We will always discuss your case and requirements at the outset of any instruction to agree costs prior to undertaking any work.
We can agree a fixed fee or we can charge on an hourly rate basis for our costs. The costs of any third party services, such as Counsel will be a disbursement in addition to our legal fees and such disbursements will not be incurred without your prior instruction.
Undisputed Debts
The following fixed fees apply to the undisputed amounts:
Stage 1: Pre-Action
Debt value Our fee (excluding VAT)
Up to £5,000 £300 (exc. VAT)
£5,001 – £10,000 £400 (exc. VAT)
£10,001 – £50,000 To be agreed
Work Covered
- 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, advising on next steps
Stage 2: Issuing Proceedings
Debt value Court fee Our fee (excluding VAT)
Up to £5,000 £35 – £205 £300 (exc. VAT)
£5,001 – £10,000 £455 £400 (exc. VAT)
£10,001 – £50,000 5% value of the claim To be agreed
Work Covered
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgment in default
- When Judgment in default is received, write to the other side to request payment
- If payment is not received within 14 days, providing you with advice on next steps and likely costs
Points to be aware of
Anyone wishing to proceed with a claim should note that:
- If your debt is for a figure below £10,000 then recovery of your legal costs is limited to Court fees and fixed solicitors fees of £72 – £195
- If you are successful in your claim for a value over £10,000 then you may be entitled to recover a proportion of your legal costs from the debtor
- 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 fixed fees include items detailed above, however there may be factors which would typically increase the cost of the fees. Where there is likely to be any additional cost, we will make sure you are informed of this at the earliest opportunity and a clear estimate of those extra costs will be provided.
How long will it take?
The time it takes to recover a debt depends largely on the stage at which your case is resolved. Straightforward matters where the debtor responds promptly could take 2 to 8 weeks from receipt of instructions from you to receipt of payment from the debtor. This may vary substantially if it is difficult to trace the debtor, or in complex cases. If court proceedings or enforcement action is necessary, the matter will take longer to resolve.
Disputed Claims
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.
The hourly rate Askews Solicitors change for debt recovery work (if no fixed-fee is agreed) is £220.00 per hour plus VAT.
Disputed claims can take up to 12-18 months to resolve.