How much are Legal Fees for Debt Recovery?

How much are Legal Fees for Debt Recovery?

Farleys’ Debt Collection services can be structured on a ‘fixed-fee’ basis as set out below.

These costs apply where your claim relates to an unpaid invoice which is not disputed, and enforcement action is not required.

If the invoice is disputed, or there are additional documents to review (other than the invoice), our fixed costs will not apply but we will give you an estimate of the likely costs of pursuing the matter on your behalf, with an explanation of those costs.

Our Fixed Fee Charges

Stage 1 – Letter of Claim

£50 plus VAT of £10, totalling £60, per invoice

Our letters of claim will demand payment of the outstanding debt within 7 days.

Stage 2 – Issuing County Court Claim Form

Timescale: Once the Court has issued the claim, the Defendant shall have a period of 14 days to file a Defence. If the Defendant files an Acknowledgment of Service, indicating an intention to defend the claim, this time limit is extended to 28 days.

Additional services if necessary

The prices stated below are for our legal fees, please note that related disbursements may also be payable for specific services, such as Court or process server fees.

Entering Judgment

• Up to £10,000 –  £50 +VAT of £10, totalling £60.
• Over £10,000 –  £75 +VAT of £15, totalling £90.

An application is made to enter judgment immediately following the expiration of the time limit permitted for the filing of a Defence.

Enforcement of Judgment

• Warrant of Execution – £75 +VAT of £15, totalling £90*
• Attachment of Earnings – £175 +VAT of £35, totalling £210*
• Third Party Debt Order – £275 +VAT of £55, totalling £330*
• Charging Order over property – £500 + VAT of £100, totalling £600*

Anticipated disbursements

• Court application fees –  £110
• Representative’s fees- will depend upon hearing location

Timescale: A typical timescale for enforcing a judgment is 8 – 12 weeks.

Insolvency

Issuing a Statutory Demand – Winding Up /  Bankruptcy – £195 + VAT of £39, totalling £234*

Anticipated disbursements

• Process server fees: £125 plus vat of £25, totalling £150.

Timescale: Once a statutory demand has been served upon the Debtor, the Debtor shall have 21 days to make payment.

Bankruptcy Petition – £1500 +VAT of £300, totalling £1800*

Anticipated disbursements

• Process server fees – £125 plus vat of £25, totalling £150
• Court application fee – £302
• Official Receiver Deposit – £990
• Representative’s fees -will depend upon hearing location

Winding Up Petition – £1,500 + VAT of £300, totalling £1,800.

Anticipated disbursements

• Process server fees – £125 plus vat of £25, totalling £150.
• Court application fee – £302
• Official Receiver Deposit – £1600
• Representative’s fees – Will depend upon hearing location
• London Gazette Advertisement -£101.52 plus vat of £20.30, totalling £121.82.

A typical timescale for obtaining a bankruptcy order / winding up order is 8 – 12 weeks from the presentation of the petition.

*Fixed fee includes one attendance at Court and does not include court fees, process server fees, advertisement fees, Official Receiver fees, Land Registry fees, bailiff fees or barrister’s fees.

Anyone wishing to proceed with a claim should be aware of the following

• Interest and statutory compensation may take the debt into a higher banding (see above) which in turn may incur a higher cost
• Disbursements such as Court fees will vary depending upon the value of the debt.
• Our fixed fees do not include providing you with advice in relation to your claim and merely cover the transactional process.
• The VAT element of our fees cannot be reclaimed from your debtor.

What qualifications do the team hold?

Specific team members experience and expertise can be seen in individual staff profiles.