Debt Recovery Fees

The information below is designed to help you estimate the likely costs involved. We will always provide you with an estimate at the outset based on the information you give us. However, we may need to revise the original estimate if the matter is more complex than first anticipated or if additional factors arise. We will keep you informed about progress, as well as any variation in fees or additional charges that may occur. All of our fees attract VAT at the current rate unless stated otherwise.

These costs apply only to undisputed unpaid invoices where enforcement is not required. If your claim is disputed, we will discuss the additional work involved and provide revised cost estimates. This may be a fixed fee (for example, a one-off letter) or charged at our hourly rate.

We do not take on debt recovery cases under £10,000.

Our fee is £275 per hour. On average, it takes around five hours to obtain judgment in default. The court fee is 5% of the debt claimed.

If the debt is paid after the initial letter before action, the cost is about £550 plus the court fee.
If the debt is paid after judgment in default, the cost is about £1,375 plus the court fee.

Please note:

• VAT on our fees cannot be reclaimed from the debtor.
• Interest and compensation may increase the debt and therefore the costs.
• These costs do not include enforcement action, such as using bailiffs.

What our fee covers:
✓ Reviewing your instructions and documents
✓ Carrying out relevant searches
✓ Sending a letter before action
✓ Receiving and forwarding payment, or if unpaid, issuing a claim
✓ Applying for judgment in default where no response is received
✓ Requesting payment once judgment is granted
✓ Advising you on next steps if payment is still not made

Timescales:
Debt recovery typically takes 4–18 weeks, depending on whether a court claim is required. If judgment in default is needed, the longer timeframe applies, assuming prompt payment once judgment is made.

If the other side files an Acknowledgment of Service or Defence, we will provide updated costs and timescales. These matters continue to be charged at £275 per hour.

Enforcement:
If enforcement is necessary, the case is transferred to the High Court. The court fee is £66 and enforcement usually takes about three hours (estimated fee £825). We will advise you on the most suitable enforcement method and provide a full breakdown of likely fees and third-party costs.