In an ever changing economic climate one thing that will always have a negative affect on a business is when a client, customer or contractor fails to pay for a service. At Stephensons our experienced team provide a low cost, reliable and effective debt collection solution. For more information about our debt recovery service call 01616 966 229.
You can instruct our debt recovery team to send out a letter before action online by completing our instruction form 24 hours a day. We guarantee to send a letter before action on the same day of instruction (subject to payment) unless your instructions are received after 4pm.
Should further action be required our solicitors can help you every step of the way, whether issuing legal proceedings or even bankruptcy and winding up proceedings. For more information please do not hesitate to contact us.
Fixed price debt recovery - what does it cost?
These costs apply where your claim relates to an unpaid invoice or invoices which are not disputed and enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs which might be on a fixed fee or an hourly rate. The fixed fees set out below do not include giving you any advice about your claim.
Stage 1: Pre action
Letter before action
Is it a company debt or individual/sole trader?
Company - letter before action: £25 plus VAT
Individual/sole trader - letter of claim: £65 plus VAT
International - letter before action: £65 plus VAT
Letters before action sent to companies usually require the debtor to pay within 14 days, but letters to individuals provide for a 30 day period in accordance with guidelines laid down by the court and the time limit for payment in international letters before action may vary.
Pre action debt recovery and assistance
We can assist you in corresponding with your debtor to resolve disputes and recover your debt without the need for legal action. We offer fixed fees at each stage of this process, which might involve a second letter demanding payment or lengthy negotiations to reach a Settlement Agreement or repayment plan.
Fixed fees for pre action assistance
Second letter of demand: £35 plus VAT
Review and advice on response received from debtor: £75 plus VAT
Preparing detailed reply to debtor and final demand or offer of settlement: £105 plus VAT
Negotiating settlement/instalment plans and drafting settlement agreement: £175 plus VAT
Pre action advice on recovery
We offer a fixed fee service to review your invoices and contract and advise you on the most effective method of recovery; the options available to you; pre action protocol requirements and your right to receive interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998.
Our fixed fee for this service is £175 plus VAT.
Stage 2: Court action
Court claims - issue claims
| Debt | Court Fee | Stephensons' Fee |
| Up to £300 | £35 | £140 plus VAT |
| £300 - £500 | £50 | £140 plus VAT |
| £500 - £1,000 | £70 | £160 plus VAT |
| £1,000 - £1,500 | £80 | £200 plus VAT |
| £1,500 - £3,000 | £115 | £200 plus VAT |
| £3,000 - £5,000 | £205 | £200 plus VAT |
| £5,000 - £10,000 | £455 | £400 plus VAT |
| £10,000 - £200,000 | 5% of claim | £700 plus VAT |
| Over £200,000 | £10,000 | Bespoke fees apply |
Please note the fixed fee includes the costs to issue the claim and request default judgment, if available. Once the court has served the claim a debtor has 14 days in which to acknowledge service of the claim and then a further 14 days to file a defence. After the 14-day period has expired a request can be made to the court for judgment to be entered. Our fee to draft and submit your request for default judgment is included within our fixed fee for issue.
Timescale: It usually takes the court about 10 working days to enter judgment following receipt of a request to enter judgment.
Additional services if necessary
Price alongside service is for our legal fees, related third party costs may also be payable for specific services.
Stage 3: Enforcement
Once judgment has been obtained, enforcement action may be needed to recover the sums awarded by the court.
We will write to the debtor demanding payment of the judgment debt and where appropriate inform the debtor of the enforcement action to be taken if payment is not made.
Our fees for these letters are:
Letter demanding payment of judgment: £40 plus VAT
Letter to Company Debtor warning of intention to present Winding Up Petition: £80 plus VAT
If you require a detailed advice on the enforcement options available to you we will provide that advice for a fixed fee of £75 plus VAT.
Enforcement proceedings
Writ of control: £85 plus VAT otherwise known as instructing a High Court Enforcement Officer to seize goods in satisfaction
Related third party costs
- Court fee - £71
- HCEO fee - £90 payable if the warrant is not successful
Timescale:A writ of control may be issued once judgment has been obtained but whether or not any recovery will be made depends on the debtor’s ability to pay and whether there are any assets which may be seized, or whether a repayment agreement is made. A typical enforcement by writ of control may take about 8-12 weeks from instruction. If we are required to enter into correspondence about the enforcement then the matter will no longer be treated as a fixed fee enforcement and additional charges will apply.
Warrant of execution: £85 plus VAT
Related third party costs
- Court fee - £83
Timescale: As above
Attachment of earnings: £250 plus VAT
This is applicable in cases where the attachment of earnings is obtained without a hearing or further applications/revisions to deal with debtors who have not been found or their employment has changed.
Related third party costs
- Court fee - £119
Time scale: An attachment of earnings order can sometimes be obtained within about 6-8 weeks of the application for an attachment of earnings order being issued by the court.
Charging order: £600 plus VAT (excluding hearing)
Related third party costs
- Court fee - £119
- Agent’s fee for attendance at court if necessary - depends on location
- Registration of charging order - £40
- Search fee - £11
Timescale: An interim charging order can sometimes be obtained within about 2-3 weeks of application being made to court. The timescale for the final charging order will depend upon whether the debtor files an objection and if the Court lists the case for a hearing. Without any objections or a hearing it would be a further 4-6 weeks.
Third party debt order: £600 plus VAT
Related third party costs
- Court fee - £119
- Agents fee for hearing - depends on location
Time scale: A third party debt order can sometimes be obtained within about 8-12 weeks of the application being issued by the court.
Order that debtor attends court for questioning/oral examination: £300 plus VAT
Related third party costs
- Court fee - £119
- Agent fee for hearing if required - depends on location
- Process server - up to £150 plus VAT
Time scale: The debtor will usually be required to attend court for questioning within about 8-12 weeks of the application being made.
Insolvency proceedings
Issue of statutory demand for companies and individuals: £550 plus VAT
Related third party costs
- Process server fee - up to £250 plus VAT
Timescale: A statutory demand should only be made where the debt is not disputed for example where there is a judgment or an admission that the debt is due. A statutory demand can be prepared on receipt of instructions and is then usually sent to a process server for personal service. Personal service generally takes about 1-2 weeks via a process server.
Bankruptcy proceedings: £2,250 plus VAT
This is applicable to cases where the matter is determined at the first hearing, there are no issues with regards to service and is only applicable in cases whereby the debt is not disputed or if a court judgment has been obtained which has not been set aside or appealed.
Related third party costs
- Process server - up to £250 plus VAT
- Court fee - £302
- Official receivers deposit - £1,500
- Agent for hearing - depends on location
- Search fee - £11
Time scale: A bankruptcy order can usually be obtained within about 8-12 weeks of the petition being issued by the court.
Company winding up: £2,250 plus VAT
This is applicable to cases where the matter is determined at the first hearing and is only applicable in cases whereby the debt is not disputed or if a Court judgment has been obtained which has not been set aside or appealed.
Related third party costs
- Court fee - £302
- Official receivers petition deposit - £2,600
- Process server - up to £250 plus VAT
- Agent fees for hearing- depends on location
- Advertisement in London Gazette - £101.52
Time scale: A winding up order can usually be obtained within about 8-12 weeks of the petition being issued by the court.
What qualifications do the team hold?
All debt recovery work is supervised by a qualified solicitor. Specific experience can be seen in the individual staff profiles.
We are happy to discuss your individual needs and tailor a debt recovery package for bulk debt recoveries.