Debt Recovery Fees

Debt Recovery Fees



1. Letter Before Action

1.1. A Letter before Action is a court compliant letter to the debtor that outlines the sums owed and provides an appropriate timeframe for repaying them, usually 14 days. Our fees for drafting and issuing a letter before action is as follows:

Debt TypeOur fee
Outstanding Invoices – Undisputed£50 + vat + disbursements
Disputed Debts or debts relating to breach of contract or termsCharged at fee earner’s hourly rate (as set out below)

1.2. The Letter Before Action is the initial stage of the debt recovery process and often, if the Debtor can pay the sums due, this letter will be effective in prompting payment and no further legal action will be required.

2 Court Claims

2.1. These costs apply where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide you with a revised advice about costs if necessary, which could be on a fixed fee (e.g.: if a one off letter is required) or an hourly rate if more extensive work is needed.


Debt ValueOur Fee
Up to £5,000£550 + vat + disbursements
£5,001 – £10,000£700 + vat + disbursements
£10,001 – £15,000£850 + vat + disbursements
£15,001 – £50,000£1000+ vat + disbursements
£50,001 – £100,000£1250 + vat + disbursements
£100,001 +Please contact our Dispute Resolution Department

2.3. Court fees are based on the value of the claim and whether the claim is issued on paper or if it is a claim that is suitable to issue online. The link for the court fees is

Please note that this is an external third party link and is correct as at October 2018. It is subject to updates.  This firm is not liable to the accuracy of the information on this link.

3. Important Factors to Consider

3.1. 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.

4. What is covered by our fee?

4.1. 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 14 days, providing you with advice on next steps and likely costs.

5. Hourly Rates

5.1. Where are our work is charged on an hourly rate basis, our hourly rates will be charged as follows depending on the experience and qualifications of the team member carrying out the work required on your matter:

Team MemberHourly Rate
Partner£350 + vat per hour
Assistant/Associate£225 + vat per hour
Trainee£175 + vat per hour
Paralegal£150 + vat per hour

5.2. Please note often work carried out will be charged on a combination of these rates depending on which aspect of the work is carried out by whom.

6. Disputed Debt

6.1. If the debt is disputed, the fixed fees above will not apply and our normal hourly rates would apply.

6.2. If you have a disputed debt, our Dispute Resolution team will advise on the work involved and the likely cost.  This will depend on a number of variables including the number of witnesses, the complexity of the defence raised, the amount of documentation to be reviewed, any counterclaims and the parties involved.

7. How long will it take?

7.1. How long a matter will take from receipt of instructions from you to receipt of payment from the other side depends on whether it is necessary to issue a claim and whether the other side pays promptly on receipt of judgement.

7.2. We anticipate that a straightforward debt recovery claim can take 1 to 3 months.  This is based on the other party making prompt payment on receipt of judgement in default.

7.3. If enforcement action is needed, the matter will take longer to resolve. For information regarding our services for enforcement and the most appropriate options for your claim please contact us.

7.4. This is just an estimate and we will of course be able to give you a more accurate timescale once we have more information and as the matter progresses.

8. Stages of the Debt Recovery Process

8.1. Please click here to download the flowchart which will guide you through the steps involved in the debt recovery process.

9. Statutory Demands and Insolvency Proceedings

9.1. There may be some circumstances where the option of serving a Statutory Demand upon your debtor may be appropriate with subsequent bankruptcy or winding up proceedings being issued if necessary.  This option is an alternative to the traditional County Court claim route.

9.2. A Statutory Demand may be served upon an individual debtor for debts of £5000 or more and upon a company debtor for debts of more than £750; if the debtor fails to comply with the statutory demand within 3 weeks then you would have the option to proceed to issue bankruptcy or winding up proceedings.

9.3. Whether this option is appropriate for your claim will depend on the nature of your claim and the debtor’s financial circumstances.

9.4. Our fees for serving a statutory demand and subsequent bankruptcy or winding up proceedings are:

Debt ValueCourt FeeOur Fees
Statutory DemandN/A£200 + vat + disbursements
Bankruptcy Proceedings for Debts not exceeding £100,000£280 (plus a deposit payable to the court of £990)£750 + vat + disbursements
Winding up Proceedings for Debts not exceeding £100,000£280£1,000 + vat + disbursements

10. Enforcement Action

10.1. In the event that judgement against the debtor is successfully obtained but enforcement action appears necessary to recover the judgement sums, our charges for the key enforcement options are:

Action to Be TakenOur fees
Bailiff/Sherriff£150 + vat + disbursements
Tracing Agent£50 + vat + disbursements
Oral Examination£250 + vat + disbursements
Attachment of Earnings£250 + vat + disbursements
Charging Order (Interim and Final)£750 + vat + disbursements

11. Disbursements

11.1. Disbursements are costs related to your matter that are payable to third parties, such as court fees.

11.2. Once we have received the monies from you for the disbursements we will handle the payment of them on your behalf to ensure a smoother process.

11.3. Estimates of such disbursements will be provided to you for approval during the course of proceedings prior to them being incurred. Typical disbursements are (this list is not exhaustive):

  • Court fees
  • Process server fees for serving documents
  • Barrister fees – this can vary depending on experience and qualifications of the barrister instructed
  • Companies House search fees
  • Agents Fees
  • Bailiff Fees
  • Land Registry Search Fees

12. Who will be dealing with my matter?

12.1. The majority of the work that we undertake for clients is carried out by a qualified solicitor who may be assisted by an assistant solicitor, trainee solicitor, paralegal or suitably experienced member of staff. The work will be supervised by a Partner.

13. VAT

13.1. Where applicable, VAT will be charged at the prevailing rate.