Debt Recovery
Debt Recovery – Individuals and businesses
The below sets out our fees for an undisputed debt claim which does not involve enforcement action. In the event the claim becomes disputed, or requires enforcement action, we will provide you with a separate, tailored costs estimate. VAT is payable on our fees as set out below.
Debt Value Court Fee Our Fee (exc VAT) VAT
Up to £5,000 £35-£205 £600 - £1,500 £120-£300
£5,000.01-£10,000 £410- £455 £750 - £2,000 £150-£400
£10,000.01-£50,000 4.5% of the value of the claim (online filing) £1,500 - £3,000 £300-£600
5% of the value of the claim (filed on paper)
- Claims which have a value of up to £10,000 are likely to be allocated to the small claims track where only minimal costs are recoverable from the opponent (subject to ability to pay);
- The VAT of your fee cannot be reclaimed from your debtor if you are VAT registered;
- We are required to charge VAT to our fees and disbursements at 20% (unless with disbursements we indicate that they do not incur VAT);
- The debt value includes interests and costs;
Our above fees include taking your instructions and corresponding with you, carrying out the necessary searches, sending a Letter Before Action, issuing a claim, applying for Default Judgment in the event no Acknowledgment of Service or Defence is received, sending the payment to you if the matter is settled, providing you with advice on next steps and costs in the event the matter is not settled.
Matters usually take between 4 weeks to 16 weeks from receipt of instructions up to payment from the opponent, in the event payment is made promptly. In the event the matter becomes disputed or if enforcement action is required, the matter will take longer to resolve.
In the event the other party disputes your claim, our hourly fees will be charged. Miranda Hay and Martin Webb are both Grade A fee earners being Solicitors with over 8 years’ litigation experience and their hourly rate is currently £275 plus VAT at 20% (£55 VAT – total £330.00). The hourly rate is reviewed on 1 April each year.
It is difficult to estimate how long a disputed case will take to resolve because it will depend on a number of factors, for example, how much documentation is involved, the complexity of the issues raised, whether there is a counterclaim (which is a claim against you by your opponent), whether expert evidence is required and the conduct of the opponent, amongst other issues. To estimate, the matter could take between 5-55 hours to complete and could be more.
The service we provide will include giving you full, tailored advice to your specific case to guide you through the correspondence and court process, liaise with the opponent, obtain expert evidence if needed, instructing a barrister if required and discussing settlement options.
The costs do not include any enforcement action required, any extra applications, any appeals or the costs of the opponent in the event you are ordered to pay those costs.
It is difficult to estimate how long the case will take because the court timetable varies from court to court. However, we will aim to promptly issue your case at court after your instructions if this is required once we have followed the pre-action protocols, which could be within 18 weeks of you instructing us once the pre-action process has been followed. This does not include if mediation is offered.
Disbursements
Disbursements are costs related to your matter which are payable to third parties. You are liable to pay us the disbursements before they are incurred. We then handle the payment of the disbursements to third parties on your behalf. Potential disbursements you may incur are as follows:
- Court fees;
- Counsel’s fees;
- Expert fees;
- Mediator’s costs;
- If we attend a court hearing, meeting or mediation there will be additional disbursements in respect of our mileage/travel expenses.
Defended Small Claims (up to £10,000)
Disbursements Our Charges VAT
Handling standard defended small claims (which does not include a counterclaim,
preparation of witness statements or instructing Counsel) £175.00 (+20% vat of £35) £750.00 £150.00
Court Hearing fee where the debt value is up to £300.00 £27.00
Court Hearing fee where the debt value is up to £500.00 £59.00
Court Hearing fee where the debt value is up to £1,000.00 £85.00
Court Hearing fee where the debt value is up to £1,500.00 £123.00
Court Hearing fee where the debt value is up to £3,000.00 £181.00
Court Hearing fee where the debt value is up to £3,000.01 or above £346.00
We will be charging our standard hourly rates plus VAT for the work completed for the above which we will agree with you prior to incurring.
Please contact one of our experienced solicitors, Miranda Hay Miranda.hay@chamberlainmartin.com or Martin Webb martin.webb@chamberlainmartin.com or by phone 01243 825211 for more information.