Legal experts named again in prestigious Legal 500
Specialists from law firm mfg Solicitors have once again been named among the best in the country...
Thank you for looking at our Debt Recovery services. Debts can arise in all walks of life and we regularly advise and assist businesses and individuals alike.
The bulk of our debt recovery instructions come from businesses across various sectors. With many years of experience and strong expertise in litigation both in and out of court, our debt recovery service is fast, efficient and economical.
Why Us
We have an experienced team who can assist you with recovering both disputed and undisputed debts.
We pride ourselves on exceptional customer care skills enabling you to send out the right message and retain the goodwill of your customers whilst recovering outstanding payments.
We can offer you clear, practical advice and will discuss all the options available to establish the most appropriate way of dealing with debtors. We have tried and tested processes in place to ensure we can recover debts quickly, efficiently and cost-effectively, with transparent fixed fees.
We are proud to hold Lexcel Accreditation, issued by the Law Society. This involves the firm undergoing a rigorous audit process which ensures we maintain high levels of client care.
Pricing
We appreciate that the fees involved in debt recovery are important to you.
We review our fees on a regular basis, considering client’s feedback, to ensure we continue to offer a cost-effective debt recovery service.
We typically work on a fixed fee basis, so that from the outset you know what the fees will be for your transaction.
Undisputed Debt Recovery Charges
All undisputed debt recovery work is carried out at a fixed rate.
Letter before action
Amount of Debt | Charge + VAT at 20% |
|---|---|
£0-1,000 | £25.00 (+ VAT at 20% - £5) |
£1000.01 - £4,999.99 | £35.00 (+VAT at 20% - £7.00) |
£5,000 - £10,000 | £50.00 (+VAT at 20% - £10.00) |
£10,000 - £25,000 | £75.00 (+VAT at 20% - £15.00) |
£25,000+ | £100.00 (+VAT at 20% - £20.00) |
Letter before action charges are not recoverable from your debtor.
Telephone Chasers
Unless instructed otherwise, on expiry of the letter before action, if a satisfactory response is not received from the debtor we will automatically chase the debtor for payment via the telephone.
All telephone calls and updates to clients are charged in accordance with our hourly rates. However, most debt recovery matters are carried out by a Paralegal or a Trainee Solicitor to ensure that the work is carried out in the most cost effective manner. The average hourly rate of a Paralegal/ Trainee Solicitor is £130 plus VAT at 20% (£26.00).
Claim Form
We will commence Court proceedings against your debtor on your behalf.
Amount of Debt | Charge [+VAT at 20%] | Court Issue Fee | Fixed Costs* |
|---|---|---|---|
Up to £300 | £200.00 - £500.00 (+ VAT at 20% - £40.00 - £100.00) | £35.00 | £50.00 |
£300.01 - £500 | £200.00 - £500.00 (+ VAT at 20% - £40.00 - £100.00) | £50.00 | £50.00 |
£500.01 - £1,000 | £200.00 - £500.00 (+ VAT at 20% - £40.00 - £100.00)) | £70.00 | £70.00 |
£1,000.01 - £1,500 | £200.00 - £500.00 (+ VAT at 20% - £40.00 - £100.00) | £80.00 | £80.00 |
£1,500.01 - £3,000 | £200.00 - £500.00 (+ VAT at 20% - £40.00 - £100.00) | £115.00 | £80.00 |
£3,000.01 - £5,000 | £200.00 - £500.00 (+ VAT at 20% - £40.00 - £100.00) | £205.00 | £80.00 |
£5,000.01 - £15,000 | £200.00 - £500.00 (+ VAT at 20% - £40.00 - £100.00) | £455.00 | £100.00 |
£15,000.01 - £50,000 | £200.00 - £500.00 (+ VAT at 20% - £40.00 - £100.00) | 5% of the value of the Claim | £100.00
|
£50,000.01 - £100,000 | £200.00 - £500.00 (+ VAT at 20% - £40.00 - £100.00) | ||
£100,000.01 - £150,000 | £200.00 - £500.00 (+ VAT at 20% - £40.00 - £100.00) | ||
£150,000.01 - £200,000 | £200.00 - £500.00 (+ VAT at 20% - £40.00 - £100.00) | ||
£200,000.01 - £250,000 | £200.00 - £500.00 (+ VAT at 20% - £40.00 - £100.00) | £10,0000 | £100.00
|
£250,000.01 - £300,000 | £200.00 - £500.00 (+ VAT at 20% - £40.00 - £100.00) | ||
£300,000.01 + | £200.00 - £500.00 (+ VAT at 20% - £40.00 - £100.00) | ||
To issue proceedings other than a money claim | To be agreed |
*Indicates what is recoverable from your debtor. The Court Issue fees shown above are normally also recoverable from the debtor.
