Our debt recovery service for pre-Court action, includes the following:
- Taking your instructions and reviewing documentation.
- Sending correspondence to your debtor and dealing with any response(s).
- Receiving payment and sending it on to you, or if the debt is not paid, advising you on the next steps.
Our fees for this service are as follows:
- Debts of £1,000 or less – our fees will be 10% of the gross sum recovered (including VAT) plus VAT.
- Debts in excess of £1,000 – our fees will be £100 plus VAT plus 7% (plus VAT) of the recovered debt, insofar as the debt is between £1,000 and £25,000 in value with an additional 3% (plus VAT) of any part of the recovered debt, which exceeds £25,000.
Here are a couple of examples of our fees for pre Court debt recovery action:
- A recovered debt of £10,000 would generate a fee of £800 plus VAT ((7% of £10,000) £700 + £100 = £800 plus VAT).
- A recovered debt of £40,000 would generate a fee of £2,300 plus VAT ((7% of £25,000) £1,750 + (3% of £15,000) £450 + £100 = £2,300 plus VAT).
If there is no recovery of the debt, no percentage recovery fee will apply.
A Statutory Demand is a direct route to starting insolvency proceedings. Without a Court judgment, before you can serve a bankruptcy or winding up petition upon a debtor, you must serve a Statutory Demand for the outstanding debt. You can only use a Statutory Demand if the debt is in excess of £750, and is not disputed.
If a debtor fails to pay within the time limit, then insolvency proceedings may be started without notice to the debtor. A Statutory Demand can be a very powerful collection tool, so it has to be used carefully as there are risks of penalties in costs if misused.
Our fixed fee for this service, including service by post, is £75 plus VAT, whether there is a recovery of the debt or not. If a personal service of demand is required, the expenses incurred will be charged in addition to this cost.