Range of Fees For Debt Recovery Under £100,000
The Solicitors Regulation Authority requires us to provide details on our website to give clients price transparency in a number of areas including the above.
We do not advise on the recovery of consumer debts.
We also do not advise on recovery of debts under certain specific contracts such as debts due under construction contracts.
Every debt recovery situation, whilst having one common factor (namely that money is owing from one party to another), is different as the circumstances under which the contact between the parties has been entered into may be different, the terms of the contract may be different, and the circumstances of the debtor may be different. All these things need to be reviewed and examined to enable us to advise you on the most appropriate way forward for you.
If the debtor is an individual, then the creditor must follow the Pre-action Protocol for Debt Claims in the Civil Procedure Rules.
If the debtor is not an individual, then the creditor must follow the Practice Direction on Pre-action Conduct and Protocols in the Civil Procedure Rules.
If the creditor is certain that there is no dispute in relation to the debt and having reviewed the documentation and we agree, then the creditor can consider bankruptcy proceedings in respect of an individual or winding up proceedings in respect of a company. Those costs are not covered by this note.
If the creditor has security over the debtor or any third party’s property, such as the debtor’s home, then the creditor can issue proceedings to enforce that security. Those costs are not covered by this note.
Costs generally
In every case, before we do any work for you or give you any advice, we will send you a client care letter setting out what we will do, what we will not do, the basis upon which we will do the work for you and an estimate of the likely costs.
We have a range of pricing structures available and can provide a quote for work that you require to be carried out.
In respect of debt recovery matters for businesses for debts of up to £100,000, we have set out below the pricing if we charge at a standard hourly rate of £350 plus VAT. However, we reserve the right to agree an alternative pricing structure with you depending on the circumstances of the case.
All debt recovery work will be undertaken by Jeremy Rowland at an hourly rate of £350 plus VAT per hour (total £420). Mr Rowland qualified as a solicitor in 1990. He is what is known as a Grade A fee earner.
In addition to our costs, court fees will be payable – please see https://www.moneyclaimsuk.co.uk/PDFForms/EX50.pdf.
With most claims there are a number of distinct stages which are as follows.
Please note that the costs below do not take into account any counterclaim that the debtor may issue against you as part of their defence. Dealing with and defending a counterclaim may significantly increase both our costs and the disbursements such as counsel’s fees. We will advise you of our costs and disbursements in such circumstances.
Letter before action
This will usually give the debtor between 7 and 30 days to pay although if the debtor is an individual a minimum period of 30 days will be required.
Our costs for such a letter will be a minimum of £350 plus VAT (total £420). It can be more if the claim is not straight forward.
We will do a bankruptcy search against each individual debtor to make sure that they are not bankrupt. That will cost £2 per search.
We may also do searches at the Land Registry to see if the debtor owns the property which you say is his address. That will cost £6 per search.
The likely timescale for this stage will be two to five working days after instructions are confirmed and any funds for a payment on account of our costs, VAT and disbursements are cleared. This timescale may also depend on the amount of documentation and whether revisions are required to the draft letter before action if it needs to be approved by you.
Claim form
If the letter before action does not result in payment, then a claim form will need to be sent to court setting out full details of the claim (which may need a separate particulars of claim). The claim form is usually sent to the debtor by the court.
Our costs for this will be between £1,400 plus VAT to £3,500 plus VAT (total £1,680 to £4,200). This will depend on the nature of the claim, the documentation relating to it and any response that we may have had from the debtor.
If the claim is not straight forward, then counsel may need to be instructed to draft the claim form (and particulars of claim). Counsel’s fees may be between £1,000 plus VAT to £2,500 plus VAT (total £1,200 to £3,000).
The likely timescale for this stage will be five to ten working days after instructions are confirmed and any funds for payment on account of our costs, VAT and disbursements are cleared, depending on the complexity of the background to the claim. Further time may also be needed if counsel is involved in the drafting of the claim form and particulars of claim.
Default judgment
Once the claim form has been served, the debtor then has certain set periods of time in which to initially acknowledge that they wish to contest the claim and thereafter file a defence. In broad terms if the debtor does nothing within 28 days of service of the claim form, then you can ask the court to enter judgement against the debtor for the full amount of the claim. That is known as a default judgement.
Our costs for this will be £350 plus VAT (total £420).
The likely timescale for this stage is within five to six weeks of the claim form being issued and sent to the defendant.
Even if a default judgment is obtained, the debtor can still ask the court for it to be set aside if they have not been properly served (often by reason of a failure by the court) or if they actually have a defence but simply failed to submit it on time.
If an application to set a default judgement is made, further costs will be incurred in advising you on the application and how best to deal with it. We will give you an estimate of the likely costs that will be incurred at that time.
Case management
If a defence is filed, the court will want to manage the claim all the way to the final trial setting out the steps that the parties need to take and the dates by which they need to be taken (known as directions).
The court will require the parties to submit questionnaires and other documents relating to how they want the claim to be managed and sometimes the likely cost. The court encourages the parties to try and agree directions. The parties will usually need to attend a case management conference to discuss the claim generally and how it will be managed. Sometimes that will include managing the costs of the claim.
Our costs for this will be between £2,800 plus VAT to £7,000 plus VAT (total £3,360 to £8,400) with straight forward matters being towards the lower end of that scale.
If the claim is not straight forward then counsel may need to be instructed to deal with the case management conference. Counsel’s fees may be between £1,000 plus VAT to £2,500 plus VAT (total £1,200 to £3,000) depending on the length and complexity of the case management conference.
The likely timescale for this will be within three months of the defence being received although it may be longer if directions are not agreed and it is necessary to attend court for the costs and case management conference.
Exchange of relevant documents (known as disclosure)
The first step after the case management conference is usually making a list of all the documents which are relevant to the claim, exchanging that list with the debtor and sending them copies of any documents that they want. We will review the debtor’s list, ask for any documents that we need to see and review those documents with you.
Our costs for this stage will be between £2,800 plus VAT and £7,000 plus VAT (total £3,360 to £8,400) with straight forward matters being towards the lower end of that scale.
The timescale for this stage will depend on what is discussed in the costs and case management conference. Usually this will be between four to eight weeks after the costs and case management conference.
You will usually have up to two weeks after the list of documents has been sent to ask the defendant for copies of any documents you want to see.
Witness statements
After disclosure is dealt with, the parties need to send to each other statements from all the witnesses upon whose evidence they wish to rely at trial.
Our costs will depend on how many witnesses there are and how long their statements will be. Our costs for each statement may be between £1,400 plus VAT and £3,500 plus VAT per statement (total £1,680 to £4,200).
In addition, we will need to review each witness statement we receive from the debtor.
Our costs will depend on how many witness statements we receive and how long they are. Our costs for each statement may be between £700 plus VAT and £1,400 plus VAT (total £840 to £1,680).
Depending on the nature of the evidence in the witness statements we may take advice from counsel before your witness statements are finalized. If we do, counsel’s fee is likely to be at least £700 plus VAT (total £840) but we will get an estimate of their fees before they are instructed.
The timescale for this stage will usually be between four and eight weeks after you have received the defendant’s list of documents.
Expert evidence
In some cases, an expert may need to be appointed if the court needs to be addressed on any technical issues. The court may insist that the expert is jointly instructed by the parties. Alternatively, the court may allow each party to have their own expert.
Our costs will include considering who should be the expert, instructing the expert, considering the expert’s draft report and asking questions before the report is finalized and filed in court.
Our costs are likely to be at least £3,500 plus VAT (total £4,200) although they could be considerably more depending on whether there is a single or joint expert and the nature of the technical issues upon which the court requires assistance.
We will obtain an estimate of the expert’s fees before they are instructed.
Also, depending on the nature of the technical issue, we may take advice from counsel. If we do counsel’s fee is likely to be at least £500 plus VAT (total £600) but we will get an estimate of their fees before they are instructed.
The timescale for this stage will depend on what is discussed at the case and costs management conference. It may be dealt with after lists of documents are served or after witness statements are exchanged depending on the circumstances of the case.
Pre-trial review
After disclosure, witness statements and any expert’s report, the claim is then often listed for a hearing to make sure everybody is ready for trial. The court will require a questionnaire to be completed by the parties confirming what has and has not been done. Also, there may be an update on the costs that each party has incurred.
The review can often take place by telephone and the court usually prefers the person who will be dealing with the trial to be the one who deals with the review.
Our costs for this stage will be between £1,400 plus VAT and £3,500 plus VAT (£1,680 to £4,200). If the review is by telephone the costs will be towards the lower end of the scale.
Counsel’s fees are likely to be between £500 plus VAT and £1,000 plus VAT (total £600 to £1,200).
Hearing/trial fees
Before your claim can come to trial (or a small claims hearing depending on the amount of your claim) you will need to pay a hearing fee by the date set by the court. If you do not, then your claim will be struck out.
Hearing fees are here https://www.moneyclaimsuk.co.uk/PDFForms/EX50.pdf
Preparation for trial
A number of things need to be done which include preparation of the bundle of documents for the trial judge which should be agreed with the other parties, liaising with the court listing officer, sending out detailed instructions to counsel to attend the trial and argue your case.
Our costs for this stage will depend on the documentation that is required for trial. In a straight forward claim our costs are likely to be up to £3,500 plus VAT (total £4,200) and in a more complicated claim could be up to £7,000 plus VAT (£8,400).
Counsel’s fee for trial preparation (drafting the skeleton argument, chronology etc for the trial judge) will depend on their seniority (the more senior the more expensive), the amount of documentation and also whether the claim is straightforward or not. Counsel’s fee is likely to be at least £2,500 plus VAT (total £3,000) but we will get an estimate of their costs before instructions are sent to them.
Trial
The trial may be held in person in court or virtually (for example by teams or cloud video platform). It will cost less if it is held virtually.
Our costs for each half day of the trial are likely to be between £1,400 plus VAT to £2,100 plus VAT (total £1,680 to £2,250).
Counsel’s fees will depend on seniority (the more senior the more expensive). As a guide their fees may be between £2,500 plus VAT and £3,500 plus VAT for each half day of the trial (total £3,000 to £4,200).
The timescale for this depends on the time for disclosure and witness statements and it may be that the court gives a period (called a trial window) for the trial to be listed as part of the directions given at the costs and case management conference. The trial is unlikely to take place within four or five months of the costs and case management conference.
Appeal
The unsuccessful party at trial can still consider whether to appeal the judgement.
We will give you an estimate of our costs for dealing with any appeal at the time such appeal (whether it is by you as an unsuccessful claimant or by the debtor as an unsuccessful defendant) is raised.
Enforcement
If you obtain judgement against the debtor (either in default as set out above or at trial) we will advise you on the methods of recovering the money that the debtor has been ordered to pay you. This is known as enforcement.
There are several methods of enforcement which will have the further involvement of the court. We will discuss our costs and the court fees with you at that time.
Bankruptcy and winding up
Sometimes it may be appropriate to threaten a debtor with either a bankruptcy or winding up petition. We will give you details of our costs and the disbursements relating to such petitions if you wish to pursue that option and we advise that it is appropriate.