To Request Judgment in Default (where the defendant has not filed an Acknowledgment of Service or a Defence)
Amount of Debt | Default of Acknowledge- -ment of Service Charges | Fixed Costs Recoverable* | Default of Defence Charges | Fixed Costs Recoverable* |
|---|---|---|---|---|
£0 - £5,000 | £50 + VAT at 20% - £10.00 | £22 | £50 + VAT at 20% - £10.00 | £25 |
Over £5,000 | £50 + VAT at 20% - £10.00 | £30 | £50 + VAT at 20% - £10.00 | £35 |
*Indicates what is recoverable from your debtor
These costs apply for undisputed outstanding payment of invoice(s).
If the debt is under £10,000 there is a no costs rule which will mean that as a general rule you are unable to recover your costs from the debtor even if you are successful. Fixed costs and Court fee are usually recoverable and are indicated above by a *
You can claim interest and compensation and we will advise you of the applicable rates.
Disputed Debt Recovery (Claims over £10,000)
If during the debt recovery process, the matter becomes disputed or enforcement action is required (where Judgment has been obtained but the amount remains unpaid), we will discuss the change in fees with you and agree a way forward.
Upon a case being defended we will advise as to the merits of that defence and provide a full breakdown of likely costs of continuing the action.
However, to give you an indication of fees, all work will be charged on a time spent basis in accordance with hourly rates. As set out above, the average hourly rate of fee earners in the Commercial Litigation and the Dispute Resolution Team is £210 per hour plus VAT at 20% (£42.00)
Disputed Small Claims matters (matters less than £10,000)
This Firm does however offer a Fixed Fee for the conclusion of small claims matters (whether it be by way of early settlement or determination, Court Judgement or Order or discontinuance).
Claims up to £5,000 - Fixed Fee £2,000 - £3,000 plus VAT at 20% (£400.00 - £600.00) and disbursements *
Claims £5,000 to £10,000 – Fixed Fee £4,000 - £5,000 plus VAT at 20% (£800.00 - £1,000.00) and disbursements *
*Court fee as set out above and barrister fees for attendance at a final hearing (dependent on barrister seniority) usually £285 - £300 plus VAT at 20% (£57.00 - £60.00) for a small claim.
Hearing Fees
Where a matter is disputed and the matter is listed for a hearing, there will also be a hearing fee.
Small Claim Track where the amount claimed is:
- Claims up to £300 £25
- Claims between £300.01 and £500 £55
- Claims between £500.01 and £1,000 £80
- Claims between £1,000.01 and £1,500 £115
- Claims between £1,500.01 and £3,000 £170
- Claims more than £3,000 £335
- Fast track claims (claims over £10,000) £545
- Multi track claim (claims over £25,000) £1,090
Insolvency Proceedings
We can commence insolvency proceedings against your debtor on your behalf
| Charges* | Disbursements |
|---|---|---|
Statutory Demand | £200.00 + VAT at 20% (£40.00) | Process Servers Fee (circa £60 plus VAT at 20% (£12.00) depending on location) |
Bankruptcy Petition (Individual) | £500.00 + VAT at 20% (£100.00) | Issue Fee - £302.00 Official Receivers Deposit - £990 Process Servers Fee |
Winding Up Petition (Corporate) | £600.00 + VAT at 20% (£120.00) | Issue Fee - £302.00 O/R Deposit - £1,600.00 Petition Advert - £87.84 (inc VAT) |
Other disbursements may be payable.
Statutory Demand fees are not normally recoverable from your debtor.
Petition fees are normally recoverable from your debtor.
Exclusions
Our fees are fixed and 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 will make sure 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:
- Any work done between the expiry of a demand letter and the issuing of Court proceedings for example telephone chasers and updates to you.
- Enforcement proceedings including instructing a Bailiff.
- The matter is over £10,000 and as such falls outside the small claims track limit.
Time Scales
There is no typical debt recovery timescales. However, to give you an indication a typical debt recovery demand letter provides for a response within 7 days for a company debtor and 30 days for an individual debtor.
Whether we are required to issue a claim and whether the other side pay promptly on receipt of any Judgment issued by a court. As detailed above, if enforcement action is required, we will discuss the fees and timescales involved.
Key Milestones
With every transaction there are key milestones, which may vary according to individual circumstances. Our fee will include these milestones and may be as follows:
- Taking your instructions and reviewing documentation
- Undertaking appropriate searches
- Issuing a letter before action requesting payment from the debtor
- Receiving payment and sending this on to you
- Drafting and issuing a claim form to the relevant court if the debt is not paid
- Applying to the court to enter a Judgment in Default if the debtor fails to respond to court proceedings
- Contacting the other side to request payment where a Judgment in Default has been issued by the court