Debt Recovery Costs
Most contractual disputes will involve damages, indebtedness or both. Claims for sums due under an invoice can often be complicated by a variety of defences, which can range from arguments over the meaning of a contractual term to disputes concerning the level of performance rendered in relation to the sum claimed, or cross-claims made by the debtor. Where a claim is likely to be disputed, or where the other party disputes your claim at any point, we will discuss the work required and provide you with information concerning estimated costs to the extent practically possible, and/or an hourly rate if more extensive work is needed. We provide information on what to expect in relation to litigation costs in our terms prior to you instructing us.
In some cases, there is no attempt made to defend the claim and the debt is considered undisputed. Where proceedings are issued before payment of an undisputed debt is made, and such proceedings are not defended, we can better estimate the costs involved. However, it is not possible to be definitive on this until after the issue of proceedings as when the claim is lodged with the court it is an unknown factor as to whether the other party will admit, ignore or defend the claim
Costs are based on our hourly rates, which, depending upon the qualification, experience and seniority of the fee-earner(s) engaged in the work and the type of work involved, will range from £140.00 to £450.00, exclusive of VAT. For some specific tasks, it might be possible to offer a fixed or capped fee because the time and complexity is understood at the outset, is predictable and is within our control. Such fixed or capped fees are generally calculated with reference to an hourly rate or rates. Please note that, unless you are exempt, e.g. because you are domiciled overseas, you will need to pay UK VAT in addition to the fees, and the estimates for our legal fees given on this page are exclusive of VAT.
Where a claim is made for an undisputed debt and the claim is undefended, we estimate the following costs: