FOR BUSINESSES (DEBTS UP TO £100,000) – RANGE OF COSTS
At Foys, we deal with debt recovery issues for both businesses and individuals.
In respect of cost recovery for businesses, we charge on a time spent basis. The total cost will depend on the level of complexity and value of debt and of course whether or not the matter settles before any final Court hearing.
Work carried out will normally be charged at our standard hourly rates, which are as follows (as per professional guidelines for our geographical area):-
Solicitors with over eight years post qualification experience including at least eight years litigation experience.
Solicitors and Legal Executives with over four years post qualification experience including at least four years litigation experience.
Other Solicitors and Legal Executives and Fee Earners of equivalent experience
Trainee Solicitors, Paralegals and other Fee Earners.
£201.00 per hour
£177.00 per hour
£146.00 per hour
£110.00 per hour
The above rates do not include VAT.
“Disbursements” referred to in this pricing structure relate to additional fees payable during the course of your instructions to us. Potential disbursements include travelling and parking expenses to attend meeting or hearings; Expert Report fees; Court fees etc. We handle the payment of the disbursements on your behalf to ensure a smoother process.
In respect of Court fees, when a claim is issued at Court, a Court issue fee is payable and the table below illustrates the relevant Court fees as at November 2018 (these fees are subject to change):-
Up to £300
£300.01 to £500
£500.01 to £1,000
£1,000.01 to £1,500
£1,500.01 to £3,000
£3,000.01 to £5,000
£5,000.01 to £10,000
£10,000.0l to £100,000
Paper form fee
5% of the claim
Online claim fee
4.5% of the claim
Claims up to and including £10,000 are usually allocated to what is known as the Small Claims Track of the County Court, which are typically claims requiring up to half a days Court time for a final hearing. Please note that it is rare for either party to recover their costs for a Small Claims Track matter (except for limited recoverable fixed costs).
Claims from £10,000 – £25,000 are usually allocated to what is known as the Fast Track of the County Court. This is a more involved and expensive process in comparison to the Small Claims Track.
Claims where the debt is between £25,000.01 – £100,000 are usually allocated to what is known as the Multi Track of either the County Court or the appropriate sub division of the High Court. This is the most involved Track of the Court and involves an even more lengthy and expensive process. One of the additional features of the Multi Track is the requirements for what is known as Cost Management and Budgeting, which in itself is quite an involved and costly process.
The successful party (be it Claimant or Defendant) in either a Fast Track or Multi Track case is usually awarded costs on what is known as a standard basis.
As an estimate of costs we would expect costs for dealing with debt recovery matters to be as follows:-
- Small Claims Track – £2,000 – £3,000 plus VAT and disbursements.
- Fast Track matters – £10,000 – £20,000 plus VAT and disbursements.
- Multi Track cases – £40,000 or more plus VAT and disbursements.
The above estimates will depend on the level of complexity, whether or not the debt is disputed and whether or nor enforcement action is required if a claim is successful. These cost estimates are for cases that proceed to trial. We would expect costs to be less (in some cases significantly) if the claim settles without the need for a final hearing.
Our fees mentioned above include:-
- Taking your instructions and reviewing documentation.
- Undertaking appropriate Searches.
- Sending a Letter Before Action.
- Receiving payment and sending onto 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 Judgement in default is received, write to the other side to request payment.
- If payment is not received, providing you with advice on next steps and likely costs.
- If the Claim is defended then representing you up to and including a final hearing, including consideration of both parties’ documents, preparation of any Cost Budget, preparation of Trial Bundles, preparation of Witness Statements, Instructions to a Barrister for the hearing and representation at any hearing.
The length of time it takes to deal with a debt recovery matter will depend on the complexity and whether or not a case is defended. If a claim is not defended and a Defendant makes payment promptly upon either receipt of our Letter before Action or if Judgement in default is obtained, we would expect it to take approximately 4 – 26 weeks (taking into account potential Court delays), from receipt of instructions from you to receipt of payment from the other side. Please note such timescales relate only to undefended claims where the other side pays promptly on receipt of letter or Judgement in default.
We provide an initial free consultation which will allow us to explore different funding options with you and prospects of your case.
You will find further relevant information about debt recovery claims on our website.
Debt recovery claims for businesses will be handled by our Mr Michael Doherty – Associate Solicitor.
Michael Doherty – Associate Solicitor
Michael is a Commercial and Civil Litigator, based in our Worksop Office. Michael covers Company Litigation and Debt matters both in Worksop and in other areas. Michael qualified as a Solicitor in 2007 and has significant experience in dealing with disputes for both Companies and individuals.