Debt Recovery Pricing

Debt recovery litigation

How much does debt recovery litigation cost?

No two litigation cases are the same. Each case is particular to its circumstances and the people and businesses involved, and estimating the cost is only really possible given an opportunity to look at the facts and evidence.

Total fees can range from less than £5,000 for a straightforward matter or where no defence is filed, through to £100,000 and more in complex cases.

We normally charge an hourly rate for debt recovery work, ranging from £135 to £300 per hour plus VAT, depending on the experience, qualifications, and specialist skills of the lawyer handling the matter. We will discuss and agree with you which of our lawyers would be most appropriate to handle your case.

Our fees will be higher, and there are likely to be additional costs if the matter goes to court.

You will normally be liable to pay all fees and disbursement charges relating to your case. Subject to certain conditions, a court may award you the right to seek recovery of some costs from your opponent if your case is successful.

What’s involved?

For debt recovery matters valued at up to £100,000 the initial work would typically include:

• Meeting you, discussing your case, and taking your instructions.
• Reviewing documents and other evidence.
• Drafting a Letter of Claim.

Drafting the letter of claim in compliance with court rules can take anything from five hours for a straightforward case with simple paperwork, through to 20 hours for a more complex case.

This initial work in a relatively simple matter, requiring around 10-15 hours’ work and charged at an approximate average hourly rate, would cost between £1700 and £2550 plus VAT.

Possible additional costs

If the matter is not resolved at the above stage it may be necessary to bring proceedings in court, which will take more time and attract further costs.

We will charge additional fees for assisting in preparing the claim for court. Other charges, known as disbursements, may become payable for services provided by third parties.

You would be required to pay a court fee to issue your claim, which is charged at 5% of the total sum claimed up to a maximum of £10,000. There may be further court fees as the case progresses, and we will tell you about these in advance. Court fees do not attract VAT.

You may decide to instruct Counsel (a barrister) to present your case in court, which we will discuss with you beforehand. Counsel’s fee will be agreed with you in advance and will depend on the barrister’s experience and specialisms. VAT is payable on barristers’ fees.

Our instructions to Counsel and assisting in preparing the claim for the court will involve additional work varying from 5 – 15 hours, for which our fees will range from £850 to £2550 plus VAT, again depending on the complexity of the case.

In some cases, it may be necessary to instruct an external expert such as a tracing agent or service agent to assist in your claim. The expert will charge a fee plus VAT. We will discuss this with you beforehand.