DEBT RECOVERY
We work with organisations of all sizes.
We can help you with all forms of recovery and/or enforcement actions including charging orders and insolvency action. Our services are tailored to the needs of your business in order to help you resolve any debt disputes as swiftly as possible.
Our team regularly advises on:
Pre-legal collection including lettering, telephone debt collection, and trace and collect
Legal collection, including county court proceedings, mediation services, defended legal actions, enforcement, negotiation and advocacy
Payment agreements, including instalment monitoring, chasing defaults and regular instalment assessments
Insolvency action, including bankruptcy, winding up, advice on debtor’s petitions, Individual Voluntary Agreements (IVAs), Company Voluntary Agreements (CVAs) and post insolvency trustee liaison
General debt recovery advice, including Pre-Action Protocol for Debt Claims compliance.
Should court proceedings become necessary we can provide advice and assistance in county court proceedings.
Should your debtor fail to comply with a court order in your favour, our team can provide advice and assistance in Enforcement.
This is the final step of the debt recovery process and the rules of ethical conduct must be applied at all stages. Unless the debtor agrees to sign a repayment contract following the court proceeding, there are at least a few ways you can use to recover debt, mostly depending on whether the debtor has any assets that may be seized.
Statutory Demand
Under Insolvency Act, Statutory Demand can be used as an alternative to the ‘letter before action’ approach mentioned above, but it’s more intrusive and formal than the former and has far-reaching consequences. It precedes a Bankruptcy Petition against an individual and it’s for debts over £5000 where there are no known disputes in relation to the claim.
Please note that the debtor can apply to the court to drop the Statutory Demand procedure at any time.
Third-party Debt Order
If you know about any of your debtor’s loans that are about to be repaid, you can apply to the court for the money to be paid directly to you. While this may not be the quickest way to recover the debt as the timing largely depends on the third-party debtor’s capability, but your application can be made against the debtor’s bank account to ensure that the recovery will be effective.
Attachment of Earnings
Attachment of Earning can be executed only if the debtor is employed (but not self-employed). Payments are then deducted from their salary and transferred into the creditor’s bank account to satisfy the debt.
Charging order
A charging order can be placed against the debtor’s property, so once they sell it, the appropriate payment will be made to the judgement creditor. Once the order is granted by the court, you can apply for it to be executed through the Land Registry.
Enforcement agents
This is by far the most invasive debt collection method, and it can be applied for debts up to £5000 where an assigned county court bailiff can enter the debtor’s property and seize any belongings that would satisfy the debt. For debts over £600, this procedure will be completed by a high court enforcement officer. It’s important to remember that contrary to business properties, the entry cannot be done by force on residential properties, and you need to gain a peaceful admittance in order to seize any items.
We aim to achieve quick settlements without the need for formal legal action. Court proceedings are issued only when out of court settlement is not possible.
We build long standing relationships with our clients, becoming a vital part of their team and work closely with them to achieve the best possible outcomes.
Time Scales
Matters usually take 3 – 18 months from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim, and the Court’s timetable. This is on the basis that the other side pays promptly on receipt of Judgement in default. If enforcement action is needed, the matter will take longer to resolve.
Key Milestones
These are the typical steps we’ll take although individual circumstances differ.
- Take your instructions and review documentation
- Carry out appropriate searches
- Before action, issue a letter to request payment from the debtor
- Take payment and forward on to you
- Draft and issue a claim form to the relevant court for an unpaid debt
- Apply to the court to enter a Judgment in Default if the debtor fails to respond to court proceedings
- Request payment from the debtor where a Judgment in Default has been issued by the court
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.
If you think you may have a claim, or you are involved in a dispute, then why not consult one of our specialists to find out your prospects and obtain advice on the best possible course of action.
OUR HOURLY RATES
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:
- a) The transaction is concluded in a timely manner and no unforeseen complication arise.
- b) 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.
Counsel 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. However, we have given examples of costs below:
The fees of a barrister vary depending on the experience of the advocate and their expertise. In our experience, the initial fee for a barrister and the first day of the hearing (known as the brief fee) will be in the region of £1,000 – £3,000 plus VAT (£1200 – £3600 Inc. VAT). Each subsequent day would be an additional £500 – £1,500 plus VAT (£600 – £1800 Inc. VAT).
If you want a very experienced barrister, then the cost is likely to be more. You may also incur additional charges such as travel costs for us to attend meetings and hearings.
Courts Fees – The following link sets out the current court fees
https://www.gov.uk/make-court-claim-for-money/court-fees.
These are only necessary where we are required to issue a claim form via the court.
Anyone wishing to proceed with a claim should note that:
- 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 Acknowledgment 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.
The value and complexity of the matter alongside the stage at which the matter is resolved are factors that must be taken into account to confirm the fees in accordance with this scale.
If your matter is simple or low value we will discuss with you other fee options that may be available to ensure our fees are proportionate to the value of the debt.
If your matter becomes complex (see below) our fees may increase further and we will notify you in advance of any increased costs.
Additional costs
If there are likely to be additional costs, we will inform you as soon as possible. You may incur additional costs if:
- We need enforcement proceedings
- We need to instruct a Bailiff
Should your instructions require us to take your matter out of the fixed fee rate we will charge an hourly rate of £240.00.