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Fees for Debt Recovery

Fees for Debt recovery

For business to business debt that is undisputed

Court claims

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.

Up to £5,000Court fees are based on a sliding scale depending on the value of our debt and range between £35 for a debt
of up to £300 and £500 for a £10,000 debt.
£5,001 – £10,000 £150£750
£10,001 – £25,0005% value of the claim £200£1,000
£25,000 – £100,0005% value of the claim £250£1,500

If the debtor pays after receiving our letter, or you decide not to take the matter further, our pre-action fee only is payable.  If you ask us to issue court proceedings, the post-issue fee will be payable in addition.

Interest and compensation (e.g. pursuant to the Late Payment of Commercial Debts (Interest) Act 1998 or the contract) may take the debt into a higher banding, with a higher cost.

Our fee for pre-action work includes:

  • Taking your instructions, reviewing documentation and advising you
  • Undertaking appropriate searches
  • Sending a letter before action
  • Receiving payment and sending on to you

Our fee for post issue work includes:

  • Drafting and issuing the claim form and particulars of claim
  • Where no acknowledgment of service or defence is received, applying to the court to enter judgment in default (i.e. a CCJ)
  • When judgment in default in received, write to the other side to request payment
  • If payment is not received within 14 days of judgment, providing you with advice on next steps and likely costs thereafter


Matters can take 6-8 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. Time scales can also change depending on the external factors such as how busy a particular court is. This time estimate is also on the basis that the other side pays promptly on receipt of Judgment in default. If enforcement action is needed, the matter will take longer to resolve.

Service of a statutory demand (i.e. the first step in insolvency proceedings) is an alternative to a letter before action and court proceedings.  The cost of a statutory demand for an undisputed contractual debt with a value of up to £100,000 is £600 plus VAT, which is in addition to service agents if required (which are usually around £100 – £150).  The cost of taking the subsequent step of issuing a bankruptcy or winding up petition for this kind of claim is likely to be around £1,500 – £2,000 plus VAT.

The fees cited above may be lower per debt if we are instructed to pursue “bulk” debts (e.g. to collect all book debts owing to a company) and would need to be discussed with us on an ad hoc basis.

Our debt recovery is dealt with by David Richards (Partner). Full details of David can be found on “Our People” page.

The information given here is general, and you will give precise and more personalised information when you contact us directly with regard to your specific circumstances and debt recovery matter. You should only rely on the information given to you personally in our engagement letter with our details and estimate of the costs rather than the more general information you have seen on our website or elsewhere on the subject of our costs.


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