Debt Recovery Costs
Range of fixed fees for a business to business debt that is undisputed
Range of fixed fees for a business to business debt that is undisputed
These costs apply where your claim is in relation to a simple unpaid invoice which is not disputed and enforcement action is not needed. If the other party disputes your claim at any point, further work will be required and we will 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 |
Our fee |
Total |
|
Up to £5,000 |
£35 - £205 |
£390 (£325 + £65 VAT) |
Between £425 and £595 |
|
£5,001 - £10,000 |
£455 |
£390 (£325 + £65 VAT) |
£845 |
|
£10,001 - £50,000 |
5% value of the claim |
Between £210 (£175 + £35 VAT) and £300 (£250 + £50 VAT) per hour |
Estimates available upon request |
Anyone wishing to proceed with a claim should note that:
· You may not recover all of your costs from the debtor even if successful, in particular;
· 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 of £325+vat for simple debts under £10,000 includes:
· Taking your instructions and briefly reviewing documentation
· Undertaking appropriate searches
· Sending a letter before action
· Receiving payment and sending to you, or providing advice on next steps if the debt is not paid.
Further work upon which fees can be agreed:
· Considering extensive documentation
· Negotiating following a denial of liability
· 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 21 days, providing you with advice on next steps and likely costs
Matters usually take 1 – 12 months 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. If enforcement action is needed, the matter will take longer to resolve.
The debt recovery team has over 20 years of collective experience in delivering high quality work in all matters relating to debt recovery.
We have five members of the team who may work on your matter. Regardless of who works on your matter, they will be supervised by Phil Masters, Partner and head of Dispute Resolution.
Your Commercial Litigation & Business Disputes Team
Partner
Following university Phil was employed by Dawn Advice as a legal advisor. Dawn is a charitable organisation based near Cramlington that provided detailed…
Senior Associate
Jonathan advises on all aspects of Mental Health and Court of Protection Law, alongside work in Civil Litigation. He is an Accredited Member of the Law…
Associate
Rachel is an Associate Solicitor working across the Dispute Resolution/Employment and Mental Health teams. She has excellent academic credentials including…
Solicitor
Rachel started her career in the legal sector in 2009 and joins BHP Law’s Personal Disputes Resolution team after spending the past 11 years as an Associate…
Paralegal
Holly completed a four-year course at Northumbria University and received an integrated master’s degree as well as her Legal Practice Course qualification…
Apprentice Solicitor
Ellie joined us in September 2020 as a Solicitor Apprentice in our Court of Protection team. Ellie continues to study towards her law degree one day per…
