Debt Collection Prices
Professional service with a personal touchWe offer a one hour fixed fee meeting for £250 to consider whether insolvency proceedings might be appropriate against individuals leading to a Bankruptcy Petition where the debt owed is £5,000.00 or more or against companies leading to a Winding Up Petition where the debt is greater than £750.00. This will include the preparation of a Statutory Demand if advised and in the case of a company, a search at Companies House. In addition, there will be Process Server’s fees which usually range between approximately £150 to £250 on the basis that service is effected on the first visit.
A debtor has 21 days in which to comply with a Statutory Demand failing which a Bankruptcy Petition can presented. If the (individual) Debtor wishes to dispute the debt, an application to the Court to set the Statutory Demand aside must be made within 18 days from the date of service. A Company must make an application to the Companies Court for an injunction to restrain the presentation of a Winding Up Petition.
If the Statutory Demand is not complied with and a Bankruptcy or Winding Up Petition is to be issued, then our fees will be:
1. Bankruptcy Petition
This can be issued either following the service of a Statutory Demand or an unsatisfied County Court Judgment.
The work includes: –
• Drafting Petition and Witness Statement of Truth, arranging issue of Petition at Court and service on Debtor at £500 + VAT* plus Process Server’s fees (as above);
• Court fees of £280 and Official Receiver’s Deposit of £990;
• Drafting and filing Certificate of Continuing Debt £150 + VAT*
• Drafting and filing List of Creditors £150 + VAT*
• Preparing draft Bankruptcy Order £150 + VAT*
• Attending first hearing of Petition at Slough County Court: £750 + VAT*
For information on fees for further hearings or at other Courts, a fresh estimate will be provided at that stage.
This is all on the basis that the Statutory Demand or Bankruptcy Petition is unopposed. If, however, the Statutory Demand or Bankruptcy Petition is opposed or there is otherwise communication with the Debtor or other Creditors, time will be charged at the rate of £250 per hour + VAT*. If opposed either by application to set aside the Statutory Demand or Bankruptcy Petition fees will be charged at an hourly rate of £250 + VAT* and a fresh estimate will be provided at that stage.
The average timescale from the commencement of Bankruptcy proceedings to the date of the Bankruptcy Order is usually 10 – 14 weeks. This may now be considerably longer due to the changes imposed as a result of the current Covid-19 pandemic.
*VAT is charged at the prevailing rate. The rate is currently at 20%.
Winding up Petition
This can be issued either following a letter before action, late payment letter or the service of a Statutory Demand
The work includes: –
• Drafting Petition and Witness Statement verifying the Petition, arranging issue of Petition at Court and service on Debtor at £500.00 + VAT * plus Process Server’s fees (as above)
• Court fees of £280.00 and Official Receiver’s Deposit £1,600.00;
• Drafting advertisement for publication in the London Gazette £120 + VAT* plus advertisement fee of £84.60 + VAT* where applicable
• Drafting and filing Certificate of Compliance: £150.00 + VAT*
• Drafting and filing List of Creditors: £150.00 + VAT*
• Briefing Counsel to attend the hearing: £120.00 + VAT*
Counsel’s fees for attending first Hearing in the Companies Court in London: £500.00 – £750.00 + VAT*. If Hearing is adjourned or heard at another Court a fresh estimate will be provided at that stage.
This is all on the basis that the Winding Up Petition is unopposed. If, however, the Winding Up Petition is opposed or there is otherwise communication with the Debtor or other Creditors, time will be charged at the rate of £250 per hour + VAT * and a fresh estimate will be provided at that stage.
*VAT is charged at the prevailing rate. The rate is currently at 20%.
The average timescale from date of the commencement of Insolvency proceedings to date of the Winding Up Order is usually 10 – 14 weeks. This may now be considerably longer due to the changes imposed as a result of the Covid-19 pandemic.
Debt Collection
Below are the range of fixed fees for straight forward unopposed claims. Where a matter becomes defended the charging structure reverts to an hourly rate basis of £250 + VAT.
VAT is charged at the prevailing rate. The rate is currently at 20%.
We will advise you further regarding costs and options available to you at that stage.
Business To Consumer Debt Collection
For collection of up to 3 invoices our fees will be:
| CLAIM VALUE | SIMPLE 7 DAY LETTER BEFORE ACTION | LATE PAYMENT 7 DAY LETTER BEFORE ACTION | TO ISSUE COUNTY COURT CLAIM FORM | TO ENTER DEFAULT JUDGMENT AND SEND DEMAND LETTER TO DEBTOR | COURT CLAIM FORM ISSUE FEES |
| Up to £10,000.00 | £75.00 | £125.00 | £170.00 | £120.00 | £35 – £455 |
| £10,001.00 to £25,000.00 | £125.00 | £175.00 | £240.00 | £120.00
|
5% of value of claim |
| £25,001.00 to £100,000.00 | £175.00 | £225.00 | £300.00 | £120.00 | 5% of value of claim capped at £10,000.00 |
For more than three invoices please ask for separate estimate.
The average timescale from date of initial letter to entering judgment is 9 – 14 weeks.
Business To Business Debt Collection
For collection of up to 3 invoices our fees will be:
| CLAIM VALUE | SIMPLE PRE-ACTION PROTOCOL 28 DAY LETTER BEFORE ACTION | TO ISSUE COUNTY COURT CLAIM FORM | TO ENTER DEFAULT JUDGMENT AND SEND DEMAND LETTER TO DEBTOR | COURT CLAIM FORM ISSUE FEES |
| Up to £10,000.00 | £95.00 | £190.00 | £120.00 | £35 – £455 |
| £10,001.00 to £25,000.00 | £145.00 | £260.00 | £120.00
|
5% of value of claim |
| £25,001.00 to £100,000.00 | £195.00 | £320.00 | £120.00 | 5% of value
of claim capped at £10,000.00 |
A Late Payment Letter includes the preparation of a Schedule calculating interest and compensation payments on the unpaid invoice(s) pursuant to the provisions of the Late Payment of Commercial Debts (Interest) Act 1998.
The average timescale from date of initial letter to entering judgment is 5 – 10 weeks.
For more than three invoices please ask for separate estimate.
Key Stages in Debt Collection
The key stages in debt collection by County Court claims are outlined below. However, please note that these times may be varied due to court delays caused by the current Covid-19 situation.
Business to Business:
- 7-day letter of Claim sent to Debtor.
- Between 7 – 14 days thereafter, drafting and issuing Claim Form.
- 21 – 35 days thereafter, assuming no defence filed, application to enter judgment by default.
Business to Consumer:
- 28-day pre-action protocol letter to be sent to debtor.
- Between 7 – 14 days thereafter, drafting and issuing Claim Form.
- 21 – 35 days thereafter, assuming no defence filed, application to enter judgment by default.
Debt Collection Personal:
The debt collection services will only be carried out be very experienced lawyers who have been engaged in debt collection services for many years.
VAT:
VAT is payable on all our debt collection services mentioned above, except there is no VAT payable on court fees and process servers’ fees unless they are registered for VAT.
VAT is charged at the prevailing rate. The rate is currently at 20%.