Appointment further extends Corporate law team
Midlands law firm mfg Solicitors has announced the appointment of experienced corporate solicitor...
Thank you for looking at our Debt Recovery services. Debts can arise in all walks of life and we regularly advise and assist businesses and individuals alike.
The bulk of our debt recovery instructions come from businesses across various sectors. With many years of experience and strong expertise in litigation both in and out of court, our debt recovery service is fast, efficient and economical.
Why Us
We have an experienced team who can assist you with recovering both disputed and undisputed debts.
We pride ourselves on exceptional customer care skills enabling you to send out the right message and retain the goodwill of your customers whilst recovering outstanding payments.
We can offer you clear, practical advice and will discuss all the options available to establish the most appropriate way of dealing with debtors. We have tried and tested processes in place to ensure we can recover debts quickly, efficiently and cost-effectively, with transparent fixed fees.
We are proud to hold Lexcel Accreditation, issued by the Law Society. This involves the firm undergoing a rigorous audit process which ensures we maintain high levels of client care.
Pricing
We appreciate that the fees involved in debt recovery are important to you.
We review our fees on a regular basis, considering client’s feedback, to ensure we continue to offer a cost-effective debt recovery service.
We typically work on a fixed fee basis, so that from the outset you know what the fees will be for your transaction.
Standard Undisputed Debt Recovery Charges
The fees and disbursements below provide an indication of the cost of progressing a debt recovery matter with us.
Wherever possible, we would look to recover some or all costs by applying interest and charges to the debt in accordance with any contractual terms that permit the recovery of costs incurred or as provided by statute.
All fees and disbursements are subject to VAT at 20% with the exception of Court fees where no VAT applies.
Pre-legal fees
To review invoices, calculate interest on debt and to consider cost recoverability under the Late Payment of Commercial debts (Interest) Act 1998.
We add reasonable recoverable legal costs in accordance with 5A(2A) of the Late Payment of Commercial Debts (Interest) Act 1998 to the debt, where applicable, so they are potentially recoverable from the Debtor.
This fee is payable irrespective of success.
Our Fee: £150
Letter before action (fees not always recovered from debtor)
Amount of Debt | Charge + VAT at 20% |
|---|---|
£0-1,000 | £25.00 |
£1000.01 - £4,999.99 | £35.00 |
£5,000 - £9999.99 | £50.00 |
£10,000 - £24,999.99 | £75.00 |
£25,000+ | £100.00 |
Further work conducted on your behalf such as collections, pre-legal activity, dispute resolution or negotiations for settlement will be charged on a time spent basis in accordance with our hourly rates as set out within the table below***, unless agreed otherwise.
Legal Proceedings (not including Court fees or other disbursements)
We also add reasonable recoverable costs in accordance with 5A(2A) of the Late Payment of Commercial Debts (Interest) Act 1998 to the debt for legal proceedings, to seek recovery of these costs from the Debtor. However, such recovery is not guaranteed in every case and if the costs are not recovered, we will charge nominal fees of**.
Claim Form
We will commence Court Proceedings against your debtor on your behalf.
Amount of Debt | **Charge (+VAT) | Court Issue Fee | Fixed Costs* |
|---|---|---|---|
Up to £300 | £200.00 - £500.00 | £35.00 | £50.00 |
£300.01 - £500 | £200.00 - £500.00 | £50.00 | £50.00 |
£500.01 - £1,000 | £200.00 - £500.00 | £70.00 | £70.00 |
£1,000.01 - £1,500 | £200.00 - £500.00 | £80.00 | £80.00 |
£1,500.01 - £3,000 | £200.00 - £500.00 | £115.00 | £80.00 |
£3,000.01 - £5,000 | £200.00 - £500.00 | £205.00 | £80.00 |
£5,000.01 - £10,000 | £200.00 - £500.00 | £455.00 | £100.00 |
£10,000.01 - £15,000 | £400.00 - £800.00 | 5% of the value of the Claim | £100.00
|
£15,000.01 - £50,000 | £400.00 - £800.00 | ||
£50,000.01 - £100,000 | £400.00 - £800.00 | ||
£100,000.01 - £150,000 | £1,000.00 - £1,500.00 | ||
£150,000.01 - £200,000 | £1,000.00 - £1,500.00 | ||
£200,000.01 + | £1,000.00 - £1,500.00 | £10,0000 | £100.00 |
To issue proceedings in the County Court other than a money claim | To be agreed | £365.00 | N/A |
To issue proceedings in the High Court other than a money claim | To be agreed | £626.00 | N/A |
*Indicates what is recoverable from your debtor. The Issue fees shown above are normally recoverable from the debtor.
Standard fees apply to a referred debt of up to £10,000.00.
Judgment
For judgments relating to debts of £0.00 - £5000.00, the following charges apply:
Service | Charge (+VAT) | Fixed Costs* |
|---|---|---|
Default of Acknowledgement of Service | £50.00 | £22.00 |
Default of Defence | £50.00 | £25.00 |
Admission + Offer to pay by instalment | £50.00 | £40.00 |
Admission Court decides date and time of instalment | £50.00 | £55.00 |
For judgments relating to debts of %5000.01 and over, the following charges apply:
Service | Charge (+VAT) | Fixed Costs* |
|---|---|---|
Default of Acknowledgement of Service | £50.00 | £30.00 |
Default of Defence | £50.00 | £35.00 |
Admission + Offer to pay by instalment | £50.00 | £55.00 |
Admission Court decides date and time of instalment | £50.00 | £70.00 |
*Indicates what is recoverable from your debtor
Fixed fee offering – claims valued up to £10,000.00 (all included)
We offer a fixed fee for the conclusion of small claims matters (whether it be by way of early settlement or determination, court judgment or order or discontinuance). Please note that this figure excludes addressing any counterclaim that may be issued in response to your claim.
