Debt Recovery
Being unable to recover money your business is owed can be frustrating, stressful and, of course, financially debilitating.
That is why Attwaters Jameson Hill operates a fixed-fee debt recovery scheme designed to support businesses in recouping unpaid invoices. Any undisputed invoice payable by a company in England and Wales is eligible for the scheme.
We are not a debt recovery firm; we are a team of commercial dispute resolution specialists with knowledge and expertise required to give you the very best legal advice and support your business in achieving the outcome you are looking for. Outside of our scheme, we also provide support for businesses dealing with disputed debts, and can also provide advice and guidance on your procedures, terms and conditions to help avoid similar problems in the future.
From the initial Letter Before Action (LBA) to achieving a judgement and taking enforcement action, our scheme provides end-to-end support throughout the debt recovery process.
Our Service Pledge
We make a solemn promise to every client who passes through our door – whether the debt they are looking to recover is small or large. Our Service Pledge is our guarantee to you that we will be proactive, respond when we say we will, bring solutions to the table and always treat you politely, professionally and with respect.
We will work with you no matter where you are in the debt recovery process, whether you have just run into a debt recovery problem or are at a later stage in proceedings. Whatever happens, our mission is to ensure your business gets paid.
The debt recovery process
Our Dispute Resolution team is here to help you through the whole debt recovery process, which usually proceeds as follows:
- Letter Before Action – a Letter Before Action (LBA) is sent to the debtor to demand payment, including any interest and fees that you may be owed. Many debtors do pay up at this stage of proceedings.
- Next steps – if the debtor does not pay you, or does not pay in full, then you must consider your next steps. Depending on the size of the debt, an expensive court case may not be in your best interests. In some cases, initiating insolvency proceedings straight away may be the best option for your circumstances. The LBA we issue your debtor at the beginning of the process will however be compliant with the court’s pre-action protocols, so we can move straight to litigation if this is the most suitable option.
- Court proceedings – our lawyers will draft and issue the court proceedings, setting out the details of your claim and the amount (including interest, costs and any other entitlements) you are seeking. The court will then usually serve them on the debtor.
- The judgment – the debtor has 14 days to respond to the court proceedings. Unless they dispute the debt or pay up, the court will usually hand down a judgment against them.
- Enforcement – the sanctions for failing to pay the debt within a month of the judgment being handed down can be serious. It can have a serious impact on the debtor’s credit rating, so we usually find that most outstanding debts will be paid at this point. Should this not be the case, we can advise you on the enforcement options available to you.
What we charge
Letter Before Action (LBA) – £40
Court Proceeding
We charge a fixed fee that is dependent on the value of the debt (inclusive of interest and other charges), as follows:
| Amount | Court Fee | Our Fee | Total Cost |
|---|---|---|---|
| Less than £300 | £35 | £50 | £85 |
| £300 – £500 | £50 | £50 | £100 |
| £500 – £1,000 | £70 | £70 | £140 |
| £1,000 – £1,500 | £80 | £80 | £160 |
| £1,500 – £3,000 | £115 | £80 | £195 |
| £3,000 – £5,000 | £205 | £80 | £285 |
| £5,000 – £10,000 | £455 | £100 | £555 |
| £10,000 – £200,000 | 5% of claim value | £100 | £600 – £10,000 |
| More than £200,000 | £10,000 | £100 | £10,100 |
Judgment
| Amount | Our Fee |
|---|---|
| Up to £1,000 | £50 |
| £1,000 – £5,000 | £150 |
| More than £5,000 | £250 |
Enforcement
| Enforcement Action | Court Fee | Our Fee | Total Cost |
|---|---|---|---|
| Charging Order or Third Party Debt Order (no hearing) | £131 | £200 | £331 |
| Charging Order or Third Party Debt Order (with hearing) | £131 | £400 | £531 |
| Attachment of Earnings Order | £131 | £65 | £196 |
| County Court Warrant of Control Against Goods | £91 | £60 | £151 |
| High Court Writ | £78 to issue £75 if abortive |
£120 | £195 – £198 |
| Order to Obtain Information | £65 to issue £196 to serve |
£100 | £165 – £296 |
Please note that all above costs are subject to VAT at 20%.
For more information on our charges, please read our Terms and Conditions here.
Timescales
The time required to complete each stage of the debt recovery process is variable as it mostly depends on the courts and their speed in dealing with your matter.
However, we have set out time estimates for each step in the below table to give you an idea of how long things should be taking.
| Action | Timescale |
|---|---|
| Response to LBA | 30 days |
| Issuing and serving court proceedings | 14 days |
| Applying for judgment | 14 days from service; 28 days if the debtor files acknowledgement of service |
| Obtaining judgment from the courts | 14 days |
| Enforcement action (where necessary) | 4-12 weeks depending on course of action |
