This is the process of recovering money or property from a debtor when they have failed to pay back the debt within a time that was previously arranged.
Example cases
A simple case
An example of a simple straightforward debt would be one where there is no significant dispute of the existence of the debt. If the value of the debt is less than £10,000 you will be able to issue this the small claims court. We will provide you with a clear estimate of costs at the outset and if we consider that our fees to represent you in your debt claim will amount to 50% or more of the overall value of your claim, we might recommend that you represent yourself in your debt claim. This does not mean that we can’t help.
We can draft your debt claim which you can issue yourself. As a guide, the drafting of a straightforward debt claim usually involves between 3 and 5 hours’ work which includes our initial meeting with you, reading and consideration of your relevant documents, and the drafting of your claim.
Our total costs for drafting your claim of this type carried out by a Paralegal is between £480 + VAT of £96 = £576 and £800 + VAT of £160 = £960, plus the cost of the court fee, as set out in the below table.
In relation to timescales, we would generally estimate to be able to draft your claim within two to four weeks from the date of instruction. This is however dependent on us receiving all documentation from you promptly and the complexity of the case.
A standard case
An example of a standard case would be one typically allocated to the Fast Track. Fast Track is suitable for cases which are not overly complex with a value of between £10,000 and £25,000. This could mean that the complexity of the case lies within the amount being disputed in either part or in full. Trials of this type are expected to be completed within a day.
As a guide, the issuing and representation in a standard debt claim usually involves between 30 and 50 hours’ work.
Our total costs for a typical case of this type carried out by a Paralegal is between £4800 + VAT of £960 = £5760 and £8000 + VAT of £1600 = £9600, plus the cost of the court fee at 5% of the value of your claim. There may be other costs accrued in the course of your matter, such as counsel’s fees. These are set out below in our Additional Payments table.
A complex case
An example of a complex debt claim might be one typically allocated to the Intermediate Track. The Intermediate Track is suitable for cases which are not overly complex and where the debt falls between £25,000.00 and £100,000.00. This could mean that the complexity of the case is such that is requires two or less experts and there are no additional factors of complexity which make the claim unsuitable for the Intermediate Track. Trials of this type are expected to be completed in three days or less.
As a guide, the issuing and representation in a standard debt claim usually involves between 40 and 60 hours’ work.
Our total costs for a typical case of this type carried out by a Paralegal is between £6400 + VAT of £1280 = £ 7680 and £9600 + VAT of £1920 = £ 11520, plus the cost of the court fee at 5% of the value of your claim. There may be other costs accrued in the course of your matter, such as counsel’s fees. These are set out below in our Additional Payments table.
Steps in your case
Time Scales
The limitation period for most debt claims is six years from the date of breach, as set out in the Limitation Act 1980.
Representing you in a debt claim from start to finish takes, on average, 12 months from the time we issue your application. Prior to issuing your application, we will always attempt to engage the defendant in pre-action correspondence to try to resolve the issues without court action, which would usually take between one to three months. This can take longer if negotiations are going well and you decide to delay issuing court proceedings and instead spend longer negotiating for a settlement out of court.
The overall process may take longer for example, if the defendant is under Standard Breathing Space / Mental Health Crisis Moratorium, or if unseen delays are encountered through the court. If we are instructed to enforce any judgment obtained, this could extend the timescale and any such extension would be dependent upon the cooperation of the defendant and subject to the timescales of any bailiff service and the defendant’s own ability to pay, such as by way of instalments.
Additional Payments / Costs
|
|
Cost |
VAT |
Total |
|
Fast Track Hearing Fee |
£545 |
No VAT |
£545 |
|
Multi Track Hearing Fee |
£1175 |
No VAT |
£1175 |
|
Court Fee for Money Claims up to £300 |
£35 |
No VAT |
£35 |
|
Court Fee for Money Claims £301-£500 |
£50 |
No VAT |
£50 |
|
Court Fee for Money Claims £501-£1000 |
£70 |
No VAT |
£70 |
|
Court Fee for Money Claims £1001-£1500 |
£80 |
No VAT |
£80 |
|
Court Fee for Money Claims £1501-£3000 |
£115 |
No VAT |
£115 |
|
Court Fee for Money Claims £3001-£5000 |
£205 |
No VAT |
£205 |
|
Court Fee for Money Claims £5001-£10,000 |
£455 |
No VAT |
£455 |
|
Court Fee for Money Claims £10,001-£200,000 |
5% of the claim value |
No VAT |
5% of the claim value |
|
Expert advice and instruction |
£1000 |
£200 |
£1,200 |
|
Counsel's fees |
£1500 - £3000 |
£300 - £600 |
£1800 - £3600 |
|
Process Server |
£50 - £250 |
£10 - £50 |
£60 - £300 |
Additional court fees may apply as set out here.
If your case requires court enforcement, the fee will vary depending on the value of your claim and which court the matter involves.
Factors that can increase your costs
The attitude of the other party will have a significant impact on the fees payable as it can cause delay, likewise if either side fail to negotiate. If instructions or paperwork are requested and not given promptly then this will increase the fees for the case.
The firm’s charges are calculated mainly by reference to the amount of time that is spent on a matter. The Firm’s rates are reviewed annually and we shall inform you promptly of any change. Ordinary letters out and telephone calls are charged at six minute units where the time spent does not exceed this.
The hourly rates and unit charges for members of the Civil Litigation Department are:
|
Veronika Kiss Paralegal |
£160 per hour + VAT (£32) – total of £192 |
£16 per unit + VAT of £3.20 = £19.20 |
|
Jade Hughes Civil Secretary |
£100 per hour + VAT (£20) – total of £120 |
£10 per unit + VAT of £2 = £12.00 |
VAT: please note that all the above will be charged to you with the addition of VAT at the current rate (to meet HMRC re-charge requirements)
Where a matter is dealt with by a legal secretary or non-fee earner to progress it a charge of £100.00 per hour will be made.
These rates reflect the many overheads which, of necessity, a firm of solicitors must incur to run its business.
Fixed Fees
For some new matters, we offer a fixed fee of £200+VAT for up to 1 hour of general legal advice. If you would like to find out more, please contact us and we will provide more detailed information
