Your case is unique, so we take a bespoke approach to pricing taking into account factors such as value and complexity, and will provide you with a personalised fee proposal at the outset. We recognise the importance of certainty to clients and in most cases we are able to offer either a fixed fee, or an initial fixed fee. We otherwise charge on a time spent basis at hourly rates ranging from £130 plus VAT (for a paralegal) to £375 plus VAT (for a partner). A full list of rates is available upon request. We do not enter into conditional fee agreements, damages based agreements or any other form of contingent fee arrangement, although we can assist in procuring ‘after the event’ legal expenses insurance to protect against the risk of an adverse costs order.
Dealing with the process
In the first instance we will send the debtor a letter of claim. This can result in prompt payment. If we receive no response or if the debtor refuses to pay without a good reason, we will discuss with you whether we issue a court claim. If the claim is ignored, we will enter default judgment. If the claim is defended, we will discuss the next steps with you, including whether you wish to make a settlement proposal or to propose ADR. What happened beyond that is up to the court, but typically there will be a case management hearing and dates will be set for disclosure, witness statements, expert evidence (if appropriate) and a hearing or trial to determine the outcome of the claim.
In relation to debt recovery work, such as the recovery of rent arrears from a former tenant, our average fixed fees are set out below. The work will be undertaken by a paralegal or trainee solicitor supervised by a junior solicitor unless agreed otherwise. These fees assume that this is a ‘standard’ debt recovery case and that no unforeseen matters or complications arise. We consider that if a claim becomes subject to complex factual or legal issues or requires expert evidence, it is likely to fall outside of the below debt recovery guideline costs and we will discuss fees with you separately. The fees below do not include the costs of disbursements, such as court fees or barrister’s fees.
|Drafting and sending of a Letter Before Action
|£500 Excl *VAT
|Drafting and issuing a Claim
|£850 Excl *VAT
|Drafting and filing a Defence
|£500 Excl *VAT
|Drafting and filing a Defence and Counterclaim
|£600 Excl *VAT
|Advising on next steps, including enforcement procedures if payment is not received.
|£100-£200 Excl *VAT
*The current rate of VAT is 20%.
When issuing a claim for money, the court issue fee is based on the amount claimed, including interest. These are set out below:
|Value of your claim
|Up to £300
|Greater than £300 but no more than £500
|Greater than £500 but no more than £1,000
|Greater than £1,000 but no more than £1,500
|Greater than £1,500 but no more than £3,000
|Greater than £3,000 but no more than £5,000
|Greater than £5,000 but no more than £10,000
|Greater than £200,000 or is not limited
|5% of the value of the claim
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 is needed to collect your debt.
Resolving debt recovery matters can take anything from a weeks, to many months, depending on the debtor’s approach. If enforcement action is needed, the matter will take longer to resolve.