At Ashtons Legal our debt recovery experts recognise that recovering unpaid invoices can be frustrating and time-consuming. We therefore understand the need for our clients to pursue unpaid invoices efficiently and vigorously in a cost-effective manner.
Our Debt Recovery Service is provided by a specialist team led by Leah Newcombe, who is supported by Abbie Clapham and Chloe Blake. We pride ourselves on the level of service we provide to our clients.
We aim to offer a personal service and pride ourselves on the level of service we provide to clients. We can recover debts of any size quickly and efficiently, with minimum cost to you.
The individual dealing with the case not only knows and understands the case but also knows and understands you and your business.
We aim to recover your debts for you as quickly and efficiently as we can.
We act for:
- PLCs
- Owner managed businesses
- Individuals
- Trustees in bankruptcy
- Liquidators.
If the debtor decides to defend the proceedings, we can advise you on the appropriate options available and, if necessary, re-allocate your case within the Dispute Resolution department.
We can also advise you on possible funding options to help you fight the case; please see our funding of disputes page for further information or contact us to discuss these options.
If you have international debts, we can advise you on how best and where to pursue these debts.
Step one – Letter Before Action
The first step is to send out a letter before action. We aim to send the letter before action as soon as reasonably possible after receiving your completed instruction form.
The letter before action will demand payment within 14 days where the debtor is a business.
If the debtor is an individual, the Pre-Action Protocol for Debt Claims requires us to give the debtor 30 days to respond and/or make payment. If the debtor does respond with a reply form within the required period, then the protocol requires the creditor to wait 30 days from the date of receipt of the completed reply form (or from any request for disclosure of documents) before starting proceedings.
The letter before action may also include a claim for interest/costs and statutory compensation for late payment under the Late Payment of Commercial Debts (Interest) Act 1998 as follows:
- For debts up to £999.99 – £40
- £1,000 to £9,999.99 – £70
- £10,000 plus – £100.
Often, the letter before action prompts a response from the debtor.
Step two – Court proceedings or statutory demand
The second step, if no response is received, is to issue court proceedings or, if appropriate, serve a statutory demand on the debtor.
This will include a claim for the debt, court fees, costs, statutory compensation for late payment (where appropriate) and interest.
Interest can be recovered either:
- Under the terms of the contract with the debtor
- Pursuant to the County Courts Act 1984 – currently 8% from the due date of the invoice to Judgment
- Pursuant to the Late Payment of Commercial Debts (Interest) Act 1998 – currently 8% above the Bank of England base rate.
In some circumstances, a statutory demand may be served on the debtor. This would fall outside our debt recovery service and referred to our Insolvency team.
Step three – Enforcement
The third step, once Judgment has been obtained, is to enforce the Judgment. There are a number of enforcement options available, and we can instruct bailiffs under our fixed-fee debt recovery service.
If you wish to consider another method of enforcement, we will provide you with a quote for assistance.
Our debt recovery charges
Letter before action
| Debt £ | Our fees (excl VAT) £ |
|---|---|
| Up to 999.99 | 150 |
| 1,000 to 9,999.99 | 250 |
| 10,000 to 25,000 | 580 |
| 25,000 plus | Quote required |
Issue of proceedings
| Debt £ | Court fees £ | Our fees (excl VAT) £ |
|---|---|---|
| £0 to £300 | 35 | 200 |
| £300.01 to £500.00 | 50 | 200 |
| £500.01 to £1,000.00 | 70 | 200 |
| £1,000.01 to £1,500.00 | 80 | 500 |
| £1,500.01 to £3,000.00 | 115 | 500 |
| £3,000.01 to £5,000.00 | 205 | 500 |
| £5,000.01 to £10,000.00 | 455 | 750 |
| £10,000.01 to £25,000 | 5% of the value of the claim | Fixed recoverable costs |
| £25,000.01 plus | 5% of the value of the claim | Quote required |
Entering judgment
| Entering Judgement | Court fees £ | Our fees (excl VAT) £ |
|---|---|---|
| 1. In default of an acknowledgement of service | ||
| £25 to £5,000.00 | 0 | 75 |
| £5000 plus | 0 | 150 |
| 2. In default of a defence | ||
| £25 to £5,000.00 | 0 | 75 |
| £5000 plus | 0 | 150 |
| 3. On Admission | ||
| £25 to £5,000.00 | 0 | 75 |
| £5,000 plus | 0 | 150 |
Enforcement
| Enforcement | Debt £ | Court fees £ | Our charges (excl VAT) £ |
|---|---|---|---|
| Warrant of Execution – County Court Bailiff | £0–£599 | 91 | 150 |
| Warrant of Execution – High Court Enforcement Officer | £600+ | 78 | 150 |
N.B. If unsuccessful, the High Court Enforcement Officer will also charge £75.00 + VAT abortive fee.
Please note that we will require our fees and the court fees to be paid on account at the start of each step.
We will send you a receipted invoice at the end of each step. Where possible, we will seek to recover some costs from the debtor.
For debts up to £100,000, recoverable costs are fixed in line with the Civil Procedure Rules. We will advise you on what fixed costs may be able to be recovered.
Our fees for debts between £10,000 to £25,000 are set in accordance with what you can recover under the fixed costs regime.
For further information or an informal chat, please get in touch with Leah Newcombe on 01603 703234 or leah.newcombe@ashtonslegal.co.uk.