UPDATE 5/1/2021 In line with the Prime Minister’s announcement of a further national lockdown, we are continuing to work hard to safeguard our offices with client and staff safety as...
What does our service include?
Our Debt Collection service covers businesses who are chasing outstanding invoices and the debt is not disputed.
If the debt is being disputed by the other party or is for anything other than outstanding invoices we will need to discuss the matter further with you before providing a tailored quote.
Our Debt Collection service typically includes the following stages:
- Taking your instructions and reviewing initial documentation
- Sending a Letter of Claim
- Receiving payment and sending onto you, or if the debt is not paid drafting and issuing a claim
- Where an Acknowledgement of Service is not received, applying to the court to enter Judgement in default
- When Judgement in default is received providing you with advice on next steps and likely costs
How long will the debt collection process take?
We aim to send out the Letter of Claim within two working days of our initial meeting with you. If you have already met with us we aim to send out the Letter of Claim within two working days of receipt of instructions and the necessary paperwork. Business debtors (not including sole traders) are given either seven or fourteen days to respond to the Letter of Claim and or make payment. Individuals (including sole traders) are given thirty days to respond and or make payment as required under the Pre-action protocol for debt claims. Depending on the response to the Letter of Claim a decision is then taken on the best way forward which may include issuing court proceedings.
If a claim is sent to the court how long it takes to issue depends on the courts caseload. It can typically take between three and five weeks. When the claim is issued the debtor is given fourteen days to respond. If no response is received we will apply to the court for judgment in default. Obtaining judgment in Default depends on the court but typically takes around three weeks.
Who will act on your behalf?
Your matter will be undertaken by Catherine Green of our Litigation team.
How will my matter be supervised?
All our Litigation matters are supervised by Judi Bonham who is our Managing Director.
How much will it cost?
Our costs for resolving your debt are as follows:
Our Legal Fees
ID Search using Thirdfort, Our total fee inc. VAT: £24 Total ex. VAT: £20
Initial meeting to discuss your business and your debt(s) £144 Inc. VAT Total ex. VAT: £120
Letter of Claim (each) depends on the amount of different debts being chased and whether the debtor is a business or an individual £60-£180 Inc. VAT Total ex. VAT: £50-£150
Drafting Court Proceedings £300 Inc. VAT Total ex. VAT: £233.33
Requesting Judgment in Default £90 Inc. VAT Total ex. VAT: £75
Anyone wishing to proceed with a claim should note that:
- Fixed recoverable costs (i.e. those you can claim from the debtor) are between £70 and £100 on issue and £22 on requesting judgment. Therefore you will not be able to claim the full amount charged from the debtor
- Interest and compensation may take the debt into a higher banding, with a higher cost.
What will we pay to third parties on your behalf?
If proceedings are required to be issued (we issue them on paper rather than online) the court fee will be paid to the court on your behalf (after we have received it on account from you). Find out more about potential Court Fees here.
If we have prepared the letter of claim or the court proceedings, and your debtor pays before the letter or the proceedings are sent to the court, then our fees are still payable.