This type of work generally falls into two distinct areas:
1. Disputed debts - If it is a business matter it can be due to e.g.
allegations that the goods or services have not been supplied on time
or to specification etc. These are dealt with as a Business and Contract dispute.
2. Undefended debts - where you are either receiving (a) promises of payment shortly
but no actual money is materialising or (b) complete silence. It also covers
situations where you have secured a judgement, perhaps through the small claims
court but that judgment has not been paid and you are not sure how to go about
enforcing it.
Our Debt Recovery Team deals with the undefended debt on a fixed fee basis.
The most important issue for you to consider before instructing us is - does the debtor have the means to pay the debt? Getting a judgment is the first stage and normally the easy bit - getting paid the money is the primary goal.
The Court requires a letter to be sent to the debtor specifying certain things and confirming that if the debt has not been paid within 14 days Court proceedings will be issued. Our charge for checking your paperwork and sending that letter is £20 plus vat. If your debtor pays on receipt of that letter, the £20 plus vat is the sum you pay us for further information click here
If we issue proceedings on your behalf, the Court allows a sum - called fixed costs - to be added to the claim form. The Court also charges an issue fee which again you are allowed to add to the debt.
For example: on a debt of £12,000.00 the Court issue fee is £225 and the fixed costs £100. The Claim will therefore be for £12,325.00. If the debtor pays up in full on receipt of the Court papers, you keep the £12,000.00. and reimbursement of the Court fee and we keep the £100. as our payment.
If a claim is defended the case is transferred from our debt recovery team to our dispute resolution solicitors and work is charged for at their hourly rates plus vat.
Click here to view fact sheet on Enforcement