Debt recovery - fixed price legal services

At Bond Solicitors our experienced team provide a low cost, reliable and effective debt collection solution and we cover all debts owed in excess of £3,000. For more information about our debt recovery service call 0207 305 7311.

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You can instruct our debt recovery team to send out a letter before action by emailing enquires@bondsolicitors.com. We guarantee to send a letter before action within 48 hours of instruction (subject to payment and receipt of details).

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Should further action be required our solicitors can help you every step of the way, whether issuing legal proceedings or even bankruptcy and winding up proceedings. For more information please do not hesitate to contact us. 

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Debt recovery prices?

The cost of a debt recovery solicitor or specialist commercial debt collection team can vary, depending on the individual circumstances involved. If the debt isn’t disputed and no enforcement action is needed, the costs will be lower than when a debt dispute arises, and more legal work is required.

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The below debt recovery costs apply where your claim relates to an unpaid invoice or invoices which are 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 which might be on a fixed fee or an hourly rate. The fixed fees set out below do not include giving you any advice about your claim. Related third party costs, as detailed below, may also be payable for specific services. If so requested, we will always be pleased to provide estimates based on the specific circumstances.

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Stage 1 - pre action

Letter before action

Is it a company debt or individual/sole trader?

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Company: letter before action: £250 plus VAT

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Individual/sole trader: letter of claim: £250 plus VAT

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International: letter before action: £300 plus VAT

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Letters before action sent to companies usually require the debtor to pay within 14 days, but letters to individuals provide for a 30 day period in accordance with guidelines laid down by the court and the time limit for payment in international letters before action may vary.

 

Pre action debt recovery and assistance

We can assist you in corresponding with your debtor to resolve disputes and recover your debt without the need for legal action. We offer fixed fees at each stage of this process, which might involve a second letter demanding payment or lengthy negotiations to reach a Settlement Agreement or repayment plan.

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Fixed fees for pre action assistance

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Second letter of demand: £225 plus VAT

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Review and advice on response received from debtor: £200 plus VAT

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Preparing detailed reply to debtor and final demand or offer of settlement: £295 plus VAT

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Negotiating settlement/instalment plans: £250 per hour plus VAT

 

Drafting settlement agreement: Fixed Price £150 plus VAT

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Pre action advice on recovery

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We offer a fixed fee service to review your invoices and contract and advise you on the most effective method of recovery; the options available to you; pre action protocol requirements and your right to receive interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998.

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Our fixed fee for this service is £350 plus VAT.

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Stage 2 - court action

Court claims - issue claim

Debt                          Court fee                  Bond Solicitors' fee

£3,000 - £5,000         £205                          £400 plus VAT

£5,000 - £10,000       £455                          £500 plus VAT

£10,000 - £200,000   5% of claim              £800 plus VAT

   

Anyone wishing to proceed with a claim should note that interest and compensation may take the debt into a higher banding with a higher cost

 

Once the court has served the claim a debtor has 14 days in which to file a defence or enter an acknowledgement. After the 14 day period has expired a request can be made to the court for judgment to be entered providing the debtor has not filed an acknowledgement or a defence.

 

Request judgment - £95 plus VAT

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If judgment is obtained but not paid then further action will be required to enforce payment.

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Timescale: It usually takes the court about 10 working days to enter judgment following receipt of a request to enter judgment.

 

Additional services if necessary

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Stage 3: enforcement

Once judgment has been obtained, enforcement action may be needed to recover the sums awarded by the court.

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We will write to the debtor demanding payment of the judgment debt and where appropriate inform the debtor of the enforcement action to be taken if payment is not made.

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Our fees for these initial letters are:

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Letter demanding payment of judgment: £200 plus VAT

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Letter to company debtor warning of intention to present winding up petition: £225 plus VAT

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If you require a detailed advice on the enforcement options available to you we will provide that advice for a fixed fee of £200 plus VAT.

