PRICING FOR DEBT RECOVERY FOR BUSINESSES

Please note that these costs are for general guidance purposes only, in respect of pursuing or defending a debt claim. A tailored quote will be provided on further enquiry, subject to the complexity of a particular matter and issues which may not be anticipated at the outset of instructions.

Our Debt Recovery Team

Mark Brassey – Partner

John Turner – Partner

Katie Froude – Partner

Shahnaz Farahi – Senior Associate Solicitor

Charlotte Belton – Solicitor

Maria Croca – Trainee Solicitor

Monika Totman – Paralegal

Solicitors’ fees

Partner - £425 plus VAT.

Senior Associate Solicitor - £325 plus VAT.

Solicitor - £250 plus VAT.

Trainee solicitor - £195 plus VAT.

Paralegal - £185 plus VAT.

Our fees are charged at the above rates on a time spent basis.

The stages through which debt recovery matters proceed, are set out below and as to each include:

• liaising with you to clarify instructions and updating you regularly;
• undertaking searches;
• reviewing all documents and corresponding with the opponent and the court;
• instructing Counsel (where necessary); and liaising with witnesses (if any). 

In the event that a matter should require interim applications (by either party), involve international jurisdictional issues or property transactional work, such work will fall outside the work contemplated below. The estimates given below assume that the case proceed to a final hearing but, of course, the vast majority of cases settle, and our costs may well be lower than the range indicated.

Disbursements

Counsel’s fees – Counsel (barristers) may be instructed to advise more specifically on a technical issue or to appear at court hearings.  Our contract for their services is entered into with Counsel’s chambers.  Fees must therefore be agreed with Chambers.  The level of fees will depend on the particular complexity of your matter, the extent of work required to be done and the seniority of the particular Counsel selected. Please note that we will require funds on account of all disbursements to be incurred.

Our fees for interim hearings usually range between £1,000 - £3,000 plus VAT and for one day hearings our fees usually range between £1,500 -£4,500 plus VAT.

Court fees – A fee is payable to issue the claim and is based on the value of the claim.  Court payable fees after issue, are fixed.  There is no VAT on court fees.

Stages

• Pre-Action - Preparing or replying to a letter of claim under the pre-action protocols in a straightforward uncomplicated debt matter.  Our fees usually range between £300- £1,200 plus VAT.
• Alternative Dispute Resolution (ADR) – The courts will expect the parties to have made some effort to negotiate/mediate an amicable resolution in order to avoid litigation. A party who fails to take steps to resolve the dispute amicably can be penalised in costs. If you involve a professional mediator, you will be responsible for your share of the mediator’s fees (usually the cost is split equally between the parties) as well as your own solicitors/counsels’ costs for attending then mediation. A one-day mediation will usually involve costs of between £5,000 - £10,000 plus VAT.
• Statements of case, i.e. Claim Forms and Particulars of Claim/Defence/Counter Claim/Reply – Our fees would usually range between £2,500 - £5,000 plus VAT per statement of case.
• The court fee payable on filing a claim is fixed for claims up to £10,000 and for claims with a value of more than £10,000 the fee is 5% of the amount claimed (including interest) up to a maximum court fee of £10,000 for claims with a value of £200,000 or more.
• Judgment – If you are able to enter default judgment (where the defendant does not file a defence within the deadline) then our fees will range between £100 - £200 plus VAT.
• Case Management - If a case is defended, the court will allocate this case to “Track” depending on its value, complexity and issues to be determined.

Small Claims Track – this is for claims with a value of £10,000 or less.  

• Following the issue of the claim and the filing of any defence, the court would normally list the trial automatically and give limited directions for the exchange of evidence (disclosure of documents and witness statements).
• Hearing fee: this depends upon the amount claimed and range between £27 where the claim does not exceed £300 to £346 for claims of up to £10,000.
• Solicitors’ costs are irrecoverable save in exceptional circumstances.
• Court fees and nominal fixed costs recoverable if the claim is successful.

Our fees range assuming the case proceeds to trial: £4,500 - £7,500 plus VAT, depending on complexity, volume of documents, involvement of Counsel.

Fast Track – this is for claims will a value between £10,000.00 and £25,000. 

• Following the issue of the claim, the filing of any defence and directions questionnaires, the court would normally issue Standard Directions regarding the filing and exchange of evidence (disclosure of documents and witness statements) and list the claim for a one day trial.
• Hearing fee £545.00
• If the claim is successful, then fixed costs for solicitors and counsel would normally be recoverable. The fixed costs depend upon (a) the complexity of the case, (b) the stage at which the case concludes and (c) the value of the claim.
  • A straightforward case which concludes at trial would attract a fixed fee of £3,800 plus VAT plus £580 plus VAT for trial advocacy fees (making a total of £4,380 plus VAT).
  • A complicated case with a value of more than £15,000 which goes to trial would attract a fixed fee of £7,900 plus VAT plus £2,900 plus VAT for trial advocacy fees (making a total of £10,800 plus VAT) plus an amount equivalent to 40% of the amount awarded.

Our fees range: £5,000 to £25,000 plus VAT depending on complexity, volume of documents, involvement of Counsel.  

Intermediate Track – this is for claims with a value of between £25,000 and £100,000

• Following the issue of the claim, the filing of any defence and directions questionnaires, the court would normally issue Directions regarding the filing and exchange of evidence (disclosure of documents, witness statements and experts reports) and list the claim for a trial of between one and three days.
• Hearing fee £1,175.00
• If the claim is successful then fixed costs for solicitors and counsel would normally be recoverable. The fixed costs depend upon (a) the complexity of the case, (b) the stage at which the case concludes and (c) the value of the claim. There can be additions or subtractions from the fixed fees depending on whether specific work is required.
  • A straightforward case which goes to trial would attract a fixed fee of £6,600 plus VAT plus £3,200 plus VAT for trial advocacy fees for the first day (and £1,400 plus VAT for subsequent days) plus an amount equivalent to 15% of the amount awarded.
  • A complicated case which goes to trial would attract a fixed fee of £29,000 plus VAT plus £5,800 plus VAT for trial advocacy fees for the first day (and £2,900 plus VAT for subsequent days) plus an amount equivalent to 22% of the amount awarded.

Our fees range: £16,000 to £65,000 plus VAT depending on complexity, volume of documents, involvement of Counsel.  

Multi Track – this is for claims with a value of more than £100,000

• Following the issue of the claim and filing of a defence, the court would list a Costs and Case Management Hearing. We would need to prepare Cost Budgets and attend the Case Management Hearing.
• The court would give tailored directions such as for disclosure of documents, exchange of witness statements and appointment of experts and production of reports, and it would set a detailed timetable to Trial
• Hearing fee £1,175.00.

Our fees range: in standard cases £20,000 - £100,000 plus VAT depending on complexity, volume of documents, number of witnesses, expert involvement.

Our fees range for Enforcement

• Statutory Demand - £1,000 - £1,500 plus VAT plus process server’s fees to serve the demand.
• Bankruptcy Petition - £4,000 - £7,500 plus a court fee of £302 and a deposit of £1,500.
• Third Party Debt Order - £1,250 - £2,500 plus VAT and court fee of £119
• Charging Order - £1,500 - £2,500 plus VAT plus court fee £119