RANGE OF FIXED COSTS FOR BUSINESS TO BUSINESS
DEBT – UNDISPUTED
COURT CLAIMS – UNDISPUTED DEBTS
The costs shown below apply where your claim is for an unpaid invoice which is not disputed and enforcement action is not needed.
STAGE 1 – LETTER OF CLAIM
Sending a Letter of Claim to the Debtor for an unpaid invoice, plus interest, and damages (if applicable). The timescale (provided the Debtor pays up promptly) is likely to be up to 2 weeks from receipt of instructions to receipt of payment.
STAGE 2 – ISSUE CLAIM IN COURT
Following service of a Letter of Claim on the Debtor and, where payment is not made, the next step is to issue a Claim Form in Court.
If the other party disputes your claim at any point, we will discuss any further work required and provide you with a revised estimate about costs if necessary, which could be on a Fixed Fee (if say the claim is quite modest), or an hourly rate if more extensive work is required.
EXAMPLES OF FACTORS MAKING A MATTER MORE COMPLEX
- Any limitation issues arise.
- There is a foreign element.
- There are any insolvency issues.
- The number of documents or the paperwork is not in order.
- Locating or difficulties identifying the Defendant.
- Defending Counterclaims.
- Making or defending any Cost Application to the Court.
COURT FEES AND FEES ESTIMATE
|DEBT VALUE||COURT FEE||OUR (ESTIMATED) FEES + VAT|
|£300.00 – £5,000.00||£25.00 – £205.00||£150.00 – £750.00|
|£5,001.00 – £10,000.00||£410.00 – £455.00||£295.00 – £950.00|
|£10,001.00 – £100,000.00||4.5% – 5% value of claim||£295.00 – £1,200.00|
|£100,001.00 – £200,000.00||5% – value of claim (cannot do online)||£295.00 – £1,500.00|
|More than £200,000.00||£10,000.00 (cannot do online)||£1,500.00 – £2,500.00|
- Court fees are set by HMCTS (Her Majesty’s Courts and Tribunals Service) and are reviewed / changed from time to time.
- Making a claim online means a lower fee is payable to the Court, but subject to restrictions.
- If the exact amount of the claim is not known, you should do a paper form claim.
NOTE: Anyone wishing to proceed with a claim should be aware that:
- The costs referred to above are not for cases where enforcement action (such as the use of the Court Bailiff) is needed to recover your debt.
- The VAT element of your fee cannot be reclaimed from your Debtor.
- Interest and damages / compensation may take the debt into a higher banding, with a higher Court fee and cost.
- You should check your Insurance Policies to see if you can benefit from Legal Expenses Insurance.
- Taking your instructions and reviewing documentation.
- Sending a Letter Before Action.
- Receiving payment and sending on to you, or if the debt is not paid, drafting and issuing claim.
- Where no Acknowledgement of Service of Defence is received, applying to the Court to enter Judgment in default.
- When Default Judgment is obtained, writing to the other party to seek payment.
- If payment is not received, say within 2 weeks, giving you advice on the next steps and the likely costs of these.
NB Undertaking appropriate searches will attract an additional fee.
LESS STRAIGHTFORWARD MATTERS
These usually take 2 – 12 weeks (or longer) from receipt of instructions, to receipt of payment from the Debtor. This will depend on whether it is necessary to issue a Court claim.
Following issue and service of Court proceedings and when Judgment has been obtained – enforcement action is needed, and the case will necessarily take longer to resolve and, the cost will be higher.
NOTE: Where Fixed Fees apply, we are able to offer our fees based on the size of the debt so that you will know the maximum cost to you in making a debt claim, whereas in a complex disputed debt claim, we can agree a fee with you based either on a Fixed Fee, or at our hourly charging rate.
For further information on the above, please contact Richard Pigula (Partner) on 01420 81275 or 01420 82879 or [email protected]