Here at Landons we appreciate that the process of recovering a debt can be a stressful time. Our litigation department have a wealth of experience when it comes to dealing with these types of matters.
The debt recovery costs listed below apply where your claim is in relation to an unpaid invoice which is 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 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.
|Debt value||Court fee||Our fee|
|Up to £5,000||£205||£250 + VAT per hour with estimated 1 -2 hours work|
|£5,001 – £10,000||£455||£250 + VAT per hour with estimated 2 – 4 hours work|
|£10,001 – £25,000||5% value of the claim||£250 + VAT per hour with estimated 3 – 5 hours work|
|£25,001 – £50,000||5% value of the claim||£250 + VAT per hour with estimated 4 – 6 hours work|
|£50,001 – £100,000||5% value of the claim||£250 + VAT per hour with estimated 5 – 7 hours work|
Our fees include items detailed above, however there may be factors which would typically increase the cost of the fees. Where there is likely to be any additional cost, we would of course ensure that you are informed of this at the earliest opportunity and a clear estimate of those extra costs will be provided.
Factors that may lead to an increase in cost include:
- If the case is defended
- Enforcement proceedings
- Instructing a Bailiff
Anyone wishing to proceed with a claim should note that:
- The VAT element of our fee cannot be reclaimed from your debtor.
- Interest and compensation may take the debt into a higher banding, with a higher cost.
- The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
Our fee includes:
- Taking your instructions and reviewing documentation
- Undertaking appropriate searches
- Sending a letter before action
- Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
- When Judgement in default in received, write to the other side to request payment
- If payment is not received within X days, providing you with advice on next steps and likely costs
Matters usually take between 4 – 26 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 as we would have to take into account the delays caused by the speed of response of the courts.