To help you understand the costs involved in Debt Recovery we have provided the price guide below based on the work typically involved at the different stages of the debt recovery process. The cost information provided below is general and we are very happy to discuss your individual situation with you and provide you with a more precise quote tailored to your specific circumstances so please do get in touch.
Letter Before Action
For straight forward debt recovery claims where an invoice has not been paid, we can write to the debtor requesting payment. This is known as a Letter Before Action and we offer a fixed fee for this service.
Our fixed fee depends on the value of the invoice as follows:
|Value within Invoice||Fixed Fee|
|Up to £1,000||£10 plus VAT|
|£1,000.01 – £5000||£25 plus VAT|
|£5,000.01 – £10,000||£40 plus VAT|
|Over £10,000||£50 plus VAT|
The typical timescale for issuing a Letter Before Action is 48 hours.
If your matter is more complex, we will be able to provide you with an estimate of the time and cost before proceeding.
There is a pre-action protocol for debt collection, which dictates that pre-action letters to individuals must give 30 days for a response, and 14 days for a company debt. After that period, if payment is not received, or a suitable offer for repayment received, you will be in a position to issue a Court claim against the debtor.
Issuing a court claim
If you do not receive a satisfactory outcome from the debtor at stage 1, you may wish us to issue a claim at Court.
We offer a fixed fee for issuing a straight forward debt claim for an unpaid invoice. Our fixed fee is made up of our time in preparing the claim form. You will also need to pay the court fee. The court fee payable depends on the value of the claim and the way it is issued. Typically we file via Secure Data Transfer (SDT) as this is cheaper.
|Value of the claim||Court fee payable if Court issued claim||Court fee payable if filed via SDT / MCOL*||Our fee|
|Up to £300||£35||£25||£100 + VAT|
|£300 – £500||£50||£35||£100 + VAT|
|£500 – £1000||£70||£60||£100 + VAT|
|£1000 – £1500||£80||£70||£160 + VAT|
|£1500 – £3000||£115||£105||£160 + VAT|
|£3000 – £5000||£205||£185||£160 + VAT|
|£5000 – £10,000||£455||£410||£160 + VAT|
|£10,000 – £100,000||5% of the value of the claim||4.5% of the value of the claim||£250 + VAT|
|£100,000 – £150,000||5% of the value of the claim||N/A||£300 + VAT|
|£150,000 – £200,000||5% of the value of the claim||N/A||£300 + VAT|
|Over £200,000||£10,000||N/A||£500 + VAT|
* SDT = Secure Data Transfer / MCOL = Money Claim Online
Only a certain percentage of the fees stated above are recoverable from your debtor and these are shown in the table below:
Fixed costs on commencement of a claim for the recovery of money or goods
|Relevant band||Where the claim form is served by the court or by any method other than personal service by the claimant||Where –
||Where there is more than one defendant, for each additional defendant personally served at separate addresses by the claimant|
We will be able to advise you if there are any other fees payable to the court as soon as we understand the particular details of your case.
If the claim becomes defended, hourly rates will apply and we will discuss likely costs and time involved accordingly. Further details on our hourly rates can be found in the Hourly Rate section below.
If your debtor fails to respond to the claim form, or responds with a suitable offer of repayment of the debt due, you are then in a position to apply for Judgment and the costs below will apply.
Fixed Costs on Entry of Judgment
|Where the amount of the judgment exceeds £25 but does not exceed £5,000||Where the amount of the judgment exceeds £5,000|
|Where judgment in default of an acknowledgment of service is entered under rule 12.4(1) (entry of judgment by request on claim for money only)||£22.00 + VAT||£30.00 + VAT|
|Where judgment in default of a defence is entered under rule 12.4(1) (entry of judgment by request on claim for money only)||£25.00 + VAT||£35.00 + VAT|
|Where judgment is entered under rule 14.4 (judgment on admission), or rule 14.5 (judgment on admission of part of claim) and claimant accepts the defendant’s proposal as to the manner of payment||£40.00 + VAT||£55.00 + VAT|
|Where judgment is entered under rule 14.4 (judgment on admission), or rule 14.5 (judgment on admission of part of claim) and court decides the date or time of payment||£55.00 + VAT||£70.00 + VAT|
|Where summary judgment is given under Part 24 or the court strikes out a defence under rule 3.4(2)(a), in either case, on application by a party||£175.00 + VAT||£210.00 + VAT|
|Where judgment is given on a claim for delivery of goods under a regulated agreement within the meaning of the Consumer Credit Act 19741 and no other entry in this table applies||£60.00 + VAT||£85.00 + VAT|
Should the debt remain outstanding after judgment has been obtained, there are several enforcement options to consider.
