In his latest Coffee Break Briefing webinar, Frettens’ own Insolvency Guru Malcolm Niekirk looked at dealing with solvent liquidations with no tax clearance.
This is the summary of that briefing.
How much does debt recovery cost?
You can see our estimated prices for debt recovery up to £100,000 outlined below.
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Each case is different, which is why we offer a free initial meeting to discuss your case. To arrange a free initial meeting, you can call us on 01202 499255.
Pre-action letter of claim
For all debt values up to £100,000 our fee is between £50 and £250 + VAT
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.
| Debt Value | Court Fee | Our Fee |
|---|---|---|
| Up to £10,000 | £25-£55 depending on the value of the claim | £750 to £1500 + VAT |
| £10,001 to £25,000 | 4.5% to 5% of the value of the claim | £1500-£2500 + VAT |
| £25,001 to £100,000 | 4.5% to 5% of the value of the claim | £2500-£5000 + VAT |
Anyone wishing to proceed with a debt recovery 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.
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 Acknowledgment 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 X days, providing you with advice on next steps and likely costs
