Debt Collection Prices

Transparent fixed-fee pricing for debt collection, statutory demands, bankruptcy and winding up petitions.

Debt Collection Prices

Professional service with a personal touch

Insolvency

We 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 or more, or against companies leading to a Winding Up Petition where the debt is greater than £750. 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 be 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, our fees will be as follows:

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 — £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

Bankruptcy Petition — Further Information

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 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. 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.

VAT is charged at the prevailing rate, currently 20%.

Winding Up Petition

This can be issued either following a letter before action, a 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 — £500 + VAT, plus Process Server's fees (as above)
Court fees of £280 and Official Receiver's Deposit of £1,600
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 + VAT
Drafting and filing List of Creditors — £150 + VAT
Briefing Counsel to attend the hearing — £120 + VAT
Counsel's fees for attending first hearing in the Companies Court in London — £500–£750 + VAT

Winding Up Petition — Further Information

If the 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 the Winding Up Petition is opposed, or there is otherwise communication with the Debtor or other Creditors, time will be charged at £250 per hour + VAT.

The average timescale from commencement of Insolvency proceedings to the date of the Winding Up Order is usually 10–14 weeks.

VAT is charged at the prevailing rate, currently 20%.

Debt Collection

Below are the range of fixed fees for straightforward, unopposed claims. Where a matter becomes defended, the charging structure reverts to an hourly rate of £250 + VAT.

VAT is charged at the prevailing rate, currently 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. For more than three invoices, please ask for a separate estimate. The average timescale from date of initial letter to entering judgment is 9–14 weeks.

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	£350	£350	£500	£400	£35–£455
£10,001 to £25,000	£350	£350	£600	£500	5% of claim value
£25,001 to £100,000	£500	£350	£600	£500	5% of claim value, capped at £10,000

Business to Business Debt Collection

For collection of up to 3 invoices. A Late Payment Letter includes the preparation of a Schedule calculating interest and compensation payments on the unpaid invoice(s) pursuant to 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 a separate estimate.

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	£350	£500	£400	£35–£455
£10,001 to £25,000	£350	£600	£500	5% of claim value
£25,001 to £100,000	£500	£600	£500	5% of claim value, capped at £10,000

Key Stages in Debt Collection

The key stages in debt collection by County Court claims are outlined below.

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 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.

Our Debt Collection Team

Debt collection services are carried out by very experienced lawyers who have been engaged in debt collection for many years.

VAT

VAT is payable on all debt collection services listed above. 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, currently 20%.