SRA Transparency Rules Cost & Service – Debt Recovery
Posted by: The Dodds Solicitors Team
Posted in: Litigation/Personal Injury
Posted on: 6th December 2018
Our civil litigation department is headed by Sarah Spence who has over 25 years’ experience of dealing with litigation claims and is a member of the Association of Personal Injury Lawyers (APIL).
Range of fixed fees for a business to business debt that is undisputed
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||£205||£180||£385|
|£5,001 – £10,000||£455||£240||£695|
|£10,001 – £50,000||5% value of the claim||Plus £360 including VAT|
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, 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.
- We request that outstanding debts are paid directly to you.
Our fee includes:
- Taking your instructions and reviewing documentation
- 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 X days, providing you with advice on next steps and likely costs
- Our fee does not include undertaking any searches required
Matters usually take 2 – 3 months 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.