As a business, it is essential for you to receive prompt payment for all goods, services and work carried out. Unpaid debts can affect cash flow and could potentially have long-lasting repercussions.
Whether a single amount or a schedule of outstanding debts, our team of experts are here to help. We understand that every case is different, and our team will take the time to fully understand your situation before advising on the necessary steps to recover the money owed.
What is the debt recovery process?
The debt recovery process varies depending on the situation, but in general will be the following:
- Sending a letter of claim to your debtor (pre-action letter)– This letter will be sent from us on your behalf. It will inform the debtor of the amount they owe, when to make payment by and the consequences of non-payment.
- Issuing Court proceedings– If there is no response to the letter, we will issue Court proceedings against them.
- Obtaining a County Court Judgment- If the Court proceedings are undefended we will obtain a default Judgment on your behalf
How much will the process cost?
We offer a fixed fee service which is a low cost and efficient way to recover debts of up to £10,000.
Prices are as follows
Sending a pre-action letter- For a debt worth:
- Up to £1,000: £75 + VAT
- £1,001 – £5,000: £100 + VAT
- £5,001 – £10,000: £120 + VAT
If our pre-action letter provokes a response from the debtor and we enter into negotiations or correspondence on your behalf, our fixed hourly charging rate of £210 plus VAT will apply. This rate will also apply to any defended Court proceedings.
To issue Court proceedings- £170 + VAT + applicable Court fee
To enter default Judgment- £50 + VAT
If Court proceedings are not defended, we will obtain a default Judgment on your behalf for just £295 to £340 plus VAT plus the Court fee. The Court fee is based on a sliding scale depending on the value of your debt. It can range from £35 for a debt of up to £300 and £455 for a debt of £10,000.
The Court fee and a contribution towards your legal fees are recoverable from the debtor.
As an alternative to obtaining a County Court Judgment, if it is clear that the debt is undisputed, it is possible to serve a Statutory Demand on the debtor. This is the pre-cursor to bankruptcy (for an individual) or winding-up (for a company) and is a very powerful threat which often results in payment being received. We are able to offer a fixed fee for preparation of a Statutory Demand of £300 plus VAT & there is a process server’s fee for service of it of approximately £120 to £180 plus VAT. If the debtor does not pay we will discuss with you the possibility of bankruptcy or winding up and the costs involved.
What if the debtor does not pay?
If we obtain a Judgment on your behalf but the debtor still does not pay, we can advise you on your enforcement options and the costs involved.
Enforcement options can include:-
- Attachment of earnings- the money will be deducted from the debtor’s wages directly.
- Charging Order against property
- Instructing the High Court Enforcement Officer – this is often an effective way of enforcing the Judgment debt as the majority of debtors pay in order to avoid having their possessions removed and sold.
Debt Collection Testimonials
What a result! Thank you to Linda Marshall for all her hard work in pursuing and achieving such a brilliant outcome.
Roslyn Leeds was excellent and empathetic. It was an absolute pleasure dealing with Roslyn again after so many years.
C. Aldridge, Wymondham
Thank you again Linda Marshall. Linda proved to be an excellent listener. She took on board all the points I made and planned a course of action accordingly.
Mr McConnell, Wymondham