Debt Recovery Pricing

Debts can arise in all walks of life, and we regularly advise and assist businesses and individuals alike. The bulk of our debt recovery instructions come from businesses across various sectors. With many years of experience and strong expertise in litigation both in and out of court, our debt recovery service is fast, efficient, and economical.

Key Stages

With every transaction there are key milestones, which may vary according to individual circumstances. Our fee will include these milestones and may be as follows:

• Taking your instructions and reviewing documentation
• Undertaking appropriate searches
• Issuing a letter before action requesting payment from the debtor
• Receiving payment and sending this on to you
• Drafting and issuing a claim form to the relevant court if the debt is not paid
• Applying to the court to enter a Judgment in Default if the debtor fails to respond to court proceedings
• Contacting the other side to request payment where a Judgment in Default has been issued by the court

Timescales

A typical debt recovery will take between 6-8 weeks, from instruction through to payment from the other side. This may be quicker or longer depending on whether we are required to issue a claim and whether the other side pay promptly on receipt of any Judgment issued by a court. As detailed above, if enforcement action is required, we will discuss the fees and timescales involved.

Qualification and experience of our staff

Our team has years of experience dealing with all aspects of debt recovery and will guide you through the process, from sending initial letters of demand to debtors, to obtaining a Court Judgment and enforcement, if necessary. Debt recovery is dealt with within our Commercial Disputes team, which is led by Alison Leith. The team consists of partners, solicitors and paralegals, with experience ranging from 1 to over 30 years.

Pricing

We appreciate that the fees involved in debt recovery are important to you. We review our fees on a regular basis, considering client’s feedback, to ensure we continue to offer a cost-effective debt recovery service.

At Tilly Bailey & Irvine, we believe in setting out exactly what we will do from the beginning and will keep you regularly informed. We can help you minimise the cost and disruption of chasing a debt, by providing immediate help for clients on a fixed fee basis*.

We charge a one-off administration fee of £25 plus VAT (at 20%)

To complete the necessary formalities involved in opening a file for you, including ID checks, and providing terms of business. 

Compliance with Pre-Action Protocol £175*

Initially we will review your documentation, any previous correspondence and / or invoices, calculate interest and advise in order to ensure compliance with the relevant Pre-Action Protocol. Pre-Action Protocols are rules set by the Court which you are obliged to follow before issuing a claim at Court.

Letter Before Action - £30*

We will draft an initial Letter Before Action to a Debtor to advise that if a response or the outstanding sum is not received in accordance with the relevant Pre-Action Protocol, then proceedings will be issued for recovery of the debt.

Repayment Agreements

We can also negotiate with the debtor on your behalf in order to attempt to achieve settlement. Our fees for this will be charged on an hourly rate and discussed with you on an individual basis.

Insolvency

If the outstanding debt is for £5,000 or more, we can advise as to whether it is possible to serve a Statutory Demand on the debtor and the merits of issuing a Bankruptcy Petition where the debtor is an individual. If the debtor is a company and the debt exceeds £750, we can advise you whether a Winding Up Petition is appropriate. 

Issuing Proceedings

We will draft proceedings on your behalf to commence a claim for recovery of the debt, subject to no dispute having been raised following pre-action correspondence.

We can obtain Judgment in default if the proceedings are undefended, or no response is received. This can often result in payment of the debt being obtained. Should the claim be disputed by the debtor, then we can assist and provide advice going forward. Additional fees will be charged at our usual hourly rates. Estimates will be provided on an individual basis.

Debt Recovery - Issuing Proceedings

Debt Recovery - Enforcement

Debt Recovery - Insolvency

Exclusions

Our fees include items detailed above, however there may be factors which would typically increase the cost of the fees. Where there is likely to be any additional cost, we will make sure you are informed of this at the earliest opportunity and a clear estimate of those extra costs will be provided.

*All of the above fixed fees are exclusive of disbursements (such as court fees) and VAT. Whether we can act on a fixed fee basis is also subject to the complexity of the matter, including whether a hearing is required, and the level of correspondence with you and any opponent. In some circumstances, we will be unable to act on a fixed fee basis. If this is the case, we shall inform you and discuss our fees with you.

Factors that may lead to an increase in cost include:

• Enforcement proceedings
• Instructing a Bailiff