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Debt recovery – Our Fees

Lester Aldridge’s Litigation & Recoveries team is one of the leading legal debt collection teams in the UK, specialising in bulk debt and asset recovery.

Our services are tailored to individual clients through the use of the latest technology using our bespoke case management system.  We understand our clients’ businesses and processes and manage collections in a way that fits our clients’ individual debt profiles.

Our reporting capabilities are endless and our leading members are able to provide supporting services such as bespoke training and secondment support.

The following applies to businesses with a potential debt recovery requirement of up to the value of £100,000.

The general timescale

Court Proceedings

  • A Letter Before Claim will usually be issued at the outset, giving the debtor 7 days to make payment. If the debtor is a sole trader/consumer, they will be given 30 days to respond in line with the pre-action protocol for debt claims.
  • In the event that payment is not made and terms for settlement are not agreed, instructions will be sought to issue court proceedings. Debtors have 14 days to respond to the claim, or if an acknowledge of service is filed, a total of 28 days to file details of their defence.  Otherwise we can seek judgment by default and enforce it
  • If the claim is defended and it is for under £10,000, it is likely to be allocated to the Small Claims and will probably be heard in about 3 months
  • If a claim for more than £10,000 is defended, more complex court proceedings are likely to follow and it could be some months before the matter comes to trial
  • The timescale for enforcement will very much depend on the case itself, how the court deals with the case and the enforcement method that is chosen for the individual judgment.

Insolvency Proceedings

  • Where there is no arguable defence to a claim it is sometimes appropriate to consider bankruptcy or winding-up proceedings. We will advise our clients if we think this is a more appropriate action than regular court proceedings.
  • In the case of an individual, it is usually necessary to serve a statutory demand on the debtor after which he or she has 18 days to pay the debt or set aside the statutory demand. If he or she fails to do so, we can then issue a bankruptcy petition which is usually heard within about 6-12 weeks.
  • In the case of a company we will serve a formal demand requiring payment of the debt within a time frame agreed with our client. If payment if not made within that time we will issue a winding-up petition which is usually heard within about 6-12 weeks.

Funding Options

Claims can be funded in different ways and funding options will be considered carefully with clients.

You may hold legal expenses insurance.  Even if you do not have such insurance, you may be able to minimise your risk by obtaining further insurance against adverse costs orders which might be made in court proceedings.  This is sometimes called “After The Event” or “ATE” legal expenses insurance.

We may require money on account from clients before undertaking work.

Our ordinary rates are:

Status of lawyer LA’s ordinary rate £ (+ VAT)
Solicitors and legal executives with over 8 years’ experience £230
Solicitors and legal executives with over 4 years’ experience £190
Other solicitors or legal executives and fee earners of equivalent experience £160
Trainee solicitors, paralegals and other fee earners £90

Wherever possible, work is undertaken on agreed fixed fees and example costings for business to business debt collection are set out below.

Instruction Fee

Instruction charges may be dependent on the volume of referrals and work required. Where possible, the instruction charge will be fixed or calculated on a % basis and the fee will be agreed with our client at the outset.

Court Fees on issue of Claim Form

(Recoverable if successful)

Sum claimed no more than Court Fees
Up to £300.00 £35.00
£300.00 not over £500.00 £50.00
£500.00 not over £1,000 £70.00
£1,000 not over £1,500 £80.00
£1,500 not over £3,000 £115.00
£3,000 not over £5,000 £205.00
£5,000 not over £10,000 £455.00
£10,000 not over £200,000 5% of the value of the claim
Over £200,000 £10,000

 Solicitors Fixed Costs on the Claim Form

(Recoverable if successful)

Sum claimed Costs
£25.00 – £500.00 £50.00
£501.00 – £1,000.00 £70.00
£1,001.00 – £5,000.00 £80.00
£5,001.00 Plus £100.00

Solicitors Fixed Costs on Judgment

(Recoverable if successful)

Sum from £25.00 to £5,000.00 Sum exceeding

£5,000.00

Judgment entered in default action in default of defence £22.00 £30.00
Judgment entered on defendant’s admission and claimant’s acceptance as to mode of payment £40.00 £55.00

 

Judgment entered following admission and proposals rejected £55.00 £70.00
Judgment following acknowledgement of service £25.00 £35.00

Enforcement fees

(Recoverable from debtor unless otherwise stated)

Item Costs
Charge per case enforcement £20.00 (not recoverable)
Court Disbursement – fee Order to attend court for questioning £55.00
Agents Service Fee (where required) £95.00
Court disbursement – fee Attachment of Earnings Application £110.00
Court disbursement – fee Warrant of Control £110.00 + £2.25 fixed costs
High Court Writ (HCEO) £66.00 Court disbursement & £51.75 fixed costs
HCEO fee abortive visit £75.00

(not recoverable)

 Other enforcement – Charging Order

Item Costs
Court Disbursement – fee Charging Order £110.00
Fees for requesting office copies £20.00 (inc fee £4.00)
LR Notice/Restriction fee £20.00/40.00
Advocate attendance fee (where required) £70.00
Our charges £250.00-350.00 (of which £110.00 recoverable)

 Bankruptcy

Item Costs
Our charges for preparing Statutory Demand £200.00-500.00
Service of Statutory Demand £75.00-95.00
Our charges for preparation of Petition £500.00-1000.00
Agents Fee for issue of Petition (if required) £20.00
Court Disbursement – Petition Fee/OR deposit £1270.00
Service Fee £75.00-95.00
Hearing attendance £70.00 (minimum)
Adhoc/disputed insolvency matters Hourly rates

 Winding Up

Item Costs
Our charges for preparation of petition £500.00 – 1000.00
Court Disbursement – Petition Fee/OR deposit £1880.00
Service Fee £75.00-95.00
Gazette fee £82 + £2.30
Hearing attendance £50.00 (minimum)
Adhoc/disputed insolvency matters Hourly rates

Defended

Item Costs
Small Claims £250.00-£750.00
Fast Track/Multi Track/Counterclaims Hourly rates
Application to Set Aside Judgment £250-500.00
Agents Fees/Other Court Disbursements As advised

***VAT applies to all fees and some disbursements***

The Team

Ann Lloyd – Ann is a Partner, qualifying as a solicitor in 2004. In 2016 Ann was named in the Credit 100 most influential people in the industry.

Carla Hillman – Carla is a Director qualifying as a Fellow of the Chartered Institute of Legal Executives in 2015.

Danielle Montezuma – Danielle is a Partner, having qualified as a solicitor in 2009.

Tim Brodie – Tim is an Associate Solicitor having qualified in 1999.

Helen Whittam – Helen is a Solicitor having qualified in 2009.

Elin Thomas – Helen is a Solicitor having qualified in 2018.

Hilary Basnett – Hilary is a  Team Leader and senior paralegal and has worked in the industry for over 20 years.

Jessica Marshall – Jess is a Team leader and paralegal and has worked in the industry for over 7 years.

Emma Bowditch – Emma is a paralegal has worked in the industry for over 2 years.

Meet our Debt Recovery specialists

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