Debt Collection

We use our experience to provide cost effective solutions in recovering debts to maximise cash flow for your businesses. Below lays out how our team can help with the debt collection process.

 

Stage 1 – Initial Consultation and Letter Before Action

 

  • Taking instructions
  • Reviewing documentation
  • Preparing letter before action
  • Reporting  the response back to the client

£200 plus VAT or 10% of the money recovered (whichever figure is higher).

Please see cost section at the bottom of this page for more details of our pricing structure.

 

Stage 2 – Court Claim

 

If the debtor hasn’t made the payment after the initial process, we will issue a claim in the County Court and seek an undisputed judgment against the debtor.

We can claim for the amount owed by the debtor and any Interest and compensation that would be payable on the debt.

£350 plus VAT

 

Stage 3 – Insolvency

 

We can advise on the best way to secure payment of the money owed to you. This may mean service of a Statutory Demand. We can draft and arrange for service of the Statutory Demand, if interested. When the individual or company that owes you money (the ‘debtor’) receives a statutory demand, they have 21 days to either pay the debt or reach an agreement to pay.

If payment is not received we can, if instructed, issue a Bankruptcy of Winding up Petition.

Statutory Demand – £400 plus VAT

Bankruptcy or Winding Up Petition – £750 plus VAT

 

Stage 4 – Enforcement

 

If a County Court Judgment (CCJ) has been entered against a debtor it is then possible to ‘enforce’ that Judgment immediately. Various enforcement options are available and we will advise you of your options if and when we get to this stage.

£500 plus VAT

The above assumes that the debts are not disputed. If at any stage the debt does become disputed the matter will need to be dealt with by the Dispute Resolution team. If this becomes necessary we can advise you on the costs that may be involved. There may be other costs on top of our fees called ‘disbursements’. These are fees and charges that we will need to pay on your behalf. This is part of the process, such as court fees, Barrister’s fees, and expert fees.

 

Timescale

 

The time it takes to recover a client’s debt varies. We will act swiftly, although, external factors can delay debt collection the process. Our solicitors will keep you informed throughout the process.

The above figures are the minimum costs for each service. If your debt is recovered we will charge 10% plus VAT of the money recovered. If 10% of the recovered funds is lower than the minimum costs, we will charge the fees set out on this page.

 

VAT

 

We are obliged to charge VAT (at the standard rate – currently 20%) on our costs and on those disbursements that are subject to VAT at the applicable rate. All cost estimates provided are exclusive of VAT.

 

If you would like more information on debt collection, please contact:

 

Karl Thomas, Partner and Head Employment and Dispute Resolution

Karl did his law degree at the University of Nottingham and Sports Solicitorqualified as Solicitor in 2001 completing his training in a West End of London practice before returning to Cardiff in 2003. He joined Loosemores in October 2005.

Since qualification Karl has specialised in Dispute resolution and Employment law and has latterly headed up the Loosemores HR retainer service. He has a proven track record in mediation and alternative dispute resolution, and a background in sports law having advised numerous national governing bodies on regulatory and disciplinary matters.

Over the years Karl has gained experience with a huge array of contentious issues and is able to provide practical, commercial advice to obtain good outcomes for clients.

 

Number –  029 2022 4433
Email – post@loosemores.co.uk