Debt Claims Pricing
Debt recovery up to the value of £100,000
Fixed fees for a business-to-business debt that is undisputed
Depending on the nature of your legal issue, our charges for this type of work, up to a claim value of £100,000, are on the basis of fixed fees.
Detailed below are our fixed fee charges that will apply when your case for the recovery of an unpaid invoice is not disputed by another party, and enforcement proceedings are not necessary. These fixed fees only relate to business-to-business debt claims, which are undisputed. Undisputed means that another party accepts that the debt is owed but is not able to pay an unpaid invoice.
In some cases, the other party may dispute that they owe you the money. If your claim is disputed, then our fixed fees will not apply, and we will discuss with you your case in detail, the implications, and costs, to help you decide how you wish to move your case forward.
Stage 1
Following your initial call to our offices, you will be first offered a ‘Stage 1’ Package. This package includes the following from an experienced member of our litigation team:
- A preliminary call with you to take your instructions.
- Perusal and consideration of the relevant documentation relating to your case.
- Holding either a meeting to advise you, or us providing a letter of advice instead.
- An insolvency check on the debtor.
- Preparation of a Letter Before Action.
| Claim Value | Our Fee (inc. 20% VAT) |
| Up to £3,500.00 | £450.00 (£540.00) |
| £3,5001.00 - £5,000.00 | £600.00 (£720.00) |
| £5,001.00 upwards | £750.00 (£900.00) |
Stage 2
If no response is received following our letter being sent under Stage 1, the next step in your case will likely be to issue court proceedings. We will still offer you a fixed fee for the issuing of court proceedings, which are in addition to Stage 1 costs above. You will also be liable at this stage for a court disbursement fee. This is set by the court.
Under Stage 2, a member of our experienced litigation team will undertake the following tasks on your behalf:
- In consultation with you, drafting and filing a Claim Form and Particulars of Claim at Court.
- If your debtor does not provide a response (Acknowledgement of Service), preparing and filing an application to the Court to enter Judgment in default.
- Once a default Judgment is received, writing to your debtor to request payment.
- If payment is not received within 30 days of receipt of the letter requesting payment, providing you with a letter of advice on the potential next steps and costs.
| Claim Value | Court Fee | Our fee (inc. 20% VAT) | Total (inc. 20% VAT) |
| Up to £999.00 | Up to £70.00 | £200.00 (£240.00) | £270.00 (£310.00) |
| £1,000.00 - £1,499.00 | £80.00 | £225.00 (£270.00) | £305.00 (£350.00) |
| £1,500.00 - £2,999.00 | £115.00 | £250.00 (£300.00) | £365.00 (£415.00) |
| £3,000.00 - £4,999.00 | £205.00 | £325.00 (£390.00) | £530.00 (£595.00) |
| £5,000.00 - £9,999.00 | £455.00 | £400.00 (£480.00) | £855.00 (£935.00) |
| £10,000.00 - £24,999.00 | 5% of the value of the claim | 5% of the value of the claim | Dependent upon the value of the claim |
| £25,000.00 upwards | 5% of the value of the claim | 5% of the value of the claim - starting from £1,250.00 | Dependent upon the value of the claim |
If you are required to issue court proceedings to recover your unpaid invoice, you should be aware that:
- It is unlikely you will be able to recover the VAT element of our fee from your debtor.
- When we undertake interest and compensation calculations, this may take your claim into a higher fixed fee category.
- You may not always be successful in recovering your full legal costs from your debtor.
- If your debtor still fails to make payment following a Judgment being made against them, you may decide to take enforcement action, which is not included in the above fixed fee estimate.
Timescales for undisputed claims
Timescales will vary depending on the response provided by your debtor. We would usually anticipate that matters could be concluded within 6 months following receipt of instructions. This timescale works on the basis that your claim is undisputed, and payment is recovered promptly from your debtor. We will continue to keep you up to date on timescales during your matter.
Defended Claims
A debtor may defend your claim if they dispute that they owe you all or part of the money that you are claiming from them. If your claim is disputed, then your case will fall outside of the fixed fee tables as referred above, and you will be charged for the time that we spend working on your case. Our rates will vary depending on the experience of the person undertaking the work.
Our average hourly charging-rate is £225.00 per hour + 20% VAT, which will vary depending on the level and experience of the fee earner that undertakes the work. Our hourly rates currently range from £200.00 per hour + 20% VAT to £250.00 per hour + 20% VAT, which are subject to change from time to time.
Timescales for disputed claims
If the debtor defends your claim and court proceedings are issued, your case may take at least 12 to 18 months to conclude. Timescales will vary depending on responses from your debtor, and importantly, court availability. Rest assured we will continue to keep you up to date and resolve your claim as quickly and as efficiently as possible.
What our fees do not include
Our fees do not include any external costs and charges that may be incurred as part of the process (e.g. damages, fines, penalties or other liabilities). You will incur further costs if the sum is not paid, and enforcement action is required.
In some cases, we are required to incur disbursements (additional costs) on your behalf. This could include the instruction of an expert or barrister. Before we incur any additional disbursements on your behalf, we will seek your approval of the same. You will be responsible for these items.
The people involved in debt claims
You can find out more about the range of services that we offer and the team who can help you by visiting our Employment & Litigation, and Commercial pages.
How long will it take?
How long matters take will depend on a number of factors but in simple cases, the matter should be concluded within 6 months. If enforcement action is required, this will lengthen the process, and may vary depending on which steps you wish to take.
Every situation is different. We would be delighted to discuss your specific requirements. Please call us on 01626 772441, email us at law@scottrichards.co.uk or via get in touch our contact form for more details.
