Business to business debt recovery - disputed debt

Range of fees for a business to business debt which is disputed

These costs apply where your claim is in relation to an unpaid invoice which is disputed, and enforcement action is not needed.  If enforcement action becomes necessary, we will discuss what options are available to you and provide you with advice about costs, if necessary, which could be on a fixed fee basis or an hourly rate if more extensive work is needed.

Hearings Fees (VAT is not chargeable)

*For debt values of £10,000 plus, we have given an hourly rate above.  A claim can take anywhere from 10 hours of work up to 150 hours of work.  A time estimate will be discussed on an individual basis. In our experience, there are recurring factors which may increase the complexity of a claim:

• A debtor avoiding service of a claim;
• Complicated legal or factual issues;
• Further investigations required, such as – contacting third parties for evidence;
• 2 or more witnesses;
• Large volume of documents from either side;
• Multiple or various applications having to be made;
• Responding to multiple or various applications made by the other party;
• Inconsistent or conflicting accounts of events;
• Multiple parties;
• Fraud or dishonesty;
• A debtor becoming legally represented; and
• Higher value debt.

Those cases which are less complex typically include some of the following:

• Debtors that can be served, but who do not respond to a claim;
• Our clients already being familiar with the debt recovery process; and
• Simple factual matters.

Anyone wishing to proceed with a claim should note that:

• The VAT element of our fee cannot be reclaimed from your debtor
• VAT is applied at a rate of 20% and at the time of providing a quotation, this information is also provided
• Interest and compensation may take the debt into a higher banding with a higher cost
• The costs quoted above are for matters where no enforcement action such as the bailiff is needed to collect your debt

Our fee includes:

• Taking instructions and reviewing documentation
• Undertaking any necessary searches
• Sending a letter of claim
• Drafting and issuing claim if necessary (if acting for Claimant)
• Dealing with Acknowledgement of Service and/or Defence (if acting for Claimant)
• Drafting the Defence and/or Counterclaim (if acting for the Defendant)
• Drafting Reply and Defence to Counterclaim (if acting for Claimant)
• Dealing with the Directions Questionnaire
• Dealing with the transfer of proceedings to a different court if appropriate
• Dealing with disclosure to include drafting List of Documents
• Drafting witness statements and dealing with exchange of evidence
• Dealing with the preparation of all documents ready for the final hearing/trial
• Liaising with witnesses
• Preparing instructions to your advocate or barrister whichever is appropriate
• Reporting the outcome of the hearing to you
• Considering all documentation throughout
• Advising you throughout
• Dealing with all telephone calls, correspondence and attendances

Excluded Costs

The costs as outlined above do not include other third-party costs such as:

• Advocate's fees (if applicable)
• Barrister’s fees (if applicable)

These will be given to a client at the time a suitable application based on a client’s circumstances is identified. These fees will attract VAT at a rate of 20%..

It may become necessary during the course of the proceedings to make and deal with additional applications made to the court.  We will discuss the additional fees with you when advising you with regards to these additional steps and will not take any steps until your instructions are received.

It may become necessary during the course of the proceedings to instruct an expert witness.  We will discuss the additional fees with you when advising you with regards to the necessity to obtain such evidence and will not take any steps until your instructions are received. Each expert will charge differently, and a quotation will be obtained from them for your approval before any instructions are submitted on your behalf.

It may be necessary to instruct an advocate or barrister to represent you at any hearings that take place.  These may be charged on a fixed fee basis or on an hourly rate.  A quotation will be obtained from them for your approval before any instructions are submitted on your behalf.

Matters usually take between 4 – 12 months from receipt of instructions from you to get to a final hearing when judgment will be obtained.  This is dependent on which court that matter is being heard in and their listing facilities.  The complexity or otherwise may also have a bearing on the timetable set by the court.

The fees quoted may change due to the complexity of the matter.

We have a range of fee earners available to deal with these matters from junior members of staff through to Director level who are qualified as Legal Executives or Solicitors.  All work is supervised by the Directors.

For further details on our Litigation Team please click here