Fees

The fees below are cumulative and apply where your claim is in relation to a business debt of up to £100,000 which is not disputed, and enforcement action is not needed. For details of our charges where the other party disputes your claim at any point or where the business debt exceeds £100,000, please call us on 0161 696 3520 and ask to speak to a member of our Debt Recovery team for further details about our charges (which could be on a fixed fee, or an hourly rate basis) and applicable hourly rates.

‍

VAT

Our fees are quoted exclusive of VAT which will be applied at the applicable rate (currently 20%).

‍

Stage 1:  Letters of claim – pre-litigation

Prior to issuing court proceedings, we will draft a letter of claim which is a formal demand for payment from the debtor.

We charge a fixed fee for taking your instructions and preparing a letter of claim of £500 plus VAT (currently at 20%).

‍

How long will it take?

Where we send a letter of claim to a business, we would usually demand a response within 7 days. Where we send a letter of claim to an individual, we would usually demand a response within 30 days. However, any action that we take will be discussed with you and the letter of claim will be tailored to the individual requirements of each client and the circumstances relating to each matter.

‍

Stage 2: Court claims

Where the debtor has not paid the debt in response to the letter of claim, the next step would be to issue court proceedings for the recovery of the debt. Where court proceedings are required then the following table of fees will be applied:

Anyone wishing to proceed with a claim should note that:

• The VAT element of our fee cannot be reclaimed from the debtor.

• Interest and compensation may take the debt into a higher banding, with a higher cost.

• The fees quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.

• The debt to be collected is within England and Wales.

‍

Our fees include:

• Taking your instructions and reviewing documentation in support of unpaid invoices.

• Drafting and issue of the claim.

• Dealing with service of the claim.

• Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgment in default.

• When Judgment in default is received, writing to the other side to request payment.

• Receiving payment and sending it onto you.

• If payment is not received within 14 days, providing you with advice on next steps and likely fees.

‍

This is not an exhaustive list and we will discuss our services with you on an ongoing basis, as the matter progresses.

‍

How long will it take?

Matters usually take 6 to 10 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether it is necessary to issue a Claim. This is on the basis that the other side pays promptly on receipt of Judgment in default. However, any timescales that we provide to you are estimates only and will depend on a number of factors including the length of time that the court takes to process your claim. We will keep you updated as to timescales as your claim progresses.

‍

If enforcement action is needed, the matter will take longer to resolve, and we will provide you with a revised fee estimate and timescale at this stage.

‍

We will require you to provide to us information in support of the debt including copies of the invoices and a copy of the completed Debtor Questionnaire which can be provided upon request.

‍

Bankruptcy and Winding Up Petitions

Companies: Statutory Demand

A statutory demand is a formal demand for payment of an undisputed debt.

‍

In the case of a debtor company, our fees for preparation and service of a Statutory Demand are £1,000 plus VAT (currently at 20%) and a process servers fee estimated at £125 plus VAT (currently at 20%).

‍

How long will it take?

A debtor company has 21 days to respond to a statutory demand.

‍

Companies: Winding Up Petition

Where it becomes necessary to issue a Petition, our fees for the preparation and issue of the Petition will be £3,000 plus VAT (currently at 20%).

‍

In addition to our fees, the following disbursements are payable (these fees may be subject to increase from time to time and we will notify you of the amount payable at the time of instruction):

• Court fee of £343.

• Petition deposit of £2,600.

• Search fee of £26 plus VAT (currently at 20%).

• Process Server’s fee estimated at £125 plus VAT (currently at 20%).

• Advertisement fee of £125.80 plus VAT (currently at 20%).

• Counsel’s fee for each court hearing estimated at £150-300 plus VAT (currently at 20%) depending on availability and venue.

‍

Our fees include:

• Drafting and issuing the Petition.

• Dealing with service requirements and instruction of the process server.

• Drafting and placing the advertisement in the Gazette.

• Filing the Certificate of Compliance.

• Dealing with one hearing and one adjourned hearing including preparation of the hearing bundle and instruction of counsel.

• Dealing with all correspondence, formalities, instructions and reporting requirements inherent to the Petition.

This is not an exhaustive list, and we will discuss our services with you on an ongoing basis, as the matter progresses.

‍

Anyone wishing to proceed with a Petition should note that:

• The VAT element of our fee cannot be reclaimed from the debtor company.

• A revised costs estimate will be provided in cases where:

       i. a number of creditors come forward to support the Petition and attendance at more than one hearing and one adjournment is             required; or

       ii. the debt is disputed, and the court requires further evidence to be filed and considered at a final hearing; or

       iii. an application for an injunction is made by the debtor company for an order to preventing the advertisement and seeking the              dismissal of the Petition as significant costs may be incurred in defending the application.

• The debtor company must be situated within the jurisdiction of England and Wales.

‍

Individuals:  Statutory Demand

In the case of an individual debtor, it is necessary to serve a Statutory Demand.  Our fees are £1,000 plus VAT (currently at 20%) plus a process server’s fee estimated at £125 plus VAT (currently at 20%) per address and a search fee of £7 plus VAT (currently at 20%) per name searched.

‍

Individuals:  Bankruptcy Petition

If the debtor fails to comply with the terms of the Statutory Demand you may issue a Petition. Our fees for preparing and issuing a Petition will be £3,000 plus VAT (currently at 20%).

In addition to our fees, the following disbursements are payable (these fees may be subject to increase from time to time and we will notify you of the amount payable at the time of instruction):

• Court fee of £343.

• Petition deposit of £1,500.

• Search fee of £7 plus VAT (currently at 20%) per name searched.

• Process Server’s fee estimated at £125 plus VAT (currently at 20%).

• Counsel’s fee for each court hearing estimated at £165-330 plus VAT (currently at 20%) depending on availability and venue.

‍

The nature of the work to be carried out would include:

• Drafting and issuing the Petition.

• Dealing with service requirements and instruction of the process server.

• Filing the Certificate of Continuing Debt and list of creditors in compliance with the court requirements.

• Dealing with one hearing and one adjourned hearing including preparation of the hearing bundle and instruction of counsel.

• Dealing with all correspondence, formalities, instructions and reporting requirements inherent to this petition.

‍

Anyone wishing to proceed with a Petition should note that:

• The VAT element of our fee cannot be reclaimed from the debtor.

• A revised fee estimate will be provided in cases where:

       i. a number of creditors come forward to support the Petition and attendance at more than one hearing and one adjournment may be required; or

       ii. the debt is disputed, and the court may require further evidence to be filed and considered at a final hearing.

• The debtor must be situated within the jurisdiction of England and Wales.

‍

Recovery of fees

Please note that if you successfully recover the debt, you may be able to recover all or part of your legal fees and disbursements from the debtor. However, payment of our agreed fees and disbursements in full is not dependent upon the recovery of these costs from the debtor nor on an order for these costs being made in your favour.