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.
Due to the impacts of Coronavirus and government guidance, our Fixed Fee Meetings will occur as telephone meetings.
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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
We used Barrett & Co re conveyancing for the purchase of our new home. Richard Ince and his team, Rebecca P and Emma D were brilliant from start to finish. They were patient and clear in their explanations throughout, and ensured that all our queries were addressed, large or small........ A professional and friendly service - Thank you!
We used Barrett & Co conveyancing services to buy our first house and they made the process really easy for us, and we completed within the period of time we were hoping for from the start. Piers and Emma were very nice and helpful, and we thoroughly recommend them.
Outstanding! I was seeking advice prior to an employment Tribunal. The advice was holistic, objective and delivered with pure integrity. The 1-hour consultation gave me the confidence to proceed and do it with pride. I went into the Tribunal alone and was against an employer who arrived in force- I was outnumbered 4:1- and won! Not only was the advice immaculate and precisely on point , the humble and "real" element to our interaction was warming and very supportive. Thank you!
As a client of Barrett and Co LLP for many years, I recently had the pleasure of liaising with a Barrett and Co legal executive, Ms Juliette Spanner, with whom I had not previously encountered face to face, or even by telephone. I have in recent years lost my wife, and this was the first time I was dealing with a legal matter that I would normally have discussed with my wife of many years. During our first conversation by phone, I quickly realised that I had no need to 'go it alone' as Juliette immediately grasped my requirements and personal circumstances, and imbued me with complete confidence in the eventual outcome. From the outset, her subsequent written communication with me was of the highest order, timely and responsive to any queries I brought up, whilst her personal standard of verbal communication by telephone in the present Covid circumstances was exemplary. I was, as I have come to expect over the years in my dealings with Barrett and Co, totally satisfied with every aspect of my business dealings with Juliette. I have every confidence that the level of interest, professional standards and patience she demonstrated will continue to enhance the reputation of Barrett and Co. in her dealings with future clients. I unreservedly recommend both the firm and Juliette as a very reassuring and professionally competent duo. I commend them both, and wish them well in the uncertain times in which we live.
Justin Sadler did an outstanding job, providing excellent support and advice. Very professional and willing to guide you. He always replied to my emails and phone calls immediately. An amazing solicitor - definitely recommend him!
Barrett & Co came highly recommended through professional contacts. All the Barrett's staff we dealt with were polite and efficient. Chris Miller, who acted on our behalf, was polite, and professional, and his advice was sensible. We would recommend Barrett & Co.
Justin is a very nice man, he is very interested in what you have to say. Helpful and always responsive to any questions and will reply back was very happy with all he has helped me with Roger Buller
Extremely satisfied with the service. A protracted and complex case made bearable by the very professional and caring approach. The firm also took great care to avoid costs spiraling out of control. I would recommend Barrett & Co to anyone who asked.