Claim Value | |
|---|---|
£0.00 - £5000.00 | £3,000.00 + VAT and disbursements |
£5001 - £10,000.00 | £5,000.00 + VAT and disbursements |
Non-standard and defended cases
If a case is defended and outside the small claims track (over £10,000), complex or relates to an application filed by a defendant, it will be placed with our team of defended lawyers at the hourly rates below.
Upon a case being defended we will advise as to the merits of the defence and provide a full breakdown of likely costs of continuing the action.
NB: If a case is contested, the likelihood of recovering costs pursuant to the Late Payment of Commercial Debts (Interest) Act 1998 is reduced, but full recovery will still be sought where this legislation applies.
| *** Charge (+VAT) |
|---|---|
Partner | £300.00 - £375.00 per hour |
Consultant Barrister | £290.00 - £325.00 per hour |
Associate Solicitor | £240.00 - £290.00 per hour |
Assistant Solicitor | £185.00 - £230.00 per hour |
Legal Executives | £150.00 - £225.00 per hour |
Paralegal | £130.00 - £170.00 per hour |
Trainee | £134.00 per hour |
Personal Injury and Clinical Negligence Solicitors (including Partners) | £250.00 - £300.00 per hour |
Standard Legal Fees, Court Fees and Disbursements
Applications and Insolvency disbursements (external costs)
*** Fee | |
|---|---|
Application by Consent or without notice | £123.00 |
Application for a Charging Order | £135.00 |
Application on notice where no other fee is specified | £313.00 |
Sealing a Writ or Control (High Court Enforcement) | £80.00 |
HCEO Abortive fee | £75.00 plus VAT |
Insolvency Proceedings
If after initial assessment your debt is clearly undisputed, then as an alternative to Court proceedings we can instead commence insolvency proceedings against your debtor on your behalf.
To utilise insolvency proceedings the debt owed by an individual must be at least £5,000, and the debt owed by a business must be at least £750.
Charges | Disbursements | |
|---|---|---|
Statutory Demand | £450.00 plus VAT | Process Servers Fee (circa £100 plus VAT depending on location) |
Bankruptcy Petition (Individual) | £1,250.00 plus VAT | HMLR Bankruptcy Search - £6.00 |
Winding Up Petition (Corporate) | £1,750.00 plus VAT | Issue Fee - £343.00 |
Other disbursements may be payable – TBC.
Statutory Demand fees are not normally recoverable from your debtor.
Petition fees are normally recoverable from your debtor.
All fees and disbursements are subject to VAT at 20% with the exception of Court fees where no VAT applies.
Timescales
Upon receiving your instruction, we will acknowledge it within 42 hours and issue the initial Letter Before Claim to the debtor within 72 hours, capacity of the Team permitting. For commercial (business) debts, the debtor will be given 7 days to make payment, propose a payment arrangement, or raise any dispute.
For individual debtors (including sole traders), the process follows the Pre-Action Protocol for Debt Claims under the Civil Procedure Rules. These individuals are given 30 days to respond, allowing time to seek independent legal advice if needed.
If legal proceedings are commenced and no response is received, the debtor has 21 days before we can apply for judgment (a County Court Judgment or CCJ). This includes 7 days for service of the claim and 14 days to respond. Once a request for judgment is submitted, we typically expect to receive a default judgment within 6 weeks, subject to the Court’s workload.
If the claim is defended, the duration will depend on the debtor’s level of engagement and the Court’s scheduling.
A Small Claims Track matter (up to £10,000) may take 9–12 months to reach mediation or trial.
Fast Track (£10,000–£25,000) and Multi-Track (over £25,000) matters can take up to 18 months to reach trial.
Throughout the defended process, we will aim to maintain dialogue with the debtor to explore the possibility of settlement. While a settlement may involve accepting a reduced sum, it can result in faster recovery and a reduction in legal and court costs.
For enforcement of a judgment debt over £600, we typically instruct a High Court Enforcement Officer (HCEO). Once the judgment is transferred to the High Court, the HCEO issues a Notice of Enforcement, giving the debtor 7 days to pay or respond. If there is no response, an enforcement officer will attend the debtor’s premises within a further 7 days to collect payment or seize assets for sale at auction. This stage typically takes 4–6 weeks, though it rarely proceeds this far.
If you opt to serve a Statutory Demand, once drafted, it must be personally served on the debtor (individual) or delivered to a company’s registered office or last known business address. This process usually takes 7–14 days, depending on the debtor’s availability and confirmation of identity
After service:
The debtor has 18 days to apply to set aside the demand, or 21 days to make payment.
If they fail to do so, you may proceed with a bankruptcy petition (individual) or a winding-up petition (company).
Once filed, the Court typically takes around 14 days to seal the petition and will list the hearing within 8–12 weeks. Provided there are no adjournments or additional applications, and if payment or settlement is not reached, the Court will make the order at the hearing.