 

Enforcement proceedings

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Writ of control - £250 plus VAT otherwise known as instructing a High Court Enforcement Officer to seize goods in satisfaction

 

Related third party costs

• Court fee - £66

• HCEO fee - £90 payable if the warrant is not successful

 

Timescale: A writ of control may be applied for once judgment has been obtained but whether or not any recovery will be made depends on the debtor’s ability to pay and whether there are any assets which may be seized and whether a repayment agreement is entered into.  A typical enforcement by writ of control may take about 8-12 weeks from instruction. If we are required to enter into correspondence about the enforcement then the matter will no longer be treated as a fixed fee enforcement and additional charges will apply based on the applicable hourly rate set out in our retainer letter to you.

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Warrant of execution - £250 plus VAT

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Related third party costs

• Court fee - £110

 

Timescale: A warrant of execution may be applied for once judgment has been obtained but whether or not any recovery will be made depends on the debtor’s ability to pay and whether there are any assets which may be seized and whether a repayment agreement is entered into.  A typical enforcement may take about 8-12 weeks from instruction. If we are required to enter into correspondence about the enforcement then the matter will no longer be treated as a fixed fee enforcement and additional charges will apply. These charges will be based on an hourly rate set out in our retainer letter to you.

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Attachment of earnings - £500 plus VAT

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This is applicable in cases where the attachment of earnings is obtained without a hearing or further applications/revisions to deal with debtors who have not been found or their employment has changed. 

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Related third party costs

• Court fee - £110

 

Time scale: An attachment of earnings order can sometimes be obtained within about 6-8 weeks of the application for an attachment of earnings order being issued by the court.

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Charging order - £900 plus VAT (excluding hearing)

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Related third party costs

• Court fee - £110

• Agent’s fee for attendance at court if necessary - depends on location

• Registration of charging order - £40

• Search fee - £11 plus VAT

 

Time scale: An interim charging order can sometimes be obtained within about 2-3 weeks of application being made to court.  The timescale for the final charging order will depend upon whether the debtor files an objection and if the Court lists the case for a hearing.  Without any objections or a hearing it would be a further 4-6 weeks.

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Third party debt order - £950 plus VAT

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Related third party costs

• Court fee - £110

• Agents fee for hearing - depends on location

 

Time scale: A third party debt order can sometimes be obtained within about 8-12 weeks of the application being issued by the court.

 

Order that debtor attends court for questioning/oral examination - £700 plus VAT

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Related third party costs

• Court fee - £55

• Agent fee for hearing if required - depends on location

• Process server - depends on location

 

Time scale: The debtor will usually be required to attend court for questioning within about 8-12 weeks of the application being made.

Insolvency proceedings

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Issue of statutory demand for companies and individuals - £900 plus VAT

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Related third party costs

• Process server fee - depends on location

 

Timescale: A statutory demand should only be made where the debt is not disputed for example where there is a judgment or an admission that the debt is due. A statutory demand can be prepared on receipt of instructions and is then usually sent to a process server for personal service. Personal service generally takes about 1-2 weeks via a process server.

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Bankruptcy proceedings - £2,000 plus VAT

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This is applicable to cases where the matter is determined at the first hearing, there are no issues with regards to service and is only applicable in cases whereby the debt is not disputed or if a court judgment has been obtained which has not been set aside or appealed.  

 

Related third party costs

• Process server - depends on location

• Court fee - £280

• Deposit - £990

• Agent for hearing - depends on location

• Search fee - £11 plus VAT

 

Time scale: A bankruptcy order can usually be obtained within about 8-12 weeks of the petition being issued by the court.

 

Company winding up - £2,000 plus VAT

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This is applicable to cases where the matter is determined at the first hearing and is only applicable in cases whereby the debt is not disputed or if a court judgment has been obtained which has not been set aside or appealed.

 

Related third party costs

• Court fee - £280

• Petition deposit - £1,600

• Process server - depends on location

• Agent fees for hearing- depends on location

• Advertisement in London Gazette - £101.52

 

Time scale: A winding up order can usually be obtained within about 8-12 weeks of the petition being issued by the court.

 

What qualifications do the team hold?

All debt recovery work is supervised by a qualified solicitor. Specific experience can be seen in the individual staff profiles, as required.

 

If you want more information about how our commercial debt recovery solicitors can help you, please get in touch.

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