Debt Recovery Pricing

OUR CHARGES

Stage 1. Pre Legal Debt Recovery

Starting the debt recovery process normally involves the sending of a LBA ‘letter before action’ to the debtor.  If the debtor is an individual, you will be required to send the Pre-Action Protocol letter whereby you will be required to wait at least 30 days before any legal claim can be issued.  This requirement is not necessary if writing to a business or company.

You can instruct John Barkers to send an LBA only and in this regard our charges are £20 plus VAT.  This charge is reduced to £10 plus VAT per letter if you instruct us on 20 matters or more.

The following section governs the charges we make on matters before issuing legal proceedings.  All work described below is plus VAT.

Option 1 Fee for each file referred
Work includes

Review of client file, risk assessment, file set up & sending of letter of demand and dealing with first response thereto, asset investigation and providing advice on merits of claim.

To include preparing and sending pre action protocol letter before action (LBA), Receiving and considering any reply from debtor/his legal advisor and providing you advice on how to proceed.

£250
Option 2 Discounted fee based on 20 referrals and above
Work includes

Review of client file, risk assessment, file set up & sending of letter of demand and dealing with first response thereto, asset investigation and providing advice on merits of claim.

To include preparing and sending pre action protocol letter before action (LBA), Receiving and considering any reply from debtor/his legal advisor and providing you advice on how to proceed.

£175

In addition to the above charge, we will invoice you 10% of the debt recovered on your behalf.

 

Insolvency

This section governs our charges for undefended bankruptcy proceedings on debts in excess of £5000.  If the claim becomes defended, an hourly rate will be charged at Grade A rate of £201 plus VAT  per hour. More details on charges for insolvency proceedings can be provided upon request.

  Our fees Court fee Other fees Total
Drafting Statutory Demand £100 £100
Service of Statutory Demand Process server usually between £150 £200
Drafting Petition £500 £500
Issuing Petition £990

 

£280 £990

 

£1270
Service of Petition Process server usually between £150 £200

Other disbursements include;

Agents fee for attending the bankruptcy hearing (depends on location) but usually£85 plus VAT

Insolvency search                                                                                                                                                    £20 plus VAT

Proceeding with a statutory demand is usually only done if the debt is undisputed or a Judgment has already been granted by the Court.  Service of the demand usually takes place between 2-3 weeks of the demand being given to a process server for serving.  Once served the debtor has 21 days to pay the debt or 18 days to apply to the Court to set aside the demand.

A bankruptcy Order is usually obtained within 6-12 weeks of a petition being issued.

 

Stage 2. Legal/contentious Debt Recovery

This section governs the charges we make for matters whereby legal proceedings have been issued including any work done in preparation of any such proceedings..  Any work described below is;

  • subject to payment of all disbursements
  • subject to the addition of VAT

 

Issue fees– to issue a claim for money, the following fees will be payable on the amount claimed

Value of claim Court fee payable (£) Our fees (£)
Up to £300 35 100
£300.01 – £500 50 100
£500.01 – £1,000 70 100
£1,000.01 – £1,500 80 150
£1,500.01 – £3,000 115 150
£3,000.01 – £5,000 205 150
£5,000.01 – £10,000 455 200
£10,000.01 – £25,000 5% of the claim 250
£25,000.01 – £50,000 5% of the claim 350
£50,000.01 – £100,000 5% of the claim 500
£100,000.01 – £200,000 5% of the claim 550
Over £200,000.01 10,000

 

 

Principal claim amount/value £0-£10,000

(small claims)

£10,000+

(fast & multi track)

Drafting and issuing a claim form See above See above
Receiving and considering any defence, dealing with any transfer of the case, advising on Defence and drafting a reply and/or defence to counterclaim.  Filing directions questionnaire.  To include all necessary correspondence and telephone calls £325 Hourly rate

A

Preparing and conducting mediation, negotiating payment/settlement, drafting and agreeing any compromise/settlement agreement.  To include all necessary correspondence and telephone calls £200 Hourly rate

A

Preparing and attending any preliminary hearing as required (if any) £100 Hourly rate

A

Preparing evidence for trial, preparing trial bundles, witness statements, expert reports and other required evidence, including filing evidence at Court and serving Defendant.  To include and advising on settlement negotiations and all necessary correspondence and telephone calls (NB a separate payment will be required for any experts report) £300 Hourly rate

A

Preparation for trial, case summaries, cost schedules, instructing Counsel (barrister), liaising with witnesses and advising of outcome. To include and advising you on all settlement negotiations and to include all necessary correspondence and telephone calls £475 Hourly rate

A

 

In addition to the above charge, we will invoice you 10% of the debt recovered on your behalf.

 

Assumptions for small claims

  • Not to last more than 3 hours.
  • No expert evidence is required (other than report).
  • There be no more than 2 witnesses.
  • In the event that the Court allocates your claim to a different Track, then the above charges will only relate up until the stage the matter was allocated to a different Track and the matter will then be dealt with on an ‘Hourly Rate Basis’.
  • The matters are considered relatively straightforward (no complex issues) in this event the matter will be brought to your attention before any work is done as grade A will be charged on an hourly basis.

Hearing fee– this fee is payable on the filing of the pre-trial check list or within 14 days of the notice of trial date, or the date you are told of the trial date

Value of claim Fee payable (£)
 

Small claims

Up to £300 25
£300.01 – £500 55
£500.01 – £1,000 80
£1,000.01 – £1,500 115
£1,500.01 – £3,000 170
More than £3,000 335
Fast track 545
Multi track 1090

PLEASE NOTE: if you do not pay a fee when required by the court, the court can make an order which may lead to your claim being struck out.

