Debt Recovery

How much will the work cost?

We usually charge an hourly rate for our debt recovery services.  The hourly rates of your legal representative and those working on your matter will be provided to you at the outset of your instruction. Our current hourly rates are set out below and our charges are subject to VAT.

The level of our fees would be calculated by reference to the number of hours of work we have to undertake and the complexity of the claim. A simple debt claim where the debt is not disputed would require us to undertake a lot less work than a complex or high value debt that requires court proceedings. By way of guidance, we provide the average range of our fees in such claims below:

We may be able to agree fixed fees in some cases, where the debt is less than £10,000 and your instructions are limited to the pre-action stage. Where a fixed fee is agreed, our costs for drafting letter of claim will usually be between £200 to £800 + VAT.

Factors that could make a case more complex:

• The co-operation of the debtor and extent of action required
• The stage at which the matter is resolved
• Complex legal or factual points in dispute
• The volume of disclosure/documents for us to consider
• The number of witnesses
• The need for expert evidence
• Difficulty in tracing the debtors assets
• If it is necessary to make or defend applications which are not part of the standard procedure

What are Disbursements

• Disbursements are costs related to your matter that are payable to third parties, such as court fees, experts fees and counsel’s fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.

Which disbursements may apply to your matter

• If your debt recovery claim is disputed and court proceedings are required, you are likely to incur the following disbursements:
• Court fees  – The fees you need to pay at a court depend on your claim or case. You may have to pay multiple fees, for example a hearing fee and an application fee.
  • Issue fee – the The court fee is based on the amount you’re claiming, plus interest and may range from £35 (where the claim amount is up to £300) to £10,000 (where the claim amount is more than £200,000)
  • Hearing fee – the hearing fee will depend on the track that your claim has been allocated to and may range from £25 – £1090
  • Application fees – an application fee will only be incurred if a specific application is required in your case. The costs of the application vary based on the type of application and usually range form £50 – £255
• Counsel’s fees for attendance at trial – counsel’s fee will vary based on the complexity of your case and their seniority. The fees usually range from £2,000 to £10,000 + VAT, plus a daily refresher fee of £2,000 to £5,000 + VAT
• Counsel’s fees for advice or preparation of statements of case – £1,500 to £5,000 + VAT.

What we will do for you (Key stages)

Our fee includes:

• Taking your instructions, reviewing documentation and providing initial advice as to your options
• Sending a letter before action and dealing with pre-action correspondence
• Receiving payment and sending onto you where money is recovered
• Issuing court proceedings and preparing statements of case
• Reviewing and advising on the Defence
• Dealing with court directions, witness evidence and disclosure
• Instructing and reviewing expert evidence where necessary
• Dealing with negotiations and settlement offers
• Preparing for trial

What our fees will not include

• Enforcement action including the instruction of court bailiffs

How long will my matter take?

If the debtor does not dispute the debt and is cooperative, court proceedings may not be necessary and costs may be limited to pre-action correspondence. In such cases, your matter may take up to 6 months to conclude.

Where the case is contentious the cost and length of time to resolve the matter will be determined by the stage at which it is settled. In such cases, your matter may take up to 18 months to conclude if the case proceeds to trial.

Our team consists of qualified litigation solicitors, with vast experience in debt recovery. For full details of Raanan Berlad, Ed Turner and Noor Khan, please see their website pages.