Our fee for undisputed debt recovery from Business to Business.

To discuss your specific debt recovery requirements, please contact us:

Telephone: 020 8367 3230

Email: sgl@martinshepherd.co.uk

Your matter will be dealt with by one of our 2 very experienced solicitors.

Spencer Lewis Solicitor

Their full profile is in the Our People section of this website.

These costs apply where your claim is in relation to an 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.

We do not accept instructions for debt recovery where the sum claimed is less than £10,000.

Our fee is based on an hourly rate of £250 plus VAT.

It will take an average of 5 hours to obtain judgment in default and the court fee is 5% of the sum claimed.

If payment is received after the initial letter before action you can expect to pay £500 plus VAT plus the court fee.

If payment is received after the judgment in default the fee is £1250 plus VAT plus the 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 bailiff, 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 to you, or if the debt is not paid, drafting and issuing a 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 in accordance with the judgment, providing you with advice on the next steps and likely costs.

How long will my debt recovery transaction take?

Matters usually take 4-18 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. The shortest time period is based on court proceedings not being required and the longest on obtaining the judgment in default. This is on the basis that the other side pays promptly on receipt of Judgement in default.

If an Acknowledgment of Service or a Defence is filed, we will be able to advise you of the likely costs for a defended claim and the timescales at that time. We will continue to charge you at an hourly rate of £250 plus VAT.

If enforcement action is needed, the matter will take longer to resolve. The matter will be transferred to the High Court for enforcement for which there is a court fee of £66 and the time to enforce is an average of 3 hours and the fee will be in the region of £750 plus VAT. We will be able to advise you of the most appropriate enforcement at the time and provide you with an estimate of our fee and the court fees and disbursements involved (payments to 3rd parties).

To discuss your specific debt recovery requirements, please contact us:

Telephone: 020 8367 3230
Email: ctb@martinshepherd.co.uk

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