Debt Recovery
There are several ways that Buchanan and Co Solicitors can help you collect debt from someone who owes you money. We can send a letter of claim to your debtor, which will set out the details of the debt and the amount owed. We will then follow up with telephone calls to chase payment, and if necessary, we can issue court proceedings. Tim Barlow is our debt recovery specialist ably assisted by Charlie Kirk.
If the debtor does not repay the debt, we can obtain a County Court Judgment (CCJ) against them. We can then enforce the CCJ by means of an attachment of earnings order, a third-party debt order, or a warrant of execution. If necessary, we can also transfer the case to the High Court.
The Best Way to Handle Your Outstanding Debts
If you’re like most people, you probably don’t enjoy having to chase after people who owe you money. It can be a huge hassle and take up a lot of your time and energy. Fortunately, there are steps you can take to make the process a little easier on yourself. Speaking with a solicitor is always a good idea when you’re trying to collect on a debt. They can help by sending letters of claim, making telephone calls, issuing court proceedings, and even enforcing judgments. Here’s a look at some of the ways a solicitor can help you get the money you’re owed.
Sending a Letter of Claim
The first step in many cases is to send a letter of claim to your debtor. This is often all it takes to get them to start paying what they owe you. If they don’t respond to the letter or make any attempt to pay the debt, then you can take further action.
Telephone Calls Chasing Payments
If your debtor doesn’t respond to your letter of claim, the next step is usually to make some telephone calls chasing payment. This can often be enough to get them to start paying what they owe. If they still don’t respond, then you can take further action.
Issuing Court Proceedings
If your debtor doesn’t respond to your telephone calls, the next step is usually to issue court proceedings. This will usually get their attention and prompt them to start paying what they owe. If they still don’t respond, then you can take further action.
Obtaining a County Court Judgment (CCJ)
If your debtor doesn’t respond to your court proceedings, the next step is usually to obtain a County Court Judgment (CCJ). This will usually get their attention and prompt them to start paying what they owe. If they still don’t respond, then you can take further action.
Enforcing the CCJ
If your debtor doesn’t respond to your CCJ, the next step is usually to enforce the CCJ. This will usually get their attention and prompt them to start paying what they owe. If they still don’t respond, then you can take further action.
There are many steps you can take if you’re owed money by someone else. Speaking with a solicitor is always a good idea as they can help with everything from sending letters of claim to issuing court proceedings. In most cases, taking these steps will be enough to get your debtor’s attention and prompt them to start paying what they owe. However, if they still don’t respond then you can take further action such as obtaining a CCJ or enforcing it.
Our Fees
Debt recovery up to £100,000
Hourly rate
We are required to provide certain information with regards to our privacy which combined by checking on the inns on this page.
It is difficult to provide the accurate information to cost without knowledge of your particular needs. For further information and to obtain an hourly rate cost of assessing your matter please contact us.
Overall fees will depend upon the nature and complexity of the matter. Fees can be broken down as follows.
Letter of claim
Fees for a typical letter of claim range from £295 plus VAT for a straightforward case to £1000 plus VAT for more complex matters which require detailed investigation.
Court proceedings
Simple cases £3000-£6000 excluding VAT
Medium complexity cases £6000-£25,000 excluding VAT
Complex cases £25,000-£125,000 excluding VAT
Factors that could make a case more complex
- Defending claims that are brought by litigants in person
- Making and defending cost applications
- Making defending a specific disclosure
- The number of witnesses
- The number of documents
| Amount of Claim | Issue Fee | Fixed Costs | VAT | Total |
| £25.00 – £300.00 | £35.00 | £50.00 | £16.00 | £95.00 | |
| £300.01 – £500.00 | £50.00 | £50.00 | £16.00 | £110.00 | |
| £500.01 – £1,000.00 | £70.00 | £70.00 | £14.00 | £154.00 | |
| £1,000.00 – £1,500.00 | £80.00 | £80.00 | £16.00 | £176.00 | |
| £1,500.01 – £3,000.00 | £115.00 | £80.00 | £16.00 | £211.00 | |
| £3,000.00 – £5,000.00 | £205.00 | £80.00 | £16.00 | £301.00 | |
| £5,000.01 – £10,000.00 | £455.00 | £100.00 | £20.00 | £575.00 | |
| £10,000 – £200,000.00 | 5% of claim value | £100.00 | £20.00 | ||
| £200,000.00 + | £10,000.00 | £100.00 | £20.00 |
Costs for uncontested Debt Recovery are as above, however, is a matter becomes contested or defended, our fees are based on the amount of time we spend on your matter/s.
Our Hourly Rates are:
| Legal Executive | £175.00 + vat | £210.00 |
| Assistant Solicitor | between £210.00 to £250.00 + vat |
| Partner/Director | £275.00 + vat | £330.00 |
In our experience, there are recurring factors which may increase the complexity of a claim:
- A debtor avoiding ser4vice of claim:
- Complicated legal or factual issues:
- Inconsistent or conflicting accounts of events:
- Multiple parties:
- Fraud or dishonesty:
- A debtor becomes legally represented: and
- Higher value debt.
