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Business debt fees

Range of fixed fees for a business to business debt that is an undisputed Court Claims

Court Claims

We recognise the importance of effective debt recovery to our clients. At Phillips we provide a professional and cost effective service in order to recover your outstanding debts and have outlined our fees for undisputed business debts:

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.

No Proceedings Issued

 

 

Debt Value

  

Our Fee (excluding VAT)

  Total (including VAT)
 

Up to £5,000

  £250  £300
 

£5,001 – £10,000

  £350  £420
 

£10,001 – £50,000

  £550  £660

 

Proceedings Issued 

 Debt Value  Court Fee  Our Fee (excluding VAT)  Total (including VAT)
 Up to £5,000  £205  £450  £745
 £5,001 – £10,000 £455 £650  £1,235
£10,001 – £50,000  5% value of the claim  £1,000  

For example a £10,001 claim would be £1,500.05

 

 

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 not for matters where enforcement action, such as the bailiff, is needed to collect your debt.

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 Acknowledgement of Service or Defence is received, applying to the court to enter Judgement in default.
  • When Judgement in default is received, write to the other side to request payment.
  • If payment is not received within 28 days, providing you with advice on next steps and likely costs.

If at any stage our fees change, we will notify you and discuss the reason for any changes. This would typically occur if you change your instructions or your case involves an unforeseen complexity.

Our average fees assume that:

  1. The transaction is concluded in a timely manner and no unforeseen complication arise.
  2. All parties to the transaction are co-operative and there is no unreasonable delay from any parties providing documentation.

 

Disbursements and Other Costs

  • Disbursements may be incurred in the handling of the matter for you. In Debt Claims, fees tend to relate to Counsels’ fees and Court Fees.
  • Counsels fees – If Counsel is required to be instructed a quotation for their services will be obtained from them and discussed with you before they are instructed to ensure you are fully aware of the fees that will be charged.

How long will my claim take?

The time that it takes from taking your initial instructions to the final resolution of your matter depends largely on the stage at which your case is resolved.

If a settlement is reached without the need for issuing of court proceedings, your case is likely to take 4-8 weeks.

If it is necessary to issue court proceedings and your claim proceeds to a Final Hearing, your case is likely to take 16-32 weeks.

This is just an estimate and we will of course be able to give you a more accurate timescale once we have more information and as the matter progresses.

Factors That Could Make A Case More Complex

The following factors may make your case more complex and impact on your legal fees and disbursements: –

  • The matter is defended
  • Judgement is obtained and needs to be enforced for example
    • Instruction of a Bailiff
    • Attachment to earnings
  • Making or defending a costs application

Should any of these factors occur we will notify you and discuss with you any increase in our legal fees or disbursements.

Fee Earners

Max Hope is a Director at Phillips Law, a qualified Solicitor and has overall supervision of the Debt recovery team. Max qualified in 2004 and before joining Phillips Law in 2018, gained 10 years of private practice experience working with top-tier international law firms (Linklaters, CMS, and Clyde & Co). He specialises in acting for companies and individuals in non-contentious corporate and commercial matters, and in commercial and insurance disputes.

Simon Arneaud is an Associate Solicitor at Phillips Law and specialises in commercial and corporate disputes, property litigation, contentious wills and probate matters and urgent injunctive applications. Having practised as a litigator since qualifying as a solicitor in 2011, Simon has successfully represented a large number of clients, enabling them to achieve the results they are invested in achieving.

You can find out more about our Debt Recovery team here: Meet the team

Questions

If you have any questions relating to our services and our fees, please contact us on 01256 460830 or email us at [email protected]