Introduction
Our highly experienced and knowledgeable debt recovery team understand the need to respond quickly and to take prompt action to secure payment of outstanding debts and offer a fast turn-around of papers, helping clients secure payment of monies owing to them.
Legal Fees
Legal Fees are the amount you will be required to pay for all the work performed by us in actioning your instructions from commencement of your case to conclusion. VAT will be payable on our fees and some disbursements, currently 20% and we will clearly confirm which disbursements carry VAT in our formal quotation or as we advise you to incur them.
We have set out below information you need to consider in relation to Legal Fees and disbursements for pursuing an undisputed debt of up to £100,000.
Our Legal Fees cover all of the work required to handle your case from instruction to conclusion.
- Letter Before Action – Free of charge
- Issuing of proceedings to include Claim Form and Particulars of Claim – 1–2 hours work at £160.00 + VAT per hour – total legal fees approx. £160.00 – £320.00 + VAT (£192.00 – £384.00 inc. VAT)
- Obtaining of Judgment – 1 hours work at £160.00 +VAT per hour (£192.00 inc. VAT)
- Enforcement of Judgment by way of Charging Order, Attachment of Earnings Order or other enforcement methods – 2 – 3 hours work at £160.00 + VAT per hour – total legal fees approx. £320.00 – £480.00 + VAT (£384.00 – £576.00 inc. VAT)
Telegraphic Transfer Fee – We charge £32.00 + VAT (£38.40 inc. VAT) per transfer.
The value and complexity of the matter alongside the stage at which the matter is resolved are factors that must be taken into account to confirm the fees in accordance with this scale.
If your matter is simple or low value we will discuss with you other fee options that may be available to ensure our fees are proportionate to the value of the debt.
If your matter becomes complex (see below) our fees may increase further and we will notify you in advance of any increased costs.
If at any stage our fees change, we will notify you and discuss the reason for any changes. This would typically occur if you change your instructions or your case involves an unforeseen complexity.
Our average fees assume that:
- The transaction is concluded in a timely manner and no unforeseen complication arise.
- All parties to the transaction are co-operative and there is no unreasonable delay from any parties providing documentation.
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.
What’s included:
Our fee includes:
- Taking your instructions and reviewing 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 Judgement in default
- When Judgement in default in 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
Our fees do not include:
- Court fees and any other expenses such as Counsel’s fees
- Issue of Insolvency proceedings such as issuing a winding-up petition or bankruptcy petition.
- Pursuing disputed debts
Disbursements and Other Costs
Disbursements may be incurred in the handling of the matter for you. In Debt Claims, fees tend to relate to Counsels’ fees and Court Fees.
- Courts Fees – The following link sets out the current court fees https://www.gov.uk/make-court-claim-for-money/court-fees. These are only necessary where we are required to issue a claim form via the court.
- Counsel fees – If Counsel is required to be instructed a quotation for their services will be obtained from them and discussed with you before they are instructed to ensure you are fully aware of the fees that will be charged. However, we have given examples of costs below:
The fees of a barrister vary depending on the experience of the advocate and their expertise. In our experience, the initial fee for a barrister and the first day of the hearing (known as the brief fee) will be in the region of £1,000 – £3,000 plus VAT (£1200 – £3600 Inc. VAT). Each subsequent day could be an additional £500 – £1,500 plus VAT (£600 – £1800 Inc. VAT).
If you want a very experienced barrister, then the cost is likely to be more. You may also incur additional charges such as travel costs for us to attend meetings and hearings.
Time Scales
Matters usually take 12 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 on receipt of Judgement in default. If enforcement action is needed, the matter will take longer to resolve.
Key Milestones
These are the typical steps we’ll take although individual circumstances differ.
- Take your instructions and review documentation
- Carry out appropriate searches
- Before action, issue a letter to request payment from the debtor
- Take payment and forward on to you
- Draft and issue a claim form to the relevant court for an unpaid debt
- Apply to the court to enter a Judgment in Default if the debtor fails to respond to court proceedings
- Request payment from the debtor where a Judgment in Default has been issued by the court
Factors That Could Make a Case More Complex
The following factors may make your case more complex and impact on your legal fees and disbursements: –
- The matter is defended
- Judgement is obtained and needs to be enforced for example
- Instruction of a Bailiff
- Attachment to earnings
- Making or defending a costs application
Should any of these factors occur we will notify you and discuss with you any increase in our legal fees or disbursements.
How long will my claim take?
Matters usually take 6-9 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 on receipt of the Judgment in default. If enforcement action is needed, the matter will take longer to resolve.
Fee Earners
We have several members of the team who may work on your matter. Regardless of who works on your matter, they will be supervised by Peter Hastings, Director and Head of Dispute Resolution. For more information on our team members, click here to see our team page.
Questions
If you have any questions relating to our services and our fees, please contact us on:
- Norwich 01603 666001
- Attleborough 01953 453774