Our Debt Collection service usually begins with a letter before action being sent to the debtor.
Most clients have already sent several reminders to the debtor before they consider instructing a solicitor.
Many debt collectors like to threaten insolvency or bankruptcy by sending a statutory demand and delivering it in person via a process server. This can be intimidating, but in our experience, this is not a cost-effective approach, unless you actually intend to follow through with your threats. Furthermore, if the debt is disputed, the debtor could challenge a statutory demand which if successful could lead to a costs order being made against you.
You should also bear in mind that if your debtor does become insolvent or bankrupt at any stage of the process then you are unlikely to recover anything anyway.
Court Judgements and Enforcements
Before issuing court proceedings, you should consider whether the debtor has the assets to pay your debt. If not, then obtaining a court judgment against them may be ineffective in recovering any money from them. However, if you do obtain judgment then there are several different enforcement options available to you, which we discuss here: Understanding Enforcement Options
As Solicitors, we have an advantage over debt collection agencies in that we have experience acting for both debtors and creditors, from the initial letter before action right through to the enforcement procedures, including bankruptcy and insolvency. We will advise you regarding the various legal remedies available to you to recover your money and which ones are most appropriate and cost-effective for your specific matter.
Debt Collection from £50 plus VAT
We therefore usually recommend that we send just one solicitors’ letter by first class post threatening legal action. For most debts as little as 7 days notice can be given and for this service we will charge you £50 + VAT. We usually recommend that this letter is not sent using registered post or other signed for delivery service as documents are often deemed to be delivered provided you can provide evidence of posting. In other words, you do not have to prove that there were received only that they were posted. After that, if no payment is received within the time limit we normally advise you to issue court proceedings.
If the debt is between a business and an individual, or a sole trader, a pre-action protocol applies and you are required to provide the debtor with certain specific information and allow 30 days for a response to be received before issuing proceedings. We will advise you if this applies to your debtor and will ensure that the required information is provided to the debtor.
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.
|Value of Claim (including interest)||Type of Claim||Paper Claim Form Fee||Online Claim Form Fee||Initial Advice (Fixed Fee)||Full Representation (plus VAT)|
|Up to £300||Small Claim||£35||£25||£95||£250-£750|
|£300.01 to £500||Small Claim||£50||£35||£95||£250-£750|
|£500.01 to £1,000||Small Claim||£70||£60||£95||£250-£750|
|£1,000.01 to £1,500||Small Claim||£80||£70||£95||£250-£750|
|£1,500.01 to £3,000||Small Claim||£115||£105||£95||£250-£750|
|£3,000.01 to £5,000||Small Claim||£205||£185||£95||£250-£750|
|£5,000.01 to £10,000||Small Claim||£455||£410||£95||£250-£750|
|£10,000.01 to £25,000||Fast Track||5% of the claim||4.5% of the claim||£95||£500-£3,000|
|£25,001-£100,000||Multi Track||5% of the claim||4.5% of the claim||£95||£1000- £10,000|
|£100,000.01- £200,000||Multi Track||5% of the claim||Unable to issue online||£95||£1000- £10,000|
|More than £200,000||Multi Track||£10,000||Unable to issue online||£95||£1000- £10,000|
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 based on the debt being undisputed and enforcement action, such as the bailiff, is needed to collect your debt not being required.
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 Acknowledgment of Service or Defence is received, applying to the court to enter Judgment in default
- When Judgment in default in received, write to the other side to request payment
- If payment is not received within 7 days, providing you with advice on next steps and likely costs
Our fee does not include:
- Pre Action Correspondence with the debtor or their solicitor
- Service of the Claim Form by any method other than first class post (for example via personal service or where the debtor lives abroad)
Matters usually take between 6 weeks – 10 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether it is necessary to issue a claim and the progression of the claim.
This is on the basis that the other side pays promptly on receipt of Judgment in default.
If enforcement action is needed, the matter will take longer to resolve and future fees will be involved, see Understanding Enforcement Options
For all other debts, initial advice can be given via a one-hour fixed fee meeting for £95 including VAT. Thereafter, we will give you an estimate and we will not exceed that estimate without getting your permission first. If appropriate, we will offer you a fixed fee for a fixed amount of work. We also offer Pay As You Go Legal Service, whereby you only pay for the legal services you actually want.
Charlotte Fox handled my father’s Will in a professional and timely way. I would recommend them as solicitors for their excellent service
Excellent service and advice I would certainly use Barrett and Co again. Justin was very professional and knowledgable enabling me to achieve my desired outcome and cannot thank him enough. N
Highly recommended solicitors. Our experience of using Barrett and Co has been very positive, responses have always been on time and informative. We won't hesitate to use again should we need to.
I found Barrett and Co to be extremely helpful during a very stressful time. Paul and his trainee Nicholas were always quick to answer any questions I had and never failed to reassure me. I am glad I put my trust in them and would wholeheartedly recommend their services to others.
As I suppose like most people, my legal requirements have mainly revolved around house purchases and Will writing. Therefore when out of the blue I needed legally binding contractual advice I turned to Justin Saddler at Barrett & Co who made everything simple and understandable. Whats more he was able to add a little humour to the situation to make the process almost enjoyable.
Like many people I only have rare occasions to visit a solicitor, which can be daunting due to preconceptions and the unforeseen nature of the visit. However, when I spoke with Justin Sadler on an employment issue he was very quick to gauge what my requirements were and was able to adjust his explanation of legal documents to a level I was comfortable with. His quick grasp of the situation and legal knowledge meant that in the limited time we had he could concentrate on the pertinent areas and I came away with a much improved understanding of the issue. I was also very grateful to Justin for putting some real world context around the situation. This really helped tie the legal situation to the reality along with some practical advice that not only gave me understanding of how flexible the process was but also kept potential costs to a minimum. I would recommend Barrett and Co for their practical approach and openness in their dealings. They are definitely there to support you as their client rather than just do the legal bit.
I’ve known Justin Sandler for some years now having advised on some employment redundancy issues plus some property boundary challenges for recently My first engagement with Barrett & co being in 2005 when I moved into the Reading area. Highly recommend for friendly and competitive charged advice and support .
Very support and efficient: I worked with Justin Sadler on a couple of employment law items. Justin is very knowledgeable, supportive and really put me at ease. I would highly recommend him & Barrett & Co.
Debt Recovery Testimonials
"Thank you very much for your help, also please do convert my special thanks to Mr Sadler, he was indeed helpful and simplified the whole process of recovering my debt in minutes. I surely would recommend your services to friends and family of mine in desperate need and also will come back to you should my situation get worst and need legal help. I am glad I came across your firm so clear and transparent in fees structure, help and advice. Many Thanks"September 2017– Ritesh