Debt recovery

Efficient and effective debt recovery is essential to the health of your business and personal finances but can be extremely time consuming and often requires great sensitivity. We will work in partnership with you to recover debts, whilst still aiming to preserve your relationship with your clients whenever possible.

Often debts can be recovered without the need for legal proceedings

In some circumstances, the intervention at an early stage by a solicitor will be enough to ensure prompt payment of the full amount due and also assist in avoiding awkward situations between you and your client/debtor. There are a number of very cost-effective steps we can take on your behalf including writing a ‘letter before action’ or ‘late payment demand'.

Debt recovery proceedings

If it becomes necessary to proceed to court, we will guide you through what can appear to be a daunting process, advising you of the correct procedure and we will pursue the case vigorously on your behalf.

If you are the creditor and you are successful in your claim we will do what we can to help you understand and enforce the judgment and recover costs and interest as appropriate. It must be noted that in matters where the claim is less than £10,000, one does not usually recover their legal expenses. This is why we also advise our clients to apply a pragmatic commercial approach when chasing debts.

It is important to appreciate however that even though you may have a judgment this does not mean that you will get paid. If a person or a company has no assets or a company debtor goes into liquidation, your options for recovery are very limited. This is why it is very important to make enquiries about the financial status of the debtor prior to issuing proceedings.

Defending a claim

If you have received a claim form and do not believe that you owe the sum claimed or perhaps feel that the creditor owes you money then we can assist  you in defending or resisting a claim for a debt made against you.

Below is a table setting out an estimate of the cost of debt recovery proceedings. *

Please note that these costs apply to matters where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not required. If the other party disputes your claim at any point, we will discuss further work that will be necessary and provide you with revised advice on additional costs.

Debt value                        Court Fee                        Our Fee                          Total

Up to £5000                      £80 - £205                       £600                               £680-£805

£5001-£10000                    £455                                 £1200                             £1655

£10,001-£100,000              5% of the value               15% of the value             

                                          of the claim                      of the claim plus VAT

* Every situation is different so please note that each matter will be dealt with on a case by case basis.

 

Legal Fees 

These will include all work necessary to obtain payment of your debt and will include:

  • Taking your instructions
  • Undertaking appropriate searches
  • Sending a solicitor’s letter before action
  • Receiving payment and sending it on to you, or if the debt is not paid, drafting and issuing the claim
  • Where no Acknowledgement of Service or Defence is received, applying to the Court to enter Judgment by default
  • When Judgment in default is received, writing to the other side to request payment
  • If payment is not received within 14 days, providing you with advice on the next steps and likely costs.

 

How long will it take?

Matters usually take between 3-4 months from receipt of instructions to receipt of judgment in default from the Court. Judgment in default is only granted when the debtor has failed to defend the matter.  If enforcement action is required, the matter will take longer to resolve

Early intervention by a solicitor can save you time, money and stress

If you have a debt matter contact us today to see how we can help you