Our Debt Collection service usually begins with a letter before action being sent to the debtor.
We would always recommend that you try communicating with the debtor yourself first, but we find that most clients have already sent several reminders to the debtor before they consider instructing us.
Some clients consider instructing a Debt Collection Firm rather than a solicitor. They can often appear to be cheaper initially and they typically like to threaten insolvency or bankruptcy by sending a statutory demand and delivering it in person via a process server. This can appear to be intimidating for the debtor, but in our experience, it 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. We have acted for debtors in several cases where they have been threatened with bankruptcy or insolvency by creditors and have successfully had the case thrown out and recovered several thousand pounds in legal fees against the creditor. Also, if your debtor does become insolvent or bankrupt at any stage of the process then you are unlikely to recover anything anyway.
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 £60 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 £60 + 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 they 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 with the letter before action.
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, including Bailiffs, Charging orders, Third Party Debt Orders, Attachment of Earnings, request for Further Information and Bankruptcy.
To learn more about all these various options, please visit our Enforcing Court Judgments page.
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||£275-£825|
|£300.01 to £500||Small Claim||£50||£35||£95||£275-£825|
|£500.01 to £1,000||Small Claim||£70||£60||£95||£275-£825|
|£1,000.01 to £1,500||Small Claim||£80||£70||£95||£275-£825|
|£1,500.01 to £3,000||Small Claim||£115||£105||£95||£275-£825|
|£3,000.01 to £5,000||Small Claim||£205||£185||£95||£275-£825|
|£5,000.01 to £10,000||Small Claim||£455||£410||£95||£275-£825|
|£10,000.01 to £25,000||Fast Track||5% of the claim||4.5% of the claim||£95||£550-£3,300|
|£25,001-£100,000||Multi Track||5% of the claim||4.5% of the claim||£95||£1100- £11,000|
|£100,000.01- £200,000||Multi Track||5% of the claim||Unable to issue online||£95||£1100- £11,000|
|More than £200,000||Multi Track||£10,000||Unable to issue online||£95||£1100- £11,000|
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.
Due to the impacts of Coronavirus and government guidance, our Fixed Fee Meetings will occur as telephone meetings.
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
When informed by your employer that your employment contract is to be terminated because of a restructuring and not through any fault of one’s own – and probably not knowing what to do or who to turn to - it’s a lonely, disorientating, and unsettling place to be - as anyone in a similar position reading this will fully understand. When this happened to me, I didn’t know who to turn to. But a colleague recommended Barrett and Co, and so I checked out the website and was impressed with what I read about Justin Sadler and his experience. Justin and his assistant were quick to respond to my inquiry, and a consultation call was set up which was extremely useful. Justin quickly grasped my situation and was able to provide me with sensible and pragmatic legal advice as well as a tactical approach on how to proceed, and very importantly - advice on how to best channel my feelings. I had a legal stalwart in my corner. In short, we achieved as good an outcome as was possible in the circumstances and I am very grateful to Justin for all his help and advice. If you need employment related legal advice - look no further than contacting Justin Sadler at Barrett and Co.
4th October 2021
In the run up to completion, Emma and her colleagues were taking very good care of us. Despite many challenges throughout the day, including a tricky chain + backlog in banking transactions, Emma was always on hand with a friendly word and answering our queries quickly and professionally etc.
1st October 2021
I have recently used Barrett and Co Solicitors for a multiple legal issues needing to be resolved and also creating a will. I found them to be very good and professional, the majority of the work being carried out by Juliette Spanner who has very knowledgeable, professional and courteous. From my experience I will be using them in the future again.
8th August 2021
There are so many positive things I would like to say about Barret & Co. For me to do that would take too long. I will say, however, that Barrett & Co provided a first class service that resulted in a very positive & successful outcome . The service we received was akin to the service you would expect from a large city solicitor. If you are looking for a professional efficient multi discipline solicitor ,then I strongly recommend that you look no further. Thank you Barrett & Co ,with a special thank you to Jane Whitfield, for all that you have done for us & for taking away all the worry.
4th August 2021
It is our first time to purchase a property in UK and we are not clear about the details and trick in the conveyancing process. We are lucky to have Piers and his team, Emma and Fatima to handle our case. Like everyone who want to complete the deal before the stamp duty holiday, we keep pushing the schedule. They are very responsive and patient to our enquiry. Instead of just "close the deal", they provide very professional advice to those critical issues on the tile. While protecting our interest in the legal point of view, they facilitate the process to meet the target schedule too. Piers' team did a amazing job. Highly recommend.
27th June 2021