We will assess and advise the most appropriate route to take depending on the individual circumstances. Some of the options possible are outlined below.
|Action taken||Court fee||Our fee|
|Application for an order for a debtor to attend Court to provide information (to include Directors of Limited Companies)||£55||£80 plus VAT|
|To request Bailiff service of an order for a debtor or other person to attend Court to provide information||£110||No charge|
|Attachment of earnings order||£110 (a fee of 10p for every £, or part £1, of money paid into Court, is deducted from the money before it is paid out to the creditors)||£80 plus VAT|
|To transfer County Court Judgment to High Court||£66||£80 plus VAT|
|Writs (control possession or delivery of goods)||£66||£80 plus VAT|
|Charging order||£110||£250 plus VAT|
|Issue of a warrant of control via Money Claims Online or County Court Business Centre||£77||£80 plus VAT|
|Issue a warrant of control by other means||£110||£80 plus VAT|
|Issue a warrant for delivery of goods||£121||£80 plus VAT|
|Issue a warrant for possession||£121||£80 plus VAT|
|Request a further attempt to execute a warrant at a new address (except where a warrant has been suspended)||£33||Charged on an hourly rate basis|
|Third party debt order||£110||Charged on an hourly rate basis|
|Judgment Summons||£110||Charged on an hourly rate basis|
|Application for the enforcement of an award for a sum of money or other decision made by the Court||£44||Charged on an hourly rate basis|
We can also issue a statutory demand which is an option if there is a minimum debt of £750 owed by a company and a minimum of £5000 owed by an individual.
We charge a fixed fee for this as follows: £150 plus VAT
On top of this you will also need to pay the costs of a process server which are usually around £100.
Any work undertaken after the issue of the Statutory Demand will be chargeable at the hourly rate. For more details on our hourly rates, please see Hourly Rate section below.
A Statutory Demand claims the basic debt but if the demand is made by a limited company against a limited company, they can also claim interest, compensation and reasonable debt collection costs.
Our Hourly Rates
At Brindley Twist Tafft & James our legal fees are normally charged at an hourly rate. Our hourly rate ranges from £135 plus VAT per hour up to £250 plus VAT per hour. The rate is dependent on the experience of the lawyer in charge of the matter as follows:
John Ward – £250 plus VAT per hour.
John Ward is the head of the Litigation Department and also a Partner of BTTJ. He has 20 years of debt recovery experience and is also an accredited Mediator. John will typically lead on high value and complex matters.
Shannon Rixon – £146 plus VAT per hour
Shannon works under the supervision of John Ward and is currently a trainee solicitor.
Rachel Gennard – £135 plus VAT per hour
Rachel is CILEX qualified and deals with enforcement work. Rachel works under the supervision of John Ward.
Where we charge on an hourly basis, we will be able to give you an estimate of our costs when we first discuss the work with you. Whenever further work is required, we will always give you updated cost estimates and likely timescales involved and we will provide guidance on the most cost-effective options available.
We do not normally offer CFAs.
Please note that the VAT payable on our fee is not recoverable from your debtor if they are VAT registered.
You may also find that interest and compensation take the debt owed into a higher banding thus incurring higher costs.
If counsel is required we will advise you of the fees accordingly. Counsel fees vary depending on the complexity of the case and the seniority of counsel.
All of the information we have provided on costs above is a general guide so please do get in touch with us for a more precise and personalised quote based on your specific circumstances.