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
    1. Any limitation issues arise.
    2. There is a foreign element.
    3. There are any insolvency issues.
    4. The number of documents or the paperwork is not in order.
    5. Locating or difficulties identifying the Defendant.
    6. Defending Counterclaims.
    7. 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
NOTE:
    1. Court fees are set by HMCTS (Her Majesty’s Courts and Tribunals Service) and are reviewed / changed from time to time.
    2. Making a claim online means a lower fee is payable to the Court, but subject to restrictions.
    3. 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:
    1. 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.
    2. The VAT element of your fee cannot be reclaimed from your Debtor.
    3. Interest and damages / compensation may take the debt into a higher banding, with a higher Court fee and cost.
    4. You should check your Insurance Policies to see if you can benefit from Legal Expenses Insurance.
OUR FEE

This includes:

    1. Taking your instructions and reviewing documentation.
    2. Sending a Letter Before Action.
    3. Receiving payment and sending on to you, or if the debt is not paid, drafting and issuing claim.
    4. Where no Acknowledgement of Service of Defence is received, applying to the Court to enter Judgment in default.
    5. When Default Judgment is obtained, writing to the other party to seek payment.
    6. 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]

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