Debt Recover

Value Added Tax (VAT)

VAT @ 20% has to be added to our fees and some expenses or disbursements.

Michael Sawali’s is a Solicitor and head of our firm’s litigation department and his hourly rate is £250.00 per hour plus vat.

In addition to legal costs, disbursements (expenses) will also need to be paid. Usually, these will be Counsel’s fees, Court fees and in some cases experts fees.

Court fees payable can be found in the attached and dependant on the claim value please see link

It is difficult to provide an accurate cost for Counsel fees but as an indication these will vary from £500 plus vat up to £10,000 plus vat and we will advise you in advance of the costs during your case.

Court claims 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.

Anyone wishing to proceed with a 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 14 to 21 days, providing you with advice on next steps and likely costs

Matters usually take 10-20 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgement in default. If enforcement action is needed, the matter will take longer to resolve.

Not included in our fees:

  • assisting with any appeals 
  • taking instructions from expert witnesses 
  • any additional hearings 
  • challenging decisions   

Small claims debts up to £10,000.00

Our range of costs will be between £2,000.00 – £5,000.00 plus vat and we estimate this will take approximately 8 to 20 hours. This will include charges for obtaining instructions to the pre action correspondence to preparing Claim Form, to dealing with directions questionnaire and small claims mediation, to preparing witness statements and proceeding to small claims hearing.

Debt claims from £10,000.00 to £25,000.00

These claims will be placed in the fast track list. Fast Track is usually used where there are more complicated issues to be decided. Fast track trials will generally take no more than one day. Our range of costs will be between £5,000.00 – £10,000.00 plus vat and disbursements and we estimate this will take approximately 20 to 40 hours

Debt matters over £25,000.00

These claims will be placed in the multi-track list. Multi Track and enables the Court to decide how to deal with cases in the most suitable way according to the needs of that case. Our range of costs will be between £15,000.00 – £30,000.00 plus vat and disbursements and we estimate this will take approximately 60 to 120 hours

The key stages to Court procedures are as follows:-

  • Pre action stages where instructions and evidence is obtained from the client and typically a letter before claim will be written giving the debtor an opportunity to pay say within 14 to 21 days. If a payment is not received in this time period, then a Claim Form will be prepared.
  • Once the Claim Form is prepared, the Court will issue and serve upon the Debtor.
  • The Debtor will have 14 days within which to acknowledge and 14 days thereafter to file Defence/Counterclaim.
  • In a Small Claims matter, upon receipt of Defence, the matter will be case managed with directions, typically a direction for mediation through the Court service. If mediation fails, the matter will be listed for Trial. Typically, a Small Claims Trial will be heard within 9 – 12 months from the issue of Claim Form.
  • In Fast Track and Multi Track cases, following receipt of a Defence/Counterclaim, the matter will be listed for Costs and Case Management Conference when the Court will case manage and provide directions. Directions will typically include disclosure of documents, witness statements and provision of any expert that may be required. Thereafter the matter will be listed for Trial. Typically, Fast Track matters will usually be dealt with within 1 year, Multi Track matters can take up to 1 to 2 years