A comprehensive debt collection service including:
> Letters before action.
> Issue of County Court Summons.
> Enforcement proceedings.
> Statutory demands.
> Bankruptcy / winding up proceedings.
> All debt collection work carried out by our dedicated debt collection
team led by Janette Jenkins.
The amount of our charges will depend upon the outcome achieved in the case.
If we arrange for Court proceedings to be issued and if the Claim is not contested we will automatically enter Judgement and thereafter discuss with you the best method of enforcing that Judgement. If we are successful in recovering all or part of the debt by the enforcement action our charges will be the amount of the legal charges included within the Judgement together with any late payment compensation recovered, (plus VAT which you will have to pay). For debts of less than £1,000 the compensation is £40.00, for debts between £1,001 and £10,000 the compensation is £70.00 and anything over £10,001 the compensation is £100.00.
If we are unsuccessful in recovering payment our charges will be in the region of £100.00 plus VAT.
In addition to our charges you will be responsible for all Court fees for the issue of the Summons and the subsequent enforcement action as follows:-
|Value of Claim||Court Fee|
|Greater than||£300.00||But no more than||£500.00||£50.00|
|Greater than||£500.00||But no more than||£1,000||£70.00|
|Greater than||£1,000||But no more than||£1,500||£80.00|
|Greater than||£1,500||But no more than||£3,000||£115.00|
|Greater than||£3,000||But no more than||£5,000||£205.00|
|Greater than||£5,000||But no more than||£10,000||£455.00|
|Greater than||£10,000||£200,000||5% of Value of Claim|
|Issue Warrant of Control – Bailiff||£110.00|
|Issuing Writ of Control – Debt over £600.00 – High Court Enforcement||£ 66.00|
|Attachment of Earnings||£110.00|
|Charging Order upon Property||£110.00|
If payment is received in response to the letter before action our charge will be approximately £40.00 plus VAT of £8.00 or the costs which we have included in our letter to the Debtor.
If the Summons is contested we will need to discuss with you the basis for the Defence and at the same time we will give you our best estimate of the legal charges which will be incurred in dealing with the contested Court case. These costs will be charged at the hourly rate of one of our qualified Solicitors of £201.00 per hour plus VAT of £40.20. We will however keep you up-dated in relation to costs as the matter proceeds.
If a debt is recovered in full after the issue of proceedings the client will recover the full amount of the debt plus interest at no cost to the client.
This service is extremely popular and successful. Clients are surprised at how cost effective it can be.
You may in the alternative wish to consider taking insolvency proceedings whereby you would make an individual Bankrupt or to wind up a Limited Company. Insolvency action can be taken against individuals where the debt due to you is more for than £5,000 and against Companies where the debt is for more than £750.00.
- The first step would be to issue a Statutory Demand which gives the Company/Individual 21 days to respond, failing which you can present a Winding Up/Bankruptcy Petition.
- If the customer takes no action for the 21 day period you would be entitled to present a Winding Up/Bankruptcy Petition. This is expensive because in relation to the winding up of a Company there will be an Official Receiver’s deposit of £1,600.00 payable together with a Court fee of £280.00.00 as well as our fees for preparing the Petition. In relation to Bankruptcy the Official Receiver’s deposit is £990.00 together with a Court fee of £280.00.
- Our costs for preparing the Statutory Demand would be in the region of £100-£150.00 plus VAT of £20.00-£30.00 and if we need to arrange for the issue of a Winding Up Petition our further charges will be approximately £150.00 plus VAT of £30.00. These estimates are given on the assumption that matters proceed as one might expect and without unforeseen complication. We usually find that negotiations take place after the service of the Statutory Demand and Winding Up Petition and we will charge for this extra work at the appropriate hourly charging rate.
- The Statutory Demand and Winding Up Petition must be personally served upon the customer. We use a Process Server to deal with this and their charge will be £90.00 plus VAT of £18.00 for each document.
- There is one potential drawback to this procedure; if the customer considers that there is a dispute about the debt they would be entitled to apply to the Court within a period of 18 days after service to set aside the Statutory Demand. If the Court considers that there is a dispute the Statutory Demand will be set aside and it is likely that you will be ordered to pay the costs of the Court application. This can be a significant issue and we would not recommend the Insolvency Act procedure save in the most clear cut of circumstances.