 

Once the Court has issued and served your claim, the Defendant will have 14 days from service to file a defence, acknowledge the claim or they may do nothing.   In the event that the debt is not disputed then you are able to apply for a Judgment in default.  Judgment is usually granted within 14 days from the request being received if it is sent by mail to the Court

 

The sum detailed below is the sum charged by us when entering Judgment on your behalf

  Judgment value exceeds £25 but does not exceed £5,000 Judgment value exceeds £5,000
Where judgment in default of an acknowledgment of service is entered under rule 12.4(1) (entry of judgment by request on claim for money only) £30 £50
Where judgment in default of a defence is entered under rule 12.4(1) (entry of judgment by request on claim for money only) £30 £50
Where judgment is entered under rule 14.4 (judgment on admission), or rule 14.5 (judgment on admission of part of claim) and claimant accepts the defendant’s proposal as to the manner of payment £40 £60
Where judgment is entered under rule 14.4 (judgment on admission), or rule 14.5 (judgment on admission of part of claim) and court decides the date or time of payment £60 £80
Where summary judgment is given under Part 24 or the court strikes out a defence under rule 3.4(2)(a), in either case, on application by a party Hourly rate

(£175 is recoverable from Defendant)

Hourly rate

(£210 is recoverable from Defendant)

 

Miscellaneous fees– including general applications

Applications issued;

On notice where no other fee is specified 255
To set aside a County Court Judgment 255
By consent and where no other fee is specified 100
To vary a Judgment, suspend enforcement or a warrant of possession 50
For a summons or order requiring a witness to attend court 50
For a certificate of satisfaction of a Judgment debt 15
For an adjournment (by consent) if made at least 14 days prior to a hearing No fee
For an adjournment (by consent) if made less than 14 days prior to a hearing 100
For an adjournment (without consent) if made less than 14 days prior to a hearing 255

 

 

Late payment of commercial debts

If you are owed a debt in relation to a commercial transaction you are entitled to interest (8.5%) and compensation as follows;

Value of claim Compensation entitlement
Less than £1,000 £40
£1,000 – £9,999.99 £70
£10,000 or more £100

 

Stage 3. Enforcement & Recovery

Once a Judgment has been obtained and if the debtor does not pay the sum ordered to be paid, you may choose to enforce the Judgment by using a variety of methods.  Our charges are detailed below.  Fixed costs allowable by the Court, which are recoverable from the debtor, are listed for your information.  Our fee is the amount charged to you if instructed to carry out any enforcement on your behalf.

 

Description Court fee Fixed Costs Our fee
Writ of Control (fifa) & Writ of Execution (High Court) £66

£90 for HCEO if warrant unsuccessful)

£51.75 75
Warrant of Execution (control) £110 £2.25 75
Attachment of Earnings £110 discretionary 100
Information Order £110 £100 200
Third Party Debt Order £110 £100 250
Application to re-issue Warrant/fi fa £0 £50 100

PLEASE NOTE: the above fees and costs are fixed by parliament and can be changed at any time and during the term of your claim.  You are liable for any increase in court fee in this regard.

 

Writ of Control (fifa) & Writ of Execution (High Court) – This is a process which can be productive if you are aware of any assets of the debtor.  The High Court Enforcement Officer (HCEO) will attempt to seize asset to the value of your claim and costs incurred by the HCEO.  The HCEO may agree a repayment programme if the debtor has insufficient assets to pay the debt.  Typically this type of enforcement can take between 6-12 weeks from receiving instructions fro you.

 

Warrant of Execution– This process and timescale is the same as a Writ of control but carried out by a County Court Bailiff.

 

Attachment of Earnings– This is a process whereby the Court can order an employer of the debtor to make deductions out of the debtor’s salary at source.  The process can take between 4-10 weeks depending on whether the debtor co-operates with the Court in providing information requested or whether the debtor changes his employment during the process of the application.

 

Information Order– This is a process whereby a debtor is ordered to attend court for questioning on his assets and liabilities and ability to pay the debt.  The debtor may evade service of the documentation which means that a process server may be required to effect service.  This will incur a further fee for service.

 

Third Party Debt Order– If you are aware that the debtor is owed money by another you can ask the Court to Order that the payment comes to you instead of your creditor.  Typically this process takes between 2 – 6 weeks upon issue.

 

Charging order– You can ask the Court to place a charge upon a property owned by the debtor which property could also include a pension or stocks and shares.  Te application is made without notice and if the Court is satisfied the property is to be charged, the Court will grant and interim order which is then registered against the property.  The fees charged are as follows

 

Description Court Fee Fixed costs Our fee
Issue Fee £110
Office Copies & Plan £6
Registration fee at HMLR £20 20
Fixed costs £110 250

 

Order for Sale  – This process is the enforcement of the Charging Order obtained. If a debtor does not pay the debt, you can apply to the Court for an Order that the property charged is sold to pay the debt.  An initial investigation fee of £375 plus VAT is charged or if we receive bulk instructions, this is limited to £250 plus VAT.  Once you decide to pursue this application our fee is charged at the hourly rate of £201 plus VAT.  We always seek to obtain an order that the debtor pays all of the costs incurred which are payable out of the proceeds of sany sale.  The disbursements incurred in pursuing this claim which will include VAT are as follows

 

Description Disbursements
Issue Fee £308
Office Copies & Plan £6
Registration fee at HMLR £20
Drive by valuation £35
Agents fee for attending the hearing £135
Warrant of Possession 121