If you need assistance in recovering money that is due to you then we can help. We write to your debtor to arrange repayment; if they do not pay and you want to take it further, we can advise you on the options and costs of doing so and through the Court and
Many debt collection agencies can only offer a limited service. They rely largely on persuasion and lose interest if the debtor refuses to pay. Instructing a firm of solicitors shows you are serious in wanting payment and you have the comfort of knowing that we are professionally qualified, have insurance and that your money is safe with us.
The Debt Recovery Department is a specialist department of Lightfoots LLP with many years’ experience of successfully recovering debts.
The links below provide more detail on the likely costs and work involved for recovering undisputed debts.
The fees set out above cover all the work in relation to the following key stages of a claim:
Matters usually take 6-8 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.
To provide you with a guide of the likely costs if you instruct us to assist in you in recovering outstanding undisputed debts, the standard fees listed below cover all the work required at different stages of debt recovery. This includes sending an initial letter to the debtor, issuing court proceedings, entering a judgement and enforcing the judgement. The fees listed constitute an estimate for this work but do not form part of a binding quote.
Following a discussion of your individual circumstances and receipt of your instructions, we will provide you with a written estimate to carry out the work which may differ from the below pricing.
| Debt Amount Outstanding | Our Fee for Letter* (Exc VAT) |
|---|---|
| £999 or less | £40 |
| £1,000 to £9,999 | £70 |
| £10,000 or more | £100 |
* These charges mirror the debt recovery costs that can be claimed under the Late Payment of Commercial Debts (Interest) Legislation
| Value of Claim | Court Fee | Our Charges (Exc VAT) | Reclaimable Amount |
|---|---|---|---|
| £25 – £200 | £25 | £60 | £75 |
| £201 – £300 | £25 | £80 | £75 |
| £301 – £500 | £35 | £80 | £85 |
| £501 – £1,000 | £60 | £100 | £130 |
| £1,001 – £1,500 | £70 | £100 | £150 |
| £1,501 – £3,000 | £105 | £100 | £185 |
| £3,001 – £5,000 | £185 | £100 | £265 |
| £5,001 – £9,999 | £410 | £150 | £510 |
| £10,000 – £50,000 | 4.5% of claim value | £200 | £100 + Court Fee |
| £50,001 – £100,000 | 4.5% of claim value | £300 | £100 + Court Fee |
| Type of Judgement | Court Fee | |
|---|---|---|
| Claim for £25 – £5,000 | Claim over £5,000 | |
| No Reply to Claim | £22 | £30 |
| Acknowledge Claim but no Defence Filed | £25 | £35 |
| On Admission of Claim | £40 | £55 |
| On Admission of Claim and Court Decides Rate / Time for Payment | £55 | £70 |
Below we list the main four methods of enforcement available. Where we consider another method of enforcement to be appropriate to your case we will identify this along with the associated costs involved, seeking your approval before proceeding.
| Type of Enforcement | Court Fee | Our Charges (Exc VAT) |
|---|---|---|
| Attachment of Earnings Order | £110 | £50 |
| Apply for Warrant of Execution (Bailiff) | £77 | £60 |
| Apply for a Writ of Fi Fa (High Court Enforcement Officer)* | £66 | £60 |
| Charging Order Application** | £110 | £135 |
You may agree, or the court may allow, your debtor to pay the judgment debt by installments. We can provide a monitoring service should you wish us to monitor the payments and act on your behalf should a payment be missed. Our charge for this service is £10.00 per month.
There are no hourly rates for our standard debt collection services. All fixed fees are stated above. Additional legal services not within the standard debt collection process may incur an hourly rate depending on requirements.
If the debtor 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.
Please find below the answers to some frequently asked questions. Please get in touch if you have any other questions.
When you have an unpaid debt and have been unsuccessful in your attempts to obtain payment.
Where the Late Payment of Commercial Debts (Interest) Legislation applies, or you otherwise have a contractual right to claim interest or costs on late payment or your legal costs we will look to recover this for you, in addition to the principal debt. If Court proceedings are issued the Court Rules also allow you to recover what are called “fixed costs”, and which we automatically claim on your behalf. These are detailed in the table above.
We can provide you with specialist advice to assist you in making informed decisions as to how to proceed with the recovery of your debt. If payment of the debt is disputed, the matter can be handled by our experienced Litigation Department.
When you instruct us, we will write to your debtor requesting payment. If the debtor does not pay, we will advise you of the options available to you, to include the issue of court proceedings.
This depends on whether the debtor seeks to dispute the claim. If not we can apply to the court for judgment. If the claim is defended it may be transferred to our Litigation Department.
There are a number of enforcement options and we use our expertise to advise you which are best for you.
If a company owes you £750 or more, or an individual owes you £5,000 or more then bankruptcy (or winding up if it is a company) is an option. It is an expensive option and even if you take this step you will be in no better position than the other unsecured creditors. However, as a first step, and without committing you to this expense, you can serve a formal demand for payment (a statutory demand) that gives the debtor 21 days to make payment and which can be a successful means of obtaining payment. We will advise you on this if we think it appropriate.
Lightfoots LLP - Solicitors of England and Wales. Authorised and Regulated by the Solicitors Regulation Authority (SRA) under number 508443.
For further information on standards and requirements of SRA regulation, please read the SRA Handbook.