Those cases which are less complex, typically include some of the following:
- Debtors that came be serviced, but who do not respond to a claim:
- Our clients already being familiar with the debt recover process:
- Simple factual matters.
Our charges are based upon and hourly rate of between £175.00 & £275.00 plus VAT , and for an undefended debt recovery claim, utilising the pre-action protocol and where there is no substantive disputer on the amount claimed, but it is still necessary to issue court proceedings to force payment, our fees will be in the region of £1,500.00 – £3,000.00 plus VAT
If a claim is defended and is contested all the way to final hearing, the costs could be in the region of £10,000 to £15,000.00 + vat and is might take 9-12 months to reach trial. If the case includes more complex factors such as:
- Substantial issues of dispute:
- More than one defendant:
- Expert evidence is needed, or
- The hearing lasts more than one day
If the matter goes further, they may go to court. If this happens, it will attract the following disbursements:
- Court document fee; £300.00 with NO applicable VAT;
- Council fees: our instructed council work on a half day or full day basis would typically start at around £750 + VAT and very often be much more depending on the engaged counsel;
- Court prepared costs: £275.00 per hour + VAT. A typical, low complexity case takes 3 hours preparation, a typical medium case take 6 hours.
If the matter were to become unduly complex or protracted, then it is likely that the fee estimate will change and if this is the case then we would discuss this with you in the first instance, so as to make you aware of any potential further costs.
It is important you understand that our fees are not only relevant cost which you will have to pay. Depending on how your matter progresses, you may also have to pay somewhere all of the following.
- The fees of tracing agent or process server to locate these can be as little as £50.00 plus fat but can increase to as many thousands in complex and high value cases.
- The fees of process server to serve the claim on the debtor (on average these are somewhere in the reason of £100.00 -£200.00 plus VAT).
- Court fees – you’ll need to pay the court fees to start a claim. This will be calculated in accordance with the size the debt you’re claiming and will range from £35.00 (for unpaid debts not exclude exceeding £300.00) to£5,000.00 which are unpaid debts Hundred thousand pounds. There may be other fees to pay during the court process details of which can be above.
- The fees of a barrister to attend the hearing at court. As with our fees these depends on the complexity of the case, the size of the debt and the nature of the hearing. For a trial (which is the final hearing of a debt claim) a barristers fees could be anything from £1000.00 to more than £10,000.00 plus VAT . In most debt claims we would expect the barristers fees be something like £2000.00 plus VAT, on average.
- Other charges from third parties, such as Land Registry fees to obtain documents, or fees charged by companies house.
What is including our services
We set out some information below regarding our fees. In all cases, there’ll be a certain aspect of work which are likely to need to undertake, which include the following:
- Liaising with you and taking your instructions on the matter, including;
- review the Debtors legal liabilities to pay you the debt;
- Discussing the Debtors financial circumstances and their ability to pay you regardless of what legal action you may take.
- Writing a letter before claim to the debtor, demanding payment in compliance with the relevant court protocols;
- Administering payment of the debt or, if the debt does not pay, starting court proceedings;
- If the debt does not respond to the court claim, applying for judgement;
- Once a judgement is obtained, demanding the Debtors pay the judgement debt;
- Discussing with you what to do, and your enforcement options, if the debt does not pay the judgement including the likely cost of such actions .
Our fixed fee range above assumes that:
- The debt is a UK based business;
- The Debtors location is known and does not need to be traced;
- The debt can be evidence in writing (for example and invoice or email chain);
- The debt is for a fixed amount;
- The debt has fallen due.
- The debt is not disputed and
- the matter does not proceed to contested action on enforcement proceedings.
What is including the fixed fee.
- Taking your instructions and reviewing documentation;
- Undertaking appropriate searches;
- Sending a letter of claim;
- Receiving payments and onward transmissions onto you.
- If Payment is not received when the timescales allowed in the letter before claim, providing you with advice on the next steps and likely costs.
Timescales
Undisputed debt collection can normally be concluded within 12 to 16 weeks. However, this depends on whether it is necessary to issue a claim, the response to the other side, including whether they pay promptly, and whether any enforcement actions needed. Time scales are always dependent on timescales provided by the relevant court.
The time scales for dealing with any dispute will vary depending on the factors we have already discussed on this page. In some cases, a compliant debtor may pay up within a matter of days or weeks. In other cases, particularly if the contested trial is necessary, the process can take many months and sometimes more than one year, especially if the court system is exceptionally slow. Our experiences that on average those debts are dealt with before the need to start court proceedings, take less than three months to resolve and can be much quicker. Those that require court proceeded to take an average around 6 to 8 months to deal.
VAT is charged at the current published rate of 20% & electronic money transfers are charged at £35.00 + vat for each transaction.
