding up petition or bankruptcy petition ranges from £120 to £240 plus VAT, depending on the location of the debtor within England & Wales.
This varies as to whether matters are resolved without court proceedings or not. If court proceedings are required, it may take between 9 to 15 months for the matter to be resolved.