Debt Recovery

We are required by the Solicitors Regulatory Authority Transparency Rules to publish information on costs of Debt Recovery with a value of less than £100,000.

We offer a range of fixed fees as set out below, and where work falls outside the scope of a fixed fee we charge on a hourly rate basis.

We expect that your matter will be dealt with by a qualified solicitor who will be assisted by a legal assistant and trainee solicitor from time to time.

Fixed Fees:

• Initial fixed fee meeting – £250 + VAT

• Letter of claim – between £250 and £500 + VAT

• Issue of non contested proceedings up to £5,000 (limited to preparation of claim form and particulars of claim and issuing proceedings at court – £350 + VAT

• Issue of non contested proceedings between £5,000 and £10,000 (limited to preparation of claim form and particulars of claim and issuing proceedings at court  – £500 + VAT

Should proceeding become defended, or we need to enter into negotiations on your behalf you will be charged at a hourly rate. You will be advised of the relevant hourly rate within our terms of business. As an estimate, we would expect fully contested proceedings to cost between £3,000 and £5,000 + VAT for the small claims track, £5,000 ¬£10,000 + VAT for fast track proceedings and £15,000 + VAT plus for multi track proceedings.

Court Claims:

These costs 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 (incl. VAT) Total
Up to £5,000 Between £35 – £205 £420 Between £455 – £625
£5,001 – £10,000 £455 £600 £1,050
£10,001 – £50,000 5% value of the claim £900 Between £1,400 – £3,400

 

Anyone wishing to proceed with a claim should note that:

·         If the claim is valued at less than £10,000, you will only be able to recover fixed costs of between £60 and £110 and the court fee.

·         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 21 days, providing you with advice on next steps and likely costs

Matters usually take 8 – 20 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.

Fixed Costs will not apply under the following circumstances:

·         Claims outside the jurisdiction of England and Wales

·         Claims which exceed £10,000

·         Any claim that is disputed by the Debtor(s) whether a defence is filed or not

·         Where further instructions are sought by the claimant or there is correspondence / negotiations with the Debtor before or during the issuing or proceedings and applying for Judgment.

Enforcement Options

Seizing Debtor’s Goods

Warrant /Write of Control

If the Judgment debt is less than £600.00

Pictons’ costs 10% of debt (subject to a minimum of £100 + VAT) Court Fee £121.00 (£66 if the debt is more than £600)

The High Court Enforcement officer will charge an administration fee if they are unable to recover payment from the Debtor.

Obtaining information from Judgment Debtor

Pictons’ costs — 10% of debt (subject to a minimum of £300 + VAT) Court Fee £110.00

The above fees do not include process server’s fees and conduct money payable to the Debtor

Attachment of Earnings

Pictons’ costs — 10% of debt (subject to a minimum of £250 + VAT) Court Fee £110.00

Third Party Debt Order

Pictons’ costs — 10% of debt (subject to a minimum of £500 + VAT) Court Fee £110.00

The above fee does not include process server’s fees

Charging Order

Pictons’ costs – £600.00 Fee £110.00

The above fee does not include Land Registry Charges and agents fees

VAT is payable on all costs

If the matter becomes protracted and it is evident that our usual fixed fee arrangement is not sustainable we will discuss our costs with you and agree either an increased fixed fee or costs based on the fee earners reasonable hourly rate.

Insolvency Proceedings

Statutory Demand

Pictons’ costs £500 + VAT

Does not include process server’s fees or any costs associated with the Debtor disputing the debt

Bankruptcy Proceedings

Pictons’ costs £1,500.00 + VAT    Court fee £280.00, Official Receiver’s Deposit £990.00

The above fees do not include process server and agent’s fees

Winding Up Proceedings

Pictons’ costs £1,750.00 + VAT    Court fee £280.00, Official Receiver’s Deposit £1,600.00

The above fees do not include advertising fees, process server and agent’s fees

VAT is payable on all costs

If the matter becomes protracted and it is evident that our usual fixed fee arrangement is not sustainable we will discuss our costs with you and agree either an increased fixed fee or costs based on the fee earners reasonable hourly rate.