Debt Recovery

When you are owed a sum of money from a relative or friend, the task of trying to recover the debt can be daunting and you may not know where to turn.

At Spire Solicitors LLP, our team of experts are here to help and can advise on any small claim case. We understand that every case is individual, 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- This is a legally binding document which will set out how the debt should be repaid and when it has to be paid by.

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 £190 – £295 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.

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

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