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Commercial (business to business) Debt Recovery Costs Information

Legal Fee Information for
Debt Claims up to £100,000

At Borneo Martell Turner Coulston we specialise in providing clients with tailored debt recovery advice and procedures, utilising the Practice Direction- Pre-Action Conduct and Protocols (“the Protocol”).

We do not provide volume debt recovery services and pride ourselves in going that extra mile by providing clients with bespoke advice relevant to the particular debt in question. On this basis we recommend that clients contact us in the first instance to discuss the proposed fees in recovering the debt, not only so we have a better understanding of the debt itself but also so the estimate is as close as possible to the amount which you are charged.

Legal Fees

Legal Fees are the amount you will be required to pay for all the work performed by us in actioning your instructions from commencement of your case to conclusion. VAT will be payable on our fees and some disbursements, currently 20% and we will clearly confirm which disbursements carry VAT in our formal quotation or as we advise you to incur them.

The following lawyers deal with debt recovery work: –

  • Sharon Hundal – Partner (Qualified in 2005) £300 per hour plus £60 charged at the current rate of 20% – £360 total
  • Tim Vaughan – Consultant (Qualified in 1975) £325 per hour plus £65 VAT charged at the current rate of 20% – £390 total
  • Tom Bodkin – Partner (Qualified in 2016) £300 per hour plus £60 VAT charged at the current rate of 20%- £360 total
  • Connor Williams – Litigation Executive £250 per hour plus £46 VAT charged at the current rate of 20% – £230 total

Although we are unable to give a fixed price for our costs, assuming that the debt is undisputed and legal proceedings/ enforcement action is not required we offer the following guideline costs estimates:

An undisputed debt claim of up to £100,000:

  • £750.00 – £2,000.00 plus VAT (£900.00 – £2,400.00 Inc. VAT) to take instructions and review limited documents ancillary to the debt and send a letter of claim to the defendant.
  • £2,000 – £4,000 plus VAT (£2,400.00 – £4,800.00 Inc. VAT) to include the items listed above and issuing a Claim Form at Court.

A disputed debt claim of up to £100,000:

  • A range of between £20,000 – £30,000 plus VAT (£24,000.00 – £36,000.00 Inc. VAT) which will include taking instructions from you, reviewing relevant documents ancillary to the debt, sending a letter of claim to the defendant and all procedures taking the claim through to trial.

Please note that the above fees exclude any third-party disbursements.

We will charge the sum of £30 plus VAT (£36 inc. VAT) for electronic money transfers.

If the matter were to become unduly complex or protracted, then it is likely that our fee estimate will change and if this is the case then we would discuss this with you in the first instance, so you are aware of any potential further costs.  

Should legal proceedings need to be issued at court then your matter will separately necessitate payment of a court fee, details of which are set out below:

Claim Amount

Claim Fee

Up to £300

£35

£300.01-£500

£50

£500.01-£1,000

£70

£1,000.01- £1,500

£80

£1,500.01- £3,000

£115

£3,000.01-£5000

£205

£5,000.01-£10,000

£455

£10,000.01-£100,000

5% of the claim

Anyone wishing to proceed with a claim should note that:

  • 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 are not for matters where enforcement action, such as a bailiff, is needed to collect your debt.

Stages of the process – Our fee includes:

  • 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 the claim at court.
  • Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgment in Default.
  • When Judgment in Default is 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.

If at any stage our fees change, we will notify you and discuss the reason for any changes. This would typically occur if you change your instructions or your case involves an unforeseen complexity.

Our average fees assume that:

  1. The transaction is concluded in a timely manner and no unforeseen complication arise.
  2. All parties to the transaction are co-operative and there is no unreasonable delay from any parties providing documentation.

Disbursements and Other Costs

Disbursements may be incurred in the handling of the matter for you. In debt claims, fees tend to relate to Counsel’s fees and Court Fees. This is not included in our hourly or agreed fixed fees. We handle the payment of the disbursements on your behalf to ensure a smoother process. VAT will be payable on some disbursements, currently 20% and we will clearly confirm which disbursements carry VAT in our formal quotation or as we advise you to incur them. The disbursements for debt recovery matters may include:

  • Counsel’s (Barrister) fees:£750 – £5000 plus VAT (£900 – £6,000 Inc. VAT) depending on the seniority of the barrister and complexity of the matter. If you want a very experienced barrister, then the cost is likely to be more. You may also incur additional charges such as travel costs for us to attend meetings and hearings.
  • Court Fees – The following link sets out the current court fees https://www.gov.uk/make-court-claim-for-money/court-fees. These are only necessary where we are required to issue a claim form via the court.

Factors that could make a case more complex 

The following factors may make your case more complex and impact on your legal fees and disbursements:

  • The matter is defended 
  • Judgement is obtained and needs to be enforced for example:
    • Instruction of a Bailiff;
    • Attachment to earnings; or
    • An alternative method of enforcement.
  • Making or defending a cost’s application 

Should any of these factors occur we will notify you and discuss with you any increase in our legal fees or disbursements. 

How long will my claim take?

Matters usually take between 4 – 12 weeks from receipt of instructions from you to receiving a Letter of Response from the other side. At that point we will be able to advise you as to whether or not court proceeding need to be issued in attempt to recover any balance owed. If proceedings are issued it may take up to 12 months to conclude them. Should enforcement action be needed, the matter will take longer to resolve.

Should you require any assistance with collecting any commercial debt then please do not hesitate to contact our dispute resolution department on 01604 622101 who will be delighted to help.

Fee Earners

We have several members of the team who may work on your matter and their details are set out above. Regardless of who works on your matter, they will be supervised by Sharon Hundal who is a partner and head of dispute resolution. For more information on our team members, please visit our meet the team page.

Questions

If you have any questions relating to our services and our fees, please contact us on 01604 622101

Borneo Martell Turner Coulston