What Will It Cost?

Farleys' debt collection process is structured on a 'fixed-fee' basis as set out below. In addition to our fees, VAT and disbursements will be added. Disbursements such as court fees will vary depending upon the value of the debt.

When the debt is collected, a further fee will be charged based upon the amount which is recovered. This ranges from 5% for monies recovered under £1000 to 2% for recovery of monies exceeding £15,000.

Fixed Fee Charges

Action	Debt Value	Charge
Letter Before Action		£ 15.00
Issuing County Court Claim Form	Up to £     500.00 Up to £  1,000.00 Up to £  5,000.00 Up to £15,000.00 Over  £15,000.00	£  75.00 £125.00 £150.00 £175.00 £200.00
Entering Judgment	Up to £15,000.00 Over  £15,000.00	£  50.00 £  75.00
Successful Recovery Rates	Up to £  1,000.00 Up to £  5,000.00 Up to £15,000.00 Over  £15,000.00	5%      4%      3%      2%
Enforcement of Judgment	Warrant of Execution Attachment of Earnings Third Part Debt Charging Order	£  75.00 £125.00 £225.00 £400.00
Insolvency	Issuing a Stat Demand Issuing a Bankruptcy / Winding-up Petition	£150.00 £850.00

VAT plus any disbursements (such as court fees or process server fees) will be charged in addition.

Example

You instruct us to collect a debt for you of £2000.00, pursuant to a contract to supply goods, which has been outstanding for 3 months.

Stage One

We will draft a Letter before Action - if the debtor pays, you will receive,

Debt	£2000.00
Interest	£    16.66
Late payment compensation	£    70.00
Less our fixed fee	£    17.25	(£15.00 + VAT)
Less our recovery fee	£    95.98	(4% + VAT)
Total paid to you	£1973.43

If the debtor does not pay at this stage, we shall issue a claim on your behalf,

Stage 2

Debt (+interest and charge)	£2086.66
Less initial letter charge	£    17.25
Less fixed issue fee	£  172.50	(£150.00 fixed fee + VAT)
Less court fee	£    85.00
Plus recoverable court fee	£    85.00
Plus recoverable costs	£    80.00
Less our recovery fee	£    95.98
Total paid to you	£1880.93

If the debtor does not pay at this stage, we shall enter Judgment on your behalf,

Stage 3

Debt (+interest and charge)	£2086.66
Less initial letter charge	£    17.25
Less fixed issue fee	£  172.50	(£150.00 fixed fee + VAT)
Less court fee	£    85.00
Plus recoverable court fee	£    85.00
Plus recoverable costs	£    80.00
Less judgment fixed fee	£    57.50
Plus recoverable costs	£    22.00
Less our recovery fee	£    95.98
Total paid to you	£1845.43

If the debtor does not pay at this stage, you may enforce the Judgment by way of warrant of execution, third party debt order, attachment of earnings order or charging order.
   
If the debt is contested (for example, if court proceedings are commenced and the debtor defends the claim), the matter will be passed to one of our Commercial Litigation lawyers who will provide advice. Our lawyers are charged out hourly at £185.00 for a partner, £165.00 for a solicitor and £110.00 for a paralegal.

Call us now on 01254606090 or e-mail us to let us assist you with recovering your bad debts, talk to an expert solicitor at Farleys today.