Debt recovery services factsheet cover

Letter before action; corresponding with debtor to try and establish liability and considering alternative methods of dispute resolution

We offer a quick and efficient debt recovery service with highly experienced litigators. We recover debts (whether it be from individuals or companies) using a variety of methods, commencing with pre-legal action to legal action and enforcement procedures if necessary. As we are experienced in this area of law, you can be sure that our methods will be the best possible way to recover your debt as cost effectively as possible.

Our range of debt recovery services include both:

  • High Court and County Court
  • One off debt recovery – we can help you recover any amount which may have been owed for some time or is of high value. If you are a business, we will take responsibility recovering your debt
  • Ongoing debt recovery – we can offer an on-going debt recovery service to businesses and collect debts that are still outstanding, taking the responsibility away from your business
  • Tracing service and enforcement of judgments – when a Judgment is obtained and the debtor fails to pay, we utilise a variety of methods to enforce the Order. In addition to this, we offer a wide range of tracing services to businesses and individuals should the debtor disappear.

Whether it be one-off debt recovery or ongoing credit control, our expert team of litigators can offer cost aware advice and assist at any stage of the debt recovery process.

The Service

Stage one

Meet with you to take your initial instructions and discuss the background of the matter; consider all the paperwork available to you which assists in the matter

Stage two

Letter before action; corresponding with debtor to try and establish liability and considering alternative methods of dispute resolution

Stage three

Issuing court proceedings; preparing all court papers and serving the same on the debtor/excluding court issue fee

Stage four

Proceeding through the court process including considering documents and position put forward by debtor; completing court requirements such as directions, case management conference, disclosure, witness statement and trial preparation; considering methods of alternative dispute resolution and advising you of the most effective way of resolving the claim

Stage five

Attending trial with a barrister to obtain judgment in your favour

Stage six

Enforcement; upon obtained a judgment in your favour we can consider various methods of enforcement and the best way of recovering payment should the debtor fail to pay in accordance with the order

Average time scale** and what is the average fee?

Stage one

1 week from point of instruction  – £500-£1,250 plus VAT

Stage two

3-8 weeks from point of instruction LBA gives debtor 30 days to respond  – £750-1,250 plus VAT

Stage three

6-12 weeks from point of instruction – £1,250-2,000 plus VAT

Stage four

10-30 weeks from point of instruction – £3,000-10,000 plus VAT

Stage five

28-36 weeks from point of instruction – £1,500-£5,000 plus VAT

Stage six

Dependent of method of enforcement – Dependent on method of enforcement

**Timescales are dependant on Court response and listing times availability

Information on average fee

You should note that the amount of hours spent on your matter depends on the number of documents, whether anything is missing and how long it will take to obtain the missing documents. We will keep in close contact with you by your preferred method of communication (telephone, email or letter) and our time in taking your instructions will be taken into account when providing you with fee estimates.

Our hourly rates are between £150 to £250 per hour (plus VAT), depending on the person dealing with your matter.

The exact cost will be dependent upon individual circumstances. Your fee will reflect the time spent on the service, so where we spend more time on your matter, your costs will reflect the time spent to provide the service to you.

Likely disbursements

These are costs related to your matter that are payable to third parties. We handle the payment of the disbursement on your behalf to ensure smoother process:

  • Court fees
  • Counsel’s fees estimated between £1,000 to £5,000 plus VAT per day (depending on experience of the barrister) (excluding preparation)
  • Independent expert reports

If we are attending interviews with you – our travel/mileage costs.

Potential additional costs

The following factors could make a case more complex:

  • If it is necessary to make or defend applications to amend claims or to provide further information about an existing claim
  • Defending claims that are brought by litigants in person (i.e. those that are not legally represented)
  • Making or defending a costs application, complex preliminary issues
  • The number of witness documents
  • Volume of documentation
  • Approach adopted by opponent
  • If the value of the debt exceeds £100,000.

We will always provide you with a fee estimate at the start of each new matter, therefore if you would like a bespoke estimate for your particular matter/case, please contact us to discuss.

Please rest assured, if your case involves unexpected complications, we will always inform you, including any additional fees that may apply, so that you can make an informed decision as to how to proceed.

For more information about our costs and the debt recovery service, please contact Simon Rayment or Penny Haynes in our Litigation & Dispute Resolution Department.

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