Pricing and Transparency
Debt Recovery up to £100,000
The information on this page is provided in accordance with the SRA Transparency Rules and applies to debt recovery matters where the value of the debt is up to £100,000.
Our fees will depend on the value and complexity of the debt, whether the debt is disputed, whether the debtor responds, whether court proceedings are required, and whether enforcement action is needed.
Unless stated otherwise, our fees are exclusive of VAT, which will be charged at the applicable rate.
Pre-action debt recovery
The first stage in most debt recovery matters is to send a letter before action or letter before claim to the debtor. This gives the debtor an opportunity to pay before court proceedings are issued.
Our fee for preparing an initial tailored letter before action is £275 plus VAT. If further pre-litigation negotiations are required, these will usually be charged at our hourly rates. If the matter settles before proceedings are issued and a settlement agreement is needed, our fee for preparing a pre-issue settlement agreement is £950 plus VAT.
Where appropriate, we may also claim interest and compensation on commercial debts. If compensation is recovered, we may charge a percentage of the compensation recovered, which will be explained to you before work begins.
Issuing court proceedings
If the debtor does not pay following pre-action correspondence, it may be necessary to issue court proceedings.
For straightforward undisputed claims, our fixed commencement costs for issuing court proceedings are usually between £50 and £100 plus VAT, depending on the value of the claim.
Court issue fees are payable in addition to our fees. These are set by the court and usually range from £35 up to 5% of the claim value, depending on the amount being claimed.
If the debtor does not respond to the claim, or admits the debt, we may be able to request judgment. Our fees for judgment in default or judgment on admission are usually between £22 and £70 plus VAT, depending on the value of the claim and the type of judgment required.
Hourly rates
Where work is charged on an hourly rate basis, our hourly rates range from £205 plus VAT to £400 plus VAT, depending on the seniority and experience of the person carrying out the work.
More complex or strategic work is usually carried out by a solicitor or partner. Suitable preparatory or administrative work may be carried out by a trainee or paralegal under supervision.
We will confirm the hourly rates that apply to your matter before work begins.
If the claim is disputed
If the debtor disputes the claim, files a defence, brings a counterclaim, or raises issues that require further investigation, the matter will no longer be treated as a straightforward undisputed debt recovery matter.
In those circumstances, we will discuss the further work required and provide updated costs information before carrying out that work.
Depending on the value and complexity of the claim, further work may include advice on the defence, preparing a directions questionnaire, settlement negotiations, mediation, applications to court, witness statements, disclosure, preparation for hearings, trial preparation and attendance at hearings.
For defended claims, our fees may be charged on a fixed fee, capped fee or hourly rate basis, depending on the work required.
Enforcement
If judgment is obtained and the debtor still does not pay, enforcement action may be required.
We can advise on the enforcement options available, including tracing, orders to obtain information, attachment of earnings, charging orders, third-party debt orders, High Court Enforcement Officers and orders for sale.
Our enforcement fees will depend on the enforcement method chosen. As a guide, enforcement-related fees may range from around £51.75 plus VAT to £6,500 plus VAT, depending on the type and complexity of the enforcement action required. Disbursements, such as court fees, Land Registry fees, tracing agent fees or enforcement officer fees, may also be payable.
We will advise you on the most appropriate enforcement option and provide a costs estimate before enforcement action is taken.
Insolvency proceedings
In some cases, insolvency proceedings may be appropriate where the debt is undisputed. This may include bankruptcy proceedings against an individual or winding-up proceedings against a company.
Our fees for insolvency-related debt recovery work are usually charged by stage. As a guide, our fees for individual stages of insolvency work usually range from £300 plus VAT to £1,150 plus VAT, depending on the work required.
Significant disbursements may also be payable, including court fees, Official Receiver deposits, process server fees and hearing fees. We will confirm the likely costs before any insolvency step is taken.
Disbursements
Disbursements are costs payable to third parties. These may include court fees, application fees, process server fees, tracing agent fees, Land Registry fees, counsel’s fees, expert fees, enforcement officer fees and other third-party charges.
Where the exact amount of a disbursement is not known at the outset, we will provide an estimate or range where possible and confirm the cost before it is incurred.
What is included
For straightforward undisputed debt recovery matters, our work may include reviewing the debt documents, advising on the recovery options, preparing a letter before action, issuing court proceedings, requesting judgment where appropriate, and reporting to you on progress.
The exact work included will depend on the stage of the matter and the pricing agreed with you.
What is not included
Unless we agree otherwise, the pricing above does not include defended proceedings, counterclaims, contested applications, hearings, appeals, enforcement action, insolvency proceedings, claims involving debtors outside England and Wales, counsel’s fees, expert fees, tracing fees, process server fees, foreign lawyer fees or other third-party disbursements.
If any of these become necessary, we will provide further costs information before carrying out the additional work.
Likely timescales
A letter before action can usually be prepared within a few working days once we have received the necessary documents and information.
If court proceedings are issued, the debtor will usually have 14 days from service to respond, or 28 days if an acknowledgment of service is filed.
If the debtor does not respond, judgment in default may be requested. The time taken for the court to process judgment can vary.
If the claim is defended, the matter may take several months or longer, depending on the court timetable, the complexity of the issues, the evidence required and whether the matter settles.
Who will carry out the work
Debt recovery and finance litigation work may be carried out by solicitors, trainees or paralegals, depending on the nature, value and complexity of the matter.
All work is supervised by an appropriately experienced solicitor.
Debt recovery work is supervised by Phil Sheard, Partner at ABL Law, who has experience in commercial litigation, debt recovery, enforcement, insolvency-related disputes and finance litigation.
To see our team at ABL Law, Click Here