Fixed Fee Debt Recovery Solicitors
If you are looking to recover an unpaid debt from a business-to-business transaction, JMW Solicitors can help you do so for a fixed fee. Our debt recovery charges can be viewed below, and will guarantee you a high-quality service from our experienced commercial litigation team.
Please note that fixed fee debt recovery costs apply only to claims made in relation to an unpaid invoice that has not been disputed, and where enforcement action is not needed. If the other party disputes your claim at any point, further work may be required.
In these disputed cases, we will provide you with revised advice about additional costs, which could be on a fixed fee (for example, if only a one-off letter is required), or at an hourly rate, with an overall estimate, if more extensive work is needed.
For more information about our debt recovery fees and fixed fee services, call us on 0345 872 6666. You can also fill in our online enquiry form to request a call back at your convenience.
Prices
Please note that there will be two elements to the prices as set out below:
- Fees charged by JMW; and
- Fees payable to third parties.
Please ensure that you consider both parts of the price information.
Fees charged by JMW
The basis of all charges is a fixed fee unless otherwise stated.
Pre-Court Action
| Debt Value | Our Fee | VAT (Charged at 20%) | Total |
|---|---|---|---|
| Up to £5,000 | £50.00 | £10.00 | £60.00 |
| £5,001 - £10,000 | £50.00 | £10.00 | £60.00 |
| £10,001 - £50,000 | £1% value of the claim | £TBC | £1% +VAT |
| £50,001 - £100,000 | £1% value of the claim | £TBC | £1% +VAT |
County Court Action - Issuing a Claim
| Debt value | Court Fee | Our Fee | VAT (Charged at 20%) | Total |
|---|---|---|---|---|
| Up to £300 | £35.00 | £50.00 | £10.00 | £60.00 |
| £300.01 - £500 | £50.00 | £60.00 | £12.00 | £72.00 |
| £500.01 - £1,000 | £70.00 | £80.00 | £16.00 | £96.00 |
| £1,000.01 - £1,500 | £80.00 | £100.00 | £20.00 | £120.00 |
| £1,500.01 - £3,000 | £115.00 | £100.00 | £20.00 | £120.00 |
| £3,000.01 - £5,000 | £205.00 | £115.00 | £23.00 | £138.00 |
| £5,001 - £10,000 | £455.00 | £125.00 | £25.00 | £150.00 |
| £10,001 - £50,000 | £ 5% of value of claim | £150.00 | £30.00 | £180.00 |
| £50,001 - £199,999 | £ 5% of value of claim | £150.00 | £30.00 | £180.00 |
| £200,000 + | £10,000.00 | £200.00 | £40.00 | £240.00 |
Court Action - Entering Judgment
| Debt value | Court Fee | Our Fee | VAT (Charged at 20%) | Total |
|---|---|---|---|---|
| £25.00 - £5,000.00 | None | £22.00 | £4.40 | £26.40 |
| Over £5,000.00 | None | £30.00 | £6.00 | £36.00 |
Court Action - Enforcement
| Enforcement method | Debt Amount | Court fee | Our fee | VAT(charged at 20%) | Total |
|---|---|---|---|---|---|
| Warrant of Control (County Court Bailiff) | Under £600.00 | £83.00 | £50.00 | £10.00 | £60.00 |
| High Court Enforcement | Over £600.00 | £71.00 | £117.75 | £23.55 | £141.30 |
| Third Party Debt Order | Any amount | £119.00 | £150.00 | £30.00 | £180.00 |
| Attachment of Earnings | Any amount | £119.00 | £90.00 | £18.00 | £108.00 |
| Charging Order | Any amount | £119.00 | £175.00 | £35.00 | £210.00 |
| Order to attend Court for Questioning | Any amount | £59.00 | £225.00 | £45.00 | £270.00 |
Court Action - Misc. Fees
| Debt value | Court Fee | Our Fee | VAT (Charged at 20%) | Total |
|---|---|---|---|---|
| Small Claims Mediation | None | £150.00 | £30.00 | £180.00 |
Fees payable to third parties (‘disbursements’)
| Disbursement | Fee (£) | VAT (charged at 20%) | Total (£) |
|---|---|---|---|
| Trace | £50.00 | £10.00 | £60.00 |
| Trace and Asset Search | £275.00 | £55.00 | £330.00 |
| Process Serving (Non urgent) | £85.00 | £17.00 | £102.00 |
| + Sworn Affidavit | £15.00 | £3.00 | £18.00 |
| HM Land Registry registration fee | £20.00 | £4.00 | £24.00 |
| HM Land Registry Office Copies fee | £6.00 | £1.20 | £7.20 |
The above list of disbursements is not exhaustive but we will always confirm to you what disbursements will be charged as and when the time arises.
Work included and key stages
The precise work and stages involved in debt recovery matters vary according to the circumstances. However, we have set out the key stages involved in a typical claim:
- Taking your instructions and reviewing documentation.
- Undertaking appropriate searches.
- Sending a letter before action.
- Receiving payment and sending on to you, or if the debt is not paid, drafting and issuing a claim.
- Where no Acknowledgement of Service or Defence is received, applying to the court to enter Judgement in default.
- When the Judgement in default is received, writing to the other side to request payment.
- If the payment is not received, providing you with advice on the next steps and the likely costs.
Services excluded
Our services (within the scope of this costs information) will not include any of the following:
Disputed or Defended proceedings. This will be charged at the hourly rate of £240.00, inclusive of VAT. Should the Debt Recovery department require the assistance of the Commercial Litigation department, this hourly rate could increase depending on the expertise required and we would agree with you a revised scope of work and fees.
Counsel’s (barrister) fees may also be payable in addition to our fees. The fees for counsel will vary depending on the amount of preparation required for any enforcement hearing. On average the fee would be £1200 (inclusive of VAT), but we would agree any fee with you in advance if counsel was required.
Approximate/ average timescales
Debt recovery matters usually take 6 months (on average) 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.
Factors that could increase costs
In some circumstances we may increase our fees to account for additional time, work or skill required to meet your instructions. Examples include:
- If the value of the compensation and interest take the debt in to a higher banding attracting a higher fee.
- If enforcement action is needed such as a bailiff to collect your debt.
- If an enforcement hearing is required, in which case we may need to instruct a barrister.
Our Team
How JMW Can Help
Our fixed-fee debt recovery services include:
- Taking your instructions and reviewing the necessary documentation
- Undertaking appropriate searches
- Sending a letter before action
- Receiving payments and sending them on to you, or drafting and issuing claims when the debt is not paid
- Applying to the court to enter judgement in default in cases where no acknowledgement of service or defence is received
- Writing to the other party to request payment when the judgement in default is received
- Providing you with advice on the next steps and likely costs if payment is not received within 14 days
Debt recovery cases usually take up to 12 weeks to be resolved, from the moment we are given instructions by you to the receipt of the payment from the other party. This estimate is made on the basis that the other side will provide a prompt payment upon receipt of judgement in default. If enforcement action is needed, or if a claim needs to be issued, the matter may take longer to resolve.
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, resulting in a higher cost
- The costs quoted above do not apply in cases where enforcement action, such as bailiffs, is needed to collect the debt
Talk to Us
If you wish to speak to a member of our team about our fixed-fee debt recovery services, please call 0345 872 6666, or fill out our online enquiry form to request a call back.
