Legal Fee Information for Debt Claims up to £100,000
Introduction
We have set out below the issues you need to consider in relation to our Legal Fees and disbursements for pursuing a debt of up to £100,000.
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. Our hourly rates for this area of work range from £200.00 plus VAT (£240.00 inc. VAT) to £375.00 (£450.00 inc. VAT).
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 the commencement of your case to the 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.
Debt Recovery/ Litigation can involve many steps from Letter Before Action to Trial be it Small Claims, Fast Track, Intermediate Track or Multi Track. We will endeavour to minimise costs and advise you on a commercial basis and will always try to mediate to avoid unnecessary costs, pressure and time.
Debt value | Court fee | Our fee (plus VAT) | Our fee (inc VAT) | Total |
|---|---|---|---|---|
Up to £5,000 | £205 | £350 | £420 | £625 |
£5,001 – £10,000 | £455 | £500 | £600 | £1,055 |
£10,001 – £100,000 | 5% value of the claim | £750-£1200 | £900-£1,400 | £900-£1,400 + court fee |
The value and complexity of the matter alongside the stage at which the matter is resolved are factors that must be taken into account to confirm the fees in accordance with this scale.
If your matter is simple or low value we will discuss with you other fee options that may be available to ensure our fees are proportionate to the value of the debt.
If your matter becomes complex (see below) our fees may increase further and we will notify you in advance of any increased 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:
a) The transaction is concluded in a timely manner and no unforeseen complication arise.
b) All parties to the transaction are co-operative and there is no unreasonable delay from any parties providing documentation.
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 the bailiff, is needed to collect your debt.
What’s included:
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 claim
• Where no Acknowledgement 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
Our fees do not include:
• Court fees and any other expenses such as Counsel’s fees
• Issue of Insolvency proceedings such as issuing a winding-up petition or bankruptcy petition.
• Pursuing disputed debts
Disbursements and Other Costs
Disbursements may be incurred in the handling of the matter for you. In Debt Claims, fees tend to relate to Counsels’ fees and Court Fees.
• Courts 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.
• Counsel fees - If Counsel is required to be instructed a quotation for their services will be obtained from them and discussed with you before they are instructed to ensure you are fully aware of the fees that will be charged. However, we have given examples of costs below:
o The fees of a barrister vary depending on the experience of the advocate and their expertise. In our experience, the initial fee for a barrister and the first day of the hearing (known as the brief fee) will be in the region of £1,000 - £3,000 plus VAT (£1200 – £3600 Inc. VAT). Each subsequent day could be an additional £500 - £1,500 plus VAT (£600 - £1800 Inc. VAT).
o 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.
Where the firm is required to undertake an Anti-Money Laundering search as part of our Client Due Diligence Process the firm will charge:
• £5.00 plus VAT (£6.00 inc. VAT) for an individual based in the UK
• £12.00 plus VAT (£14.40 inc. VAT) for an individual based overseas or a Corporate Entity.
We charge £10.00 plus VAT (£12.00 Inc. VAT) Electronic money transfer fee (per transfer.
Time Scales
Matters usually take 4-6 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. If enforcement action is needed, the matter will take longer to resolve.
Key Milestones
These are the typical steps we’ll take although individual circumstances differ.
• 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, either drafting and issuing claim or instructing counsel to draft the court papers
• 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
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
• Making or defending a costs 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 6-9 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 the Judgment in default. If enforcement action is needed, the matter will take longer to resolve.
Who will advise you?
Depending on the type of transaction, complexity and experience required we will allocate the most appropriate member of our team to your case once you instruct us.
Regardless of who works on your case, they will be supervised by the head of our litigation and disputes department Andrew Haffner, Solicitor and Partner at Orwins.
For more information on our team members, visit Our People.
Questions
If you have any questions relating to our services and our fees, all our contact information can be found here: Contact Us.