Money owed to your business can have a serious impact on your overall cash flow, overhead costs, profits, error margins and ability to pay staff, creditors or purchase more stock. Commercial debt is an issue that needs to be addressed promptly for the best outcomes and tactfully to ensure all monies are recovered.
QualitySolicitors Parkinson Wright's commercial law team offer cost-effective debt recovery solutions to help with your cash flow. Our team can also help with everything from managing letters before action or Debt Relief Orders for individuals debtors, negotiating informal arrangements, responding to bankruptcy notices or commercial lease forfeitures.
The following 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.
Similarly, if enforcement action is required, 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. for a warrant of execution), or an hourly rate if more complex enforcement work is needed.
Enforcement action will involve disbursements (Court Fees) depending upon the type of enforcement action taken
There is no VAT on Court Fees.
| Debt value | Court fee | Our fee (plus VAT) |
|---|
| Up to £10,000 | £35.00 - £455.00 | £500 + VAT @ 20% |
| £10,001 - £25,000 | 5% value of the claim | £750 + VAT @ 20% |
| £25,001 - £50,000 | 5% value of the claim | £1,000 + VAT @ 20% |
| £50,001 to £100,000 | 5% value of the claim | £1,500 + VAT @ 20% |
Anyone wishing to proceed with a claim should note that:
- The VAT element of our fee cannot be reclaimed from your debtor if you are VAT registered.
- 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
- In all cases to comply with the anti-money laundering regulations there will be a charge of £25.00 + vat @ 20% per client for identity verification.
The above fees include:
- 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 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, providing you with advice on next steps and likely costs
Matters usually take 4 - 16 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 and providing the claim is not disputed. This is on the basis that the other side pays promptly on receipt of demand for payment or Judgement in default of a response to the claim. If the claim is defended and/or enforcement action is needed, the matter will take longer to resolve.