We are always happy to let you have a “no obligation” quote based on your specific requirements. Please contact us at tf@bbelaw.co.uk and we will come back to you. Alternatively, please call us on 01253 362500 and ask to speak to Tim Fielding to discuss your requirements.
Debt recovery
We do not offer a fixed fee service for debt recovery. Our charges are on a time recorded basis.
We charge £250 plus VAT at 20% (£300) per hour and disbursements including land registry search fees (£3.00 each) for the initial pre-action correspondence.
If proceedings are required, then we will continue to charge £250 plus VAT at 20% (£300) per hour and court fees to prepare and issue a money claim and to enter a default judgment.
Average costs will vary as the court fee depends upon the value of claim being brought. Subject to that qualification on average you can expect to pay between £750 plus VAT at 20% (£900) and £1500 plus VAT at 20% (£1800) plus the applicable court fee (normally 5p in every £1 claimed but see below for the full list of applicable fees) to secure a default judgment. The court fee paid and fixed cost of around £100 (no vat) will be added to the amount to be paid.
If the case is defended, we will continue to charge costs on a time recorded basis at an hourly charge-out rate of £250 plus vat at 20% (£300) per hour and disbursements which may include counsel’s fees.
Average costs here vary dramatically because much depends upon the value of the claim, the nature of the dispute and where your case is allocated ie to small claims, the fast track or the multi-track.
For illustrative purposes:
The average small claims trial might cost £3,000, fast track trial £7,500 to £15,000 and a multi-track trial £25,000 to £50,000.
All charges above are exclusive of Court Fees and VAT at 20%.
Stages of Debt work and typical timescales
- 1. Letters before action sent to companies usually require the debtor to pay within 14 days, but letters to individuals provide for a 30-day period in accordance with guidelines laid down by the court and the time limit for payment in international letters before action may vary.
- 2. Court claims – issue claim. Anyone wishing to proceed with a claim should note that interest and fixed fee compensation may take the debt into a higher banding with a higher cost. Once the court has served the claim a debtor has 14 days in which to file a defence or enter an acknowledgement. After the 14-day period has expired a request can be made to the court for judgment to be entered providing the debtor has not filed an acknowledgement or a defence.
Court Issue Fees
| Debt | |
| Up to £300 | |
| £300 - £500 | |
| £500 - £1,000 | |
| £1,000 - £1,500 | |
| £1,500 - £3,000 | |
| £3,000 - £5,000 | |
| £5,000 - £10,000 | |
| £10,000 - £200,000 |
- 3. Request judgment If judgment is obtained but not paid then further action will be required to enforce payment.
- Timescale: It usually takes the court about 10 working days to enter judgment following receipt of a request to enter judgment.
Additional Disbursements Payable
Hearing Fee (Small Claim Track)
| Debt | |
| Up to £300 | |
| £300.01 - £500 | |
| £500.01 - £1,000 | |
| £1,000.01 - £1,500 | |
| £1,500.01 - £3,000 | |
| more than £3,000 |
Hearing Fee: Fast Track Claim £545
Hearing Fee: Multi Track Claim £1,090
Additional Services If Necessary
Enforcement costs will vary depending on what form of enforcement you instruct us to undertake on your behalf.
As a guide, our fees for this stage of the process will likely be between £500 and £1,000 plus VAT at 20%.
Disbursements and time scales will vary depending on the process being undertaken.
a. Writ of Control – otherwise known as instructing a High Court Enforcement Officer to seize goods in satisfaction
- Related third party costs
- Court fee – £66
- HCEO fee – £90 payable if the warrant is not successful
Timescale: A Writ of Control may be applied for once judgment has been obtained but whether or not any recovery will be made depends on the debtor’s ability to pay and whether there are any assets which may be seized and whether a repayment agreement is entered into. A typical enforcement by Writ of Control may take about 8-12 weeks from instruction. If we are required to enter into correspondence about the enforcement then the matter will no longer be treated as a fixed fee enforcement and additional charges will apply based on the applicable hourly rate set out in our retainer letter to you.
b. Warrant of Control (recovery of a sum of money)
- Related third party costs
- Court fee – £110
Timescale: A Warrant of Control may be applied for once judgment has been obtained but whether or not any recovery will be made depends on the debtor’s ability to pay and whether there are any assets which may be seized and whether a repayment agreement is entered into. A typical enforcement may take about 8-12 weeks from instruction. If we are required to enter into correspondence about the enforcement then the matter will no longer be treated as a fixed fee enforcement and additional charges will apply. These charges will be based on an hourly rate set out in our retainer letter to you.
c. Issue of statutory demand for companies and individuals
- Related third party costs
- Process server fee – up to £150 plus VAT
Timescale: A statutory demand should only be made where the debt is not disputed for example where there is a judgment or an admission that the debt is due as otherwise costs may be incurred in dealing with a challenge to your use of the procedure. A statutory demand can be prepared on receipt of instructions and is then usually sent to a process server for personal service. Personal service generally takes about 2-3 weeks via a process server.
d. Bankruptcy proceedings
This is applicable to cases where the matter is determined at the first hearing, there are no issues with regards to service and is only applicable in cases whereby the debt is not disputed or if a court judgment has been obtained which has not been set aside or appealed.
- Related third party costs
- Process server – up to £150 plus VAT
- Court fee – £280
- Deposit – £990
- Agent for hearing – depends on location
- Search fee – £11
Time scale: A bankruptcy order can usually be obtained within about 8-12 weeks of the petition being issued by the court.
e. Winding up
This is applicable to cases where the matter is determined at the first hearing and is only applicable in cases whereby the debt is not disputed or if a Court judgment has been obtained which has not been set aside or appealed.
- Related third party costs
- Court fee – £280
- Petition deposit – £1,600
- Process server – up to £150 plus VAT at 20%
- Agent fees for hearing- depends on location
- Advertisement in London Gazette – £111.18 plus vat at 20%
Time scale: A winding up order can usually be obtained within about 8-12 weeks of the petition being issued by the court.
f. Attachment of Earnings Order
This is applicable in cases where the attachment of earnings is obtained without a hearing or further applications/revision to deal with debtors who have not been found or their employment has changed.
- Related third party costs
- Court fee – £110
Time scale: An attachment of earnings order can sometimes be obtained within about 6-8 weeks of the application for an attachment of earnings order being issued by the court.
g. Charging Order
- Related third party costs
- Court fee – £110
- Agent’s fee for attendance at court if necessary – depends on location
- Registration of charging order – £40 (no vat)
- Search fee – £11 (no vat)
Time scale: An interim charging order can sometimes be obtained within about 2-3 weeks of application being made to court. The timescale for the final charging order will depend upon whether the debtor files an objection and if the Court lists the case for a hearing. Without any objections or a hearing, it would be a further 4-6 weeks.
h. Third Party Debt Order
- Related third party costs
- Court fee – £110
- Agents fee for hearing – depends on location
Time scale: A third party debt order can sometimes be obtained within about 8-12 weeks of the application being issued by the court.
i. Third Party Debt Order
- Related third party costs
- Court fee – £55
- Agent fee for hearing if required – depends on location
- Process server – up to £150 plus VAT at 20%
Time scale: The debtor will usually be required to attend court for questioning within about 8-12 weeks of the application being made.