DEBT RECOVERY

Debt Recovery Prices

We are proud to publish our debt recovery charges in accordance with the price transparency rules set out by our governing body, the Solicitors Regulation Authority.  At KTS Legal we aim for cost transparency and certainty in all the work we do for our clients.

This page sets out the costs for our commercial debt recovery work for claims up to the value of £100,000.00 against debtors located within England and Wales. Costs for debt claims above this value are available on request.

The costs below apply where the claim is for unpaid invoices which are not disputed. If the other party disputes your claim at any point prior to issue of proceedings, we will discuss any further work required and provide revised costs – these costs could be on a fixed fee, hourly rate or other funding arrangement such as a damages-based agreement or conditional fee agreement, depending on the circumstances of your case.

Stage 1: Pre-action
  1. 1. Simple letter before action (LBA)
    • » Company £450 plus VAT
    • » Individual £500 plus VAT
  2. 2. Fully compliant Pre-Action Protocol letter
    • » Company £650 plus VAT
    • » Individual £850 plus VAT

 

Timescale
Our simple LBAs normally require the debtor to pay within 3, 7 or 14 days (with the choice being that of our client). We can produce these within 24 hours if all the information has been given to us.

For fully compliant Pre Action Protocol letters, the debtor has a minimum of 30 days to respond and this can be extended to up to 90 days in complex cases. We can produce these within 24 – 48 hours depending on the level of complexity involved in the claim and the volume of accompanying documents.

Stage 2: Issuing legal proceedings

Claim amount

MCOL court fee

KTS Legal (plus VAT)

Recoverable fees

Up to £300

£25

£100

£75

£300 – £500

£35

£100

£85

£501 – £1,000

£60

£145

£130

£1,001 – £1,500

£70

£200

£270

£1,501 – £3,000

£105

£250

£355

£3,001 – £5,000

£185

£350

£535

£5,001 – £10,000

£410

£450

£860

£10,001 – £25,000

4.5% of the value of the claim

£250.00 per hour

4.5% of the value of the claim + £100

£25,001 – £50,000

4.5% of the value of the claim

£250.00 per hour

4.5% of the value of the claim + £100

£50,001 – £75,000

4.5% of the value of the claim

£250.00 per hour

4.5% of the value of the claim + £100

£75,001 – 100,000

4.5% of the value of the claim

£350.00 per hour

4.5% of the value of the claim + £100
Additional costs

For claims exceeding £100,000 and/or if the claim is particularly complex; or preparation time might be lengthy, we would charge our normal hourly rates which will be in region of £350.00 – £450.00 plus VAT per hour.

Timescale

A defendant will have 14 days from receipt of the claim form and/or particulars of claim in which to respond by filing an acknowledgement of service or a defence. If the defendant does not respond in time you can request judgment for the claim debt in default. If an acknowledgement of service is filed within 14 days of service of the claim form, the defendant then has a further 14 days to file a defence to the claim. If the defendant then fails to file a defence, judgment can be entered in default.

Stage 3: Requesting judgment

As mentioned above, if the debtor does not respond to your claim in time, you can request that the court orders them to pay and enters judgment against them. We will charge the following costs for this request. These costs are recoverable from the debtor should they then pay up.

Solicitors’ costs to request judgment:

Claim amount

KTS Legal Fee

Recoverable Costs

£25 – £5,000

£250 plus VAT

£22 – £55

£5,000 +

£400 plus VAT

£30 – £70
Timescale

When a request for judgment is submitted via MCOL, it is normally processed within 48 hours.

Stage 4: Enforcement of judgment against debtors

If you successfully obtain judgment against the debtor, you can instruct High Court Enforcement Officers (the HCEO) to try and enforce the judgment and recover payment.

 

Our fee to instruct HCEO

Court fee for judgement to be transferred to High Court

Total

£350 plus VAT

£66

£486 plus VAT for solicitors’ costs
Additional costs

If the debtor is unable to pay the judgment and the HCEO cannot enforce, you will be required to pay the HCEO an abortive fee of £75 plus VAT.

IIf it is necessary to correspond or otherwise liaise with the HCEO regarding the instruction, additional charges may apply which will be based on the hourly rate of the solicitor conducting your matter.

Timescale

IOnce the HCEO has been instructed, they will apply to transfer the judgment to the High Court. This can take 4-8 weeks subject to the court’s availability. The HCEO will then send a notice of enforcement to the debtor giving them seven days to pay. If the debtor fails to pay within this timeframe, an enforcement officer will be sent to attend their premises to try and make a recovery.

Additional services
(A) Statutory demand against companies or individuals

KTS Legal fee for preparation of a fully bespoke statutory demand

Process server’s fee (cost depends on location of debtor)

£1000.00 plus VAT

£150.00 – £250.00
Timescale

Statutory demands are normally served within 48 hours against companies and partnerships. They can take longer to serve against individuals as it can be harder to locate individuals. However, we act with trusted process servers who are very good at locating their subjects.

(B) Winding-up petition against companies

KTS Legal costs for drafting petition and arranging for issuing and service

Disbursements (mandatory costs)

£950.00 plus VAT

Court fee £280
Official Receiver’s deposit* £1,600
Process Server’s fee £150

If the debtor pays the debt and the petition is withdrawn or dismissed, the Insolvency Service will provide a refund of £1,550 for this fee after a period of time.

Timescale

It typically takes us 1-2 days from the date of instruction to draft and issue a petition and send it out to a process server for service.

Timescale

If you have received a court judgment that has not been set aside or appealed; or if a statutory demand has been validly served and not set aside, a bankruptcy petition can be presented against an individual or sole trader debtor.

Statutory demands are normally served within 48 hours against companies and partnerships. They can take longer to serve against individuals as it can be harder to locate individuals. However, we act with trusted process servers who are very good at locating their subjects.

Timescale

It typically takes us 1-2 days from the date of instruction to draft and issue a petition and send it out to a process server for service.

If you need any further advice or legal assistance, please contact us in confidence on 020 8367 0505 or email us on info@ktslegal.com and one of our solicitors will be able to help you.