In our experience the likely costs for pursuing a debt that is not in dispute will be as follows:
Debt up to £5,000: £500 – £1,000 plus VAT
Debt between £5,001 to £10,000: £600 – £1,500 plus VAT
Debt between £10,001 to £100,000: £1,000 – £4,500 plus VAT
- VAT on your fees will not usually be recoverable from the debtor unless you are not VAT registered
- Any claim for interest may take the debt into a higher banding of legal costs and court fees
- If enforcement action is required we will discuss with you the most suitable enforcement action and provide a fee estimate which will be in addition to the costs set out above. All means of enforcement involving the court will incur an additional court fee.
We may be able to agree a fixed fee to pursue a debt for greater clarity on the cost to be incurred.
Our hourly rates range from £100 to £240 (plus VAT) based on level of qualification and experience.
We will provide you with a fee estimate or a fixed fee depending on the value and complexity of your case. Your work will be allocated to the most cost effective team member with the appropriate experience.
Disbursements are costs related to your matter that are payable to third parties. We handle the payment of the disbursements on your behalf.
If court proceedings need to be issued, a court fee will be payable in addition to our charges. Details can be found on the following link:
What may impact on the level of fees and expenses?
It is presumed that the debt being pursued is not in dispute. Many cases appear simple at first but on closer inspection, or having received a response from the debtor, may be more complex to resolve.
Factors which could affect the overall costs include:
- Multiple claims which can be administered together may reduce overall costs
- The debtor pays very promptly upon action being taken
- Lengthy negotiations with the debtor
- The debtor makes an application to the court for more time to pay the debt due
- The debtor enters into a form of insolvency
- The court decides on a payment plan which is unacceptable to you and you instruct us to apply to the court to review the decision
- An application to set aside a Default Judgment is made
- Any competing claim or off-set which the debtor wishes to pursue against you
This is an illustration only. The work carried out will be tailored to your specific needs and set out in a Confirmation of Instructions document.
Key Stages – Undisputed Debt: what will Raworths do for you?
Most undisputed debt recovery claims include the following steps:
- Taking your initial instructions
- Reviewing documentation which may include invoices, terms and conditions and other contractual documents
- Calculating your claim including a claim for interest
- Undertaking any appropriate searches
- Agreeing with you a Letter of Claim
- Communicating with the debtor and you if payment is made upon receipt of the Letter of Claim
- In the event of non-payment, taking your instructions on whether to issue legal proceedings
- Preparing to issue the proceedings including a Claim Form and Particulars of Claim
- Entering a Default Judgment in the event that there is no Acknowledgement of Service or Defence filed
- In the event of a default judgment being obtained, writing to the debtor seeking payment
- If payment is still not received, advising you as to the next steps to enforce the debt including additional costs
In some cases as an alternative to pursuing a debt through the traditional Courts or High Court route as outlined above, an effective way of pursing a debt may be by issuing a Statutory Demand leading to a possible Bankruptcy Petition if the debt is owed by an individual or a Winding-Up Petition for a debt owed by a company.