What are the fees for bringing a claim to recover a debt

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Our Fees

Our fees for a debt claim will depend on the amount being claimed and the complexity of the matter. Our fees are charged on a time spent hourly basis and such a claim would usually be dealt with by one the following members of our Dispute Resolution Team at their respective hourly rate (exclusive of VAT):

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• Sohaib Fatimi (Partner)                                                        £350.00 + VAT (£70) per hour Totaling £420.00 per hour

• Adris Tokhi (Senior Solicitor)                                                £300.00 + VAT (£60) per hour Totaling £360.00 per hour

• Nadia Farooqi (Consultant Solicitor)                                    £250.00 + VAT (£50) per hour Totaling £300.00 per hour

• Mariam Abed (Assistant Solicitor)                                        £200.00 + VAT £40) per hour Totaling £240.00 per hour

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Where a debt is claimed based on a clear written contract or agreement, the matter is likely to be dealt with by one of the more junior members of our Dispute Resolution Team. Where a debt is claimed based on a verbal or otherwise undocumented contract or agreement, the matter is likely to be dealt with by one of the more senior members of our Dispute Resolution Team.

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Below is an outline of the stages in any debt recovery matters:

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Debt Up to £50,000.00

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Stage 1:

• Take your instructions and give you initial advice

• Receive and advise on contract documents if applicable

• Carry out any due diligence on the debtor 

We estimate our fee range from £500 plus VAT (£100) Totalling £600.00 - £3,000 plus VAT (£600) Totalling £3,600.00 plus disbursements.

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Stage 2:

• Review any due diligence on the debtor

• Letter before action

• Reminder letter

• Final letter

• Pre-Action disclosure letter if applicable

We estimate our fee range from £1,000 plus VAT (£200) Totalling £1,200 - £5,000 plus VAT (£1,000) Totalling £6,000 plus disbursements

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Stage 3:

• Review and advice on any response from the debtor

• Carry out any updated due diligence on the debtor if applicable

• Obtain Counsel opinion if needed

• Consider any after the event insurance (ATE) if applicable

• Issue Court proceedings

• Prepare and serve all the necessary Court documents on the debtor

• Instruct process server if needed

We estimate our fee range from £2,000 plus VAT (£400) Totalling £2,400.00 - £10,000 plus VAT (£2,000) Totalling £12,000.00 plus disbursements

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Stage 4:

• Dealing with the debtor’s defence

• Complying with any Court Directions

• Case management conference

• Disclosure

• Witness statements

• Instructing Counsel

• Trial Preparation

• Making or responding to any interim applications if applicable

• Dealing with any ancillary work relevant to the matter

We estimate our fee range from £5,000 plus VAT (£1,000) Totaling £6,000.00 - £25,000 plus VAT (£5,000) Totalling £30,000.00 plus disbursements

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Stage 5:

• Pre-trial conference

• Attending Trial with the assistance of Counsel

• Assist you throughout the Trial

We estimate our fee range from £2,500 plus VAT (£500) Totalling £3,000.00 - £10,000 plus VAT (£2,000) Totalling £12,000.00 plus disbursements

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Stage 6:

• Explain the Judgement to you

• Initial advice on enforcement action

• Instruct enforcement agents

 

We estimate our fee range for this stage from £1,500.00 plus VAT (20%) Totalling £1,800.00 - up to £2,000 plus VAT (20%) Totalling £2,400.00 plus disbursements.

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The exact cost will be dependent upon the complexity of the matter, the amount in dispute, the level of Counsel dealing with the matter, dealing with any interim application, international element, the number of experts, the number of witnesses, the number of days listed for the Trial and the method of enforcement. Our experienced Dispute Resolution Team will provide you with expert advice throughout your matter. Your fee will reflect the time spent on the service, so where we spend more time on your matter, your costs will reflect the time spent to provide the service to you.

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Anyone wishing to proceed with a claim should note that:

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• 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 court cost

• The costs quoted above are not for matters where enforcement action, such as instructing a court bailiff, is needed to collect your debt.

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Our fee includes:

• Taking your instructions and reviewing your 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 Acknowledgement of Service or Defence is received, applying to the court to enter Judgment in default

• When Judgment in default is 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

• Any further work in line with the next steps advice is not included

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Simple debt collection usually takes 4 to 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, whether in response to a Letter Before Claim or on receipt of Judgment in Default. If enforcement action is needed, the matter will take longer to resolve.

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Disbursements you may be likely to pay include:

• Court fee – this will depend on the claim sum. The fee can be calculated on the Government website Fees in the Civil and Family Courts – main fees (EX50) - GOV.UK (www.gov.uk)

• Counsel’s estimate fee range from £1,000 plus VAT (£200) Totalling £1,200.00 – £10,000 plus VAT (£2000) Totalling £12,000.00 per day (depending on experience of the Counsel) – we will confirm the fee before the Counsel is instructed

• Expert report (s) if needed

• Background search estimated between £250 plus VAT (£50) Totaling £300.00 (if VAT applicable to £500 plus VAT (£100) Totaling £600.00 (if VAT applicable)

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