Debt Recovery Solicitors
Our debt recovery solicitors, working from offices in Manchester and London, offer a streamlined service to assist you in recovering unpaid invoices from both businesses and individuals.
Talk to one of our team members on 0330 111 3131
We understand that chasing payment of outstanding invoices can be a difficult and time-consuming process. Our solicitors aim to take away this burden by offering a fixed-fee debt recovery service in certain circumstances.
You can instruct us at any stage, and whether you’re a business or an individual, we’ll work tirelessly to recover unpaid debts on your behalf. Most issues can be solved amicably without a dispute, avoiding costly court proceedings.
However, if further legal action is required, our specialists have the experience and expertise to guide you through the process.
For a no-obligation consultation, speak to our debt recovery team today. You can either fill out a contact form or call us on 0330 111 3131.
Why Us?
- We’re recognised by both the Legal500 and Chambers as a leading law firm for 2024.
- Our commitment to customer service sets us apart from other firms – our clients consistently rank our dispute resolution team as one of the best in the country.
- We have vast experience in both personal and commercial debt recovery, acting for clients all across the UK.
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Debt Recovery Services
Our debt recovery services are designed to assist you throughout the entire process, providing expert guidance and support at every stage. Our services are as follows, although keep in mind that this is not meant to be an exhaustive list and our solicitors will discuss your requirements on a case-by-case basis:
- Advice on the most appropriate options for recovering the debt and the enforcement options which may be available
- Drafting demand letters
- Issuing legal proceedings
- Advising you on suitable alternative dispute resolution and settlement negotiations
- Guiding you through the process of legal proceedings and preparing all the required court documentation
- Preparing for trial
- Attending trial
Fixed-Fee Service For Undisputed Debts
We can offer our services on a fixed-fee basis in relation to unpaid invoices which are not disputed by the other party. Discounts for volume instructions can be agreed.
Please note that our fixed-fee debt recovery service is for undisputed debts only. Should the debt become disputed, we will charge on an hourly rate basis, which we will discuss and agree with you.
Our fixed fees are shown below:
| Stage | Fees excluding VAT* |
| To review initial documents, draft and issue our Letter of Claim
|
£250
|
| Preparation and issue of Court proceedings
|
£300
|
| Application to Court for Default Judgment
|
£60
|
*VAT is payable at the standard rate, which is currently 20%.
Our demand letters to individuals require a 30-day response window. For companies, this is reduced to 7 days. If legal proceedings are issued, the timescales are as follows:
| Stage | Timescale |
| Service of the claim on the debtor
|
5 days
|
| Deadline for the debtor to file an acknowledgement of service
|
14 days
|
| In absence of the acknowledgement of service, the date of which we can apply for default judgment
|
15 days
|
| If an acknowledgment of service has been filed the deadline for the debtor to file a formal defence *
|
14 days
|
*If the debtor files a formal defence we will require further instructions on the disputed claim (please refer to the Disputed Debt Recovery section below as our fees will then be charged on a time-spent basis).
Service for Disputed Debts
Not all debt recovery matters are equal. If a debtor files a formal defence within the allowable timescale, the debt becomes disputed.
The process of recovering a disputed debt can be complex but don’t worry, we have specialist debt recovery solicitors to help you.
However, please note that disputed claims are charged on an hourly basis and vary depending on the complexity of the legal and factual issues, along with the number of documents involved. As a guide, our fees for reviewing your initial paperwork and preparing a letter of claim would be in the region of £525 – £900 plus VAT, but this can vary depending on the aforementioned.
Once we have undertaken our initial review, we will provide you with an estimate of future costs and any expenses, which we pay on your behalf and recover later. This may include court fees, expert witness fees, and barristers’ fees. These will be agreed with you in advance.
For debts up to £100,000, fees up to and including trial can range between £10,000 and £30,000, sometimes more, but we will always consider a cost-benefit analysis first. The hourly rates of our solicitors are shown below:
| Level
|
Hourly rate excluding VAT*
|
| Partners
|
£300
|
| Associate Solicitors
|
£250
|
| Solicitors
|
£175
|
| Trainee Solicitors
|
£110
|
*VAT is payable at the standard rate currently 20%.
In the event that legal proceedings are issued, we refer you to the timescale section above. Please note that there are additional stages required within proceedings if it is a disputed debt.
The deadlines for the additional stages are set by the court as the matter proceeds. However, we estimate the possible timescales below:
| Stage | Timescale |
| Up to and including issuing proceedings
|
4-8 weeks
|
| Up to and including Costs and Case Management Conference
|
8 weeks
|
| Up to including of Disclosure and Inspection
|
8 weeks
|
| Up to Service of Witness Statements and Expert Reports
|
10 weeks
|
| Up to and including Pre-Trial Review (PTR)
|
8 weeks
|
| Up to Trial
|
8 weeks
|
We have provided approximations of the timescales involved for each stage. However, there are several factors which can impact these estimates, such as:
- The length of time the debtor may take to respond to correspondence
- Whether the parties require more time for negotiation
- How quickly the Court may process paperwork
- Availability of court dates
- Whether the parties require more time to deal with certain steps within the proceedings
Disbursements & Additional Fees
Disbursements are fees you are required to pay to others during the debt recovery process. These may include court fees, barristers’ fees, experts’ fees, process servers’ fees and bailiff fees.
Court Fees
When issuing proceedings, a court fee is payable in addition to our fees. The court fee is dependent on the amount you are seeking to recover. Please see the below table detailing the fees payable:
| Claim amount | Court fee* |
| Up to £300
|
£35
|
| Up to £500
|
£50
|
| Up to £1,000
|
£70
|
| Up to £1,500
|
£80
|
| Up to £3,000
|
£115
|
| Up to £5,000
|
£205
|
| Up to £10,000
|
£445
|
| Up to £100,000
|
5% of the claim
|
| Up to £200,000
|
5% of the claim
|
| More than £200,000
|
£10,000
|
*There is no VAT payable on Court fees.
Barristers and Experts
Barristers’ fees, experts’ fees, process server fees and bailiff fees are all dependent on the nature of the work they are instructed to undertake. Their fees and timescales are estimated on a case-by-case basis.
We will obtain estimates and seek your approval of their fees before we formally instruct on your behalf.
Frequently Asked Questions
What is debt recovery?
Debt recovery is the process of pursuing payments of debts owed by individuals or businesses. This typically begins with polite reminders but can progress to legal action to officially demand payment. There are a variety of steps creditors can take to ensure they receive the money they are rightfully owed.
When should I consider using a debt recovery service?
You should consider using a debt recovery service if you have outstanding debts that have yet to be paid despite repeated requests. Often, the relationship with the debtor may have broken down, or they’ve become unresponsive, and you need professional assistance to recover the money.
What are demand letters?
Demand letters are formal written requests sent to debtors, requesting payment of the outstanding debt within a specified timeframe. Often, a well-drafted letter from a reputable solicitor will encourage a debtor to pay up.
What is alternative dispute resolution (ADR)?
Alternative dispute resolution (ADR) refers to various methods of resolving disputes without going to court, such as mediation or negotiation. ADR can often be a quicker and more cost-effective way to settle debt disputes.
What enforcement options are available if the debtor still doesn’t pay?
Suppose the court grants a judgment in your favour and the debtor still does not pay. In that case, there are several enforcement options available, such as seizing assets, obtaining a Charging Order on the debtor’s property, or applying for a Third Party Debt Order. In extreme cases, you can also submit a Bankruptcy Petition or Winding Up Petition to force liquidation of all of the debtor’s assets.
