Below are a collection of frequently asked questions from the “Debt Recovery” category. To view the full answer to each question please click the button below it. If you have any more specific questions that are not answered on this page please contact us and we will be happy to discuss it with you.
How much does your debt recovery service cost?
These costs apply where your claim is in relation to a business to business 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||Our Fee (inc VAT)||Total|
|Up to £5000||£185||£180||£365|
|£5001 – £10,000||£410||£240||£650|
|£10,000 – £50,000||4.5% value of claim||£300||£300 + court fee|
Anyone wishing to proceed with a claim should note that:
The VAT element of our fee cannot be reclaimed from your debtor.
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 sheriff 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 14 days, providing you with advice on next steps and likely costs
Matters usually take 4-6 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. If enforcement action is needed, the matter will take longer to resolve.
Is it worth serving a Statutory Demand on someone who owes me money?
The up side of doing this is that it is quick and relatively cheap to do.
The downside is that if the debtor doesn’t pay then your next step is an expensive one. You either have to issue a bankruptcy petition or a winding up petition.
If the person or company are solvent and have the money you are trying to recover then this would be a sensible way to go.
If they are insolvent or on the edge and you issue a bankruptcy or winding up petition you may push them over the edge into insolvency.
The effect of this is that you will be in the ‘pot’ with all other unsecured creditors so you will n ot be top of the list of those (if any) who get paid just because you issued the petition.
Contact us at TM LAW for further expert advice on debt collection and ways to go about it.
The advice set out in our frequently answered questions is generic advice not specific to your case and no liability attached to the answers. However, if you do want advice specific to your case please contact us at TM Law and we would be delighted to either fix up a meeting or have a brief chat with you to see if we can assist.