From 01 October 2017 the debt recovery process was updated. The process has been slowed slightly, and the person owed money is expected to take a more detailed and structured approach to the way in which they pursue recovery of their debt.
It is vital that you do not make a mistake during this process, and so we would encourage you to seek legal advice at the outset. There are various options ranging from statutory demands, winding up petitions, bankruptcy petitions, court proceedings or mediation. We will discuss the full range with you, explaining each in detail.
We offer a range of fee paying options, and these will be discussed with you during your initial consultation. Wherever we can, we try to offer our clients the choice of a fixed fee service or a 'no recovery no fee' service.
A debt recovery case – pursuing an individual
If your debt is owed to you by an individual or sole trader then you must ensure that you comply fully with the Pre-Action protocol for debt claims. If you don’t you may find yourself penalised. This means that your first official contact with the debtor must be detailed and accurate. The days of a single page debt recovery letter are well and truly gone.
We will review your case, speak with you, and prepare a protocol compliant letter before action on your behalf for a fixed fee of £250 + £50 VAT.
A debt recovery case – pursuing a limited company
If you are not dealing with a sole trader or individual, then the requirements of the Pre-Action Protocol are limited. As a result we might just need to review your case, speak with you and send a formal demand on your behalf in order to make clear that you intend to pursue the matter further.
We offer two options at this stage:-
|Written demand inc. late
payment interest & fees
|£125 + £25 VAT
|Full review, appointment,
and written demand as above
|£350 + £70 VAT
If your case requires more complex assistance from us then we will discuss and agree a fee with
Where available, the 'no recovery no fee' service covers only the work we do before issuing court proceedings. If we need to issue court proceedings and we later recover the debt, we might recover payment towards our costs by the defendant. We will receive this payment from the defendant as well as the ‘no win no fee’ payment from our client. The amount of work we do is entirely at our discretion.
Our fee is calculated as follows:-
|Our deducted fee
|£0 - £20,000
|£20,001 - £50,000
It might be necessary to incur dsibursements such as court fees as part of the process of recovering your debt. Here is a link to the gov.uk website
which sets out the expected court fees.
It may also be necessary to consider additional steps such as winding up petitions, bankruptcy proceedings, statutory declarations, and enforcement. These will all incur additional fees and disbursements which we will discuss with you and when the need arises.
Our lead debt recovery solicitor is Craig Welsby, assisted by Suzanne Blessington.