Debt recovery: Range of fixed fees
Range of fixed fees for debt recovery for businesses where:
the debt is owed by another business based in England and Wales;
the debt is undisputed; and
the amount of the debt is less than £100,000.
Court Claims
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 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 value | Court fee (Nov 2024- subject to change by the Government) | Our fee | Total |
up to £5,000 | £35 - £205 |
| £665-£835 (depending on court fee). |
£5,001 - £10,000 | £455 |
| £1,335. |
£10,001 - £100,000 | 5% value of the debt/claim |
| £1,380.05-£5,880 (depending on court fee) + 2.5% of amount recovered. |
At present we are not registered for VAT so do not charge VAT on our fee.
Anyone wishing to proceed with a claim should note that:
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.
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 7 days, providing you with advice on next steps and likely costs.
Matters usually take 2-12 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgement in default.
Debt recovery can take 1- 2 weeks from receiving instructions from you to receipt of payment from the other side, if the other side pays promptly. If we need to issue proceedings either in respect of a dispute over the debt or any enforcement action is needed, the matter will take longer to resolve, potentially several months. It is difficult for us to provide a meaningful time estimate as the timetable for each case will be driven by factors such as the Court's availability and the debtor's approach.