Range of fixed fees for small businesses claiming a business debt that is undisputed
Court claim fee
These costs apply where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which could be on a fixed fee (e.g. if a one-off letter is required), or an hourly rate if more extensive work is needed.
| Debt Value | Our Fee | (Plus VAT) | Total |
| Up to £5,000 | £600 | (£120 VAT) | £720 |
| £5,001 -£10,000 | £750 | (£150 VAT) | £900 |
| £10,001 -£50,000 | £1,500 | (£300 VAT) | £1,800 |
Anyone wishing to proceed with a claim should note that:
- Court fees are not included in the above quotation.
- If a company search is required, the fee for this disbursement is £50 plus VAT.
- The VAT element of our fee cannot be reclaimed from your debtor.
- Interest and compensation may take the debt into a higher banding, with a higher cost.
- The costs quoted above only apply where the debtor is a limited company or a firm (partnership), not an individual. If the debtor is an individual, please contact us for a quotation.
- The costs quoted above are not for matters which are disputed and where enforcement action, such as the bailiff, is needed to collect your debt.
Our fee includes the following:
- Taking your instructions and reviewing limited documentation
- Sending a letter before action
- Receiving payment and sending to you, or if the debt is not paid, drafting and issuing a claim form
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgment in default
- When Judgment in default is received, writing to the other side to request payment
- If payment is not received within X days, providing you with advice on the next steps and likely costs
Our fee does not include the following:
- Disbursements are costs related to your matter that are payable to third parties, such as court fees and company search fees.
Letters before action sent to companies in the U.K. usually require the debtor to pay within 14 days. If the debt is not paid within this time, we will start legal proceedings to recover your money, subject to your instructions. We may request clarification or further evidence if not already sent in order to draft the Claim Form. It is advisable to undertake a company search prior to issuing court proceedings to try to establish if the company is likely to still be solvent and to have the means to pay.
Once court proceedings have been issued, the court will send a copy of the claim to the debtor by first-class post. A debtor has 14 days from the date of service in which to file a defence or acknowledgement of service. After the 14-day period has expired, we can apply to the court to enter Judgment in default provided that the debtor has not filed an acknowledgement or a defence. It usually takes the court about 10 working days to enter judgment following receipt of a request to enter judgment but it does depend on the court. Once a judgment has been obtained, we will write to the debtor to request payment. If the debtor does not pay, we will advise you on enforcement action and the likely cost involved.
Basis of cost information – Debt Recovery
Court claim fee
These costs apply where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which would be on an hourly rate
| Debt Value | Court Fee |
| Up to £300 | £35 |
| £500-1,000 | £70 |
| £1,000-1,500 | £80 |
| £1,500-3,000 | £115 |
| £3,000-5,000 | £205 |
| £5,000-10,000 | £455 |
| £10,000+ | 5% of the claim value |
Our hourly legal fees and team members
£250+VAT – Eileen Kilroy and Tony Lancasters
£140+VAT – Trainee Solicitors/Paralegals and Other Fee Earners
Key stages:
- 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 claim
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgement in default
- When Judgement in default in received, write to the other side to request payment
- If payment is not received within 14 days, providing you with advice on next steps and likely costs
- How long will it take to complete the debt collection?
Matters usually take 10-12 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgement in default. But if enforcement action is needed, the matter will take longer to resolve. If the claim is disputed then it will take approximately 12 months from when the claim was issued. If the matter goes to trial then the case could take 2-3 years.
For more information, please contact us.