SCENARIA 1 – Fixed fee
The cost estimate is provided in respect of a debt recovery claim up to the value of £100,000.00. It is provided on the following provisions:-
The claim is in relation to an unpaid invoice, for which no dispute or query has been raised.
Enforcement action will not be required.
It should be noted that if the debtor disputes the claim at any point, we will then discuss the further work required and provide you with a revised cost estimate, to include further work. It may be possible to offer a further fixed fee, but this will be dependent on whether that would be deemed appropriate given the circumstances.
STAGE 1 – PRE-ACTION
A fixed fee of £450.00 plus VAT (£80) totalling £480.00 which will cover the following:-
Taking our instructions, reviewing documentation and providing you with advice.
Undertaking the appropriate searches.
Preparation and sending a Letter Before Action.
Upon receiving any payment from the debtor, forwarding it to you.
In the event the debtor fails to reply, advising you on the way ahead.
STAGE 2 – LEGAL ACTION
If legal action is taking an additional fixed fee of £500 plus VAT (£100) totalling £600 will be incurred and will include the following:-
Preparation, drafting and arranging for the issuing and serving of the Claim Form and Particulars of Claim.
Reporting to you the date of issue, service and date by when the debtor is to reply.
In the event that the debtor does not reply, applying to the Court for Judgment in Default.
Sending the debtor the Judgment Order demanding payment.
If no payment is received, providing you with advice on the next step likely costs.
The above fixed fees do not include any disbursements, including the Court issue fee which can be viewed at https://www.gov.uk/make-court-claim-for-money/court-fees and/or Land Registry Searches.
You should also note that any amount claimed of £10,000 or less, legal fees are not normally recoverable, except for Court fees.
The above fixed fees are based on a straightforward and uncontested debt recovery matter. Where a matter becomes contested we will at that stage and upon review of the documentation provide a revised costs estimate.
Stokes Solicitors LLP will endeavour to send the debtor a Letter Before Action within 7 days of receipt of your instruction. Depending on the type of debtor, whether individual or corporate, the debtor can be allowed anywhere between 7-30 days to respond to the Letter Before Action. If legal proceeding are issued it is estimated that it could take an additional 4 to 6 weeks, depending on how promptly the Court processes the claim.
If you have any questions or queries on how Stokes Solicitors LLP can act for you on securing swift payment of debt please do not hesitate to contact :-
Scenaria 2 – Time Basis
The following costs estimate is provided when you instruct Stokes Solicitors LLP to take action to recover a debt up to the value of £100,000.00. The estimate is provided on the basis that the claim is in relation to an unpaid invoice, which is not disputed and enforcement action will not be required. If the debtor disputes the claim at any point, we can at that stage discuss the further work required and provide you with an up to date cost estimate, which could, if appropriate, be for a further fixed fee. Alternatively an hourly rate would apply if more extensive work is necessary.
STAGE 1 – PRE-ACTION
At this stage we will discuss with you the details of your claim and review the documentation allowing us to advise you on the best course of action.
A Letter Before Action will be sent to the debtor, setting out your claim, demanding payment and explain the consequences of not paying, which could include legal action being issued.
If the debtor responds we will forward that payment to you. In the event that the debtor alleges a dispute, or fails to respond we will at that stage advise you of the options available.
The usual costs which would be incurred at this stage, applying the hourly rate of £190 plus VAT would be between £475 and £665 plus VAT.
STAGE 2 – LEGAL ACTION
If the debtor fails to resolve the claim to your satisfaction and you instruct Stokes Solicitors LLP to issue legal action, meaning a claim issued in the County Court, the costs which would be incurred in addition to those detailed at Stage 1 could be between £570 and £760 plus VAT.
The costs include:
The preparation and drafting of the Claim Form and Particulars of Claim, arranging for it to be issued and served
Providing you with an update of issue, service on the defendant and advising you on the date by when the defendant must respond.
In the event that the defendant does not respond, either by entering a defence or admitting the claim, applying to the Court for Judgment by Default.
In the event that the defendant does enter a defence advising you on the way forward.
Where the claim issued is defended/undisputed, Stokes Solicitors LLP will provide you with a costs estimate for the work that would be incurred for continuing to act for you thereafter.
Where a County Court Judgment is entered and the debtor does not pay, enforcement proceedings can be taken. We can discuss your options at this stage as there are several different enforcement methods and the costs which Stokes Solicitors LLP would incur will vary depending on the method of enforcement taken.
The hourly rate which would apply normally at this stage is £190.00 plus VAT.
You should note that the above figures do not include disbursements such as the Court issue fee and Enforcements fees which can be viewed at https://www.gov.uk/make-court-claim-for-money/, Land Registry search fees and Barrister’s fees, if appropriate.
If you have any questions or queries on how Stokes Solicitors LLP can act for you please do not hestitate to contact :-