Business / Debt Recovery
No two litigation cases are the same. Each case is particular to its circumstances and the people and businesses involved, and estimating the cost is only really possible given an opportunity to look at the facts and evidence.
Total fees can range from less than £5,000 for a straightforward matter or where no defence is filed, through to £100,000 and more in complex cases.
We normally charge an hourly rate for debt recovery work, ranging from £135 to £300 per hour plus VAT at 20%, depending on the experience, qualifications, and specialist skills of the lawyer handling the matter. We will discuss and agree with you which of our lawyers would be most appropriate to handle your case.
Our fees will be higher, and there are likely to be additional costs if the matter goes to court.
You will normally be liable to pay all fees and disbursement charges relating to your case. Subject to certain conditions, a court may award you the right to seek recovery of some costs from your opponent if your case is successful.
What’s involved?
For debt recovery matters valued at up to £100,000 the initial work would typically include:
Drafting the letter of claim in compliance with court rules can take anything from five hours for a straightforward case with simple paperwork, through to 20 hours for a more complex case.
This initial work in a relatively simple matter, requiring around 10-15 hours’ work and charged at an approximate average hourly rate, would cost between £1700 and £2550 plus VAT at 20%.
Possible additional costs
If the matter is not resolved at the above stage, it may be necessary to bring proceedings in court, which will take more time and attract further costs.
We will charge additional fees for assisting in preparing the claim for court. Other charges, known as disbursements, may become payable for services provided by third parties. Depending on the service provided VAT at 20% may also be applicable, if that is the case we will advise you off this before incurring those third party fees.
If you wish to take your case to court you will be required to pay a court fee to issue your claim. For a money claim this fee is charged at 5% of the total sum claimed up to a maximum of £10,000. There may be further court fees payable as the case progresses, and we will tell you about these in advance. Court fees do not attract VAT.
You may decide and we may recommend that you instruct Counsel (a barrister), to present your case in court, which we will discuss with you beforehand. counsel’s fee will be agreed with you in advance and the cost will depend on the barrister’s experience and specialisms and the type of hearing they are representing you ate. VAT at 20% is payable on barristers’ fees.
In some cases, it may be necessary to instruct an external expert such as a tracing agent or service agent to assist in your claim. The expert will charge a fee and this will normall y also attract VAT at 20%. Again we will discuss this with you beforehand.
Court fees do not attract VAT at present.
Please note that timescales below are how long it would take us to undertake the work in a normal debt recovery matter, the ability of the court to issue documents, arrange hearings and list a matter for trial are not within our control so the timetable below may take longer for that reason.
How long will it take.
No two claims are the same, and the way that they may proceed through the court can differ. However, the following stages are applicable to each claim and need to be dealt with before a case comes to trial.
Directions given by the Court.
Please note that these dates do vary from court to court and dependant on the amount being claimed.
