Debt Recovery Pricing

Thank you for considering B&M Law LLP for your debt recovery requirements.

Unpaid debts can have a significant impact on cash flow and on the operation of a business. Our aim is to help clients recover money that is due to them efficiently, proportionately and with a clear understanding of the costs involved.

We regularly act for UK and international businesses, professionals and individuals in recovering debts from debtors in England and Wales.

Our debt recovery work is undertaken by lawyers with experience in commercial disputes and litigation. This means that, where a straightforward recovery develops into a substantive dispute, we are able to advise on the wider legal and commercial issues without the need to transfer the matter to another firm.

Our multilingual and international practice also means that we are particularly accustomed to assisting overseas businesses seeking to recover debts from customers, distributors and other counterparties in England and Wales.

Why Choose B&M Law LLP?

A proportionate approach to debt recovery

Not every unpaid invoice requires court proceedings.

In many cases, a properly prepared solicitor's letter before action is sufficient to achieve payment. We therefore structure our fees by stage, so that you pay for the work that is actually required rather than paying at the outset for steps which may never become necessary.

We will discuss the available options with you and recommend an approach which is proportionate to the amount at stake, the debtor's circumstances and the prospects of recovery.

Experienced litigators if the debt becomes disputed

The fixed fees on this page apply to straightforward, undisputed debt recovery.

If the debtor disputes liability, raises a counterclaim or set-off, or the matter otherwise develops into a substantive dispute, the work will fall outside the fixed-fee debt recovery service.

We will explain the position to you and provide an estimate or alternative fee arrangement before undertaking substantial additional work.

Commercial and international experience

We regularly assist businesses across different sectors and understand that debt recovery is not simply a procedural exercise.

Depending on the circumstances, you may wish to recover the debt firmly while preserving an ongoing commercial relationship. In other cases, immediate and robust action may be appropriate.

We can also assist international creditors seeking payment from debtors in England and Wales. We do not charge an additional fee simply because a client is based overseas or wishes to communicate with us in another language. However, additional fees may apply where the international nature of a matter creates additional legal work, for example because of jurisdiction, governing law, foreign documentation or cross-border service issues.

Our Fixed-Stage Pricing

We appreciate that certainty about costs is particularly important in debt recovery.

Rather than charging one fee covering every possible step from the initial letter through to judgment, we normally charge a fixed fee for each stage of an undisputed recovery.

You therefore only incur the fee for the next stage if that work becomes necessary.

The fees below exclude VAT at the current rate of 20%.

Stage 1 – Initial Review and Letter Before Action

£450 + VAT

Our standard Stage 1 fee includes:

• taking your initial instructions;

• reviewing the principal contract, invoices and relevant correspondence;

• carrying out appropriate basic searches in relation to the debtor;

• considering the basis upon which the debt is claimed;

• advising on interest and recovery costs which may be claimed, where applicable;

• preparing and sending a formal letter before action;

• considering and reporting to you on any initial response from the debtor; and

• receiving and remitting payment to you where the debt is paid following the letter before action.

The standard fee assumes that the documentation is reasonably straightforward and that the debt is not disputed.

Where substantial documentation or complex legal issues require a more extensive review before a letter can properly be sent, we will agree any additional fee with you before undertaking that additional work.

Stage 2 – Issuing Court Proceedings

If payment is not received following the pre-action process and you instruct us to issue a straightforward claim, our additional fixed fee will normally be:

This fee ordinarily includes:

• preparing the claim form and straightforward particulars of claim;

• calculating the principal sum, interest and any other sums properly claimed;

• issuing the proceedings; and

• dealing with the administrative steps immediately following issue.

The applicable court issue fee is payable in addition to our fee and is paid to HM Courts & Tribunals Service. The amount depends on the value of the claim. We will confirm the applicable court fee before proceedings are issued.

Stage 3 – Obtaining Default Judgment

Where the debtor fails to respond to the proceedings within the prescribed time and the claim is suitable for default judgment:

£250 + VAT

This includes preparing and submitting the straightforward request for judgment in default and reporting to you once judgment has been entered.

The fee does not include dealing with an application by the debtor to set aside judgment.

Stage 4 – Post-Judgment Demand and Initial Enforcement Advice

Where judgment has been obtained but the debtor does not pay voluntarily:

£200 + VAT

This includes:

• notifying or writing to the debtor following judgment where appropriate;

• requesting payment of the judgment debt; and

• providing initial advice on the principal enforcement options available.

Any enforcement proceedings are charged separately.

Example of How Our Staged Fees Work

If a debtor pays after receiving our letter before action, you will normally pay only our Stage 1 fee of £450 + VAT.

If it becomes necessary to issue proceedings, the appropriate Stage 2 fee will then become payable.

If the debtor still fails to respond and default judgment is required, the Stage 3 fee will become payable.

This approach means that you pay for the work actually required to recover your debt rather than paying from the outset for procedural stages which may never become necessary.

Claims Above £100,000

For claims exceeding £100,000, please contact us for an individual quotation.

Our fee will depend on factors such as the documentation involved, the legal and factual complexity of the claim, the identity and location of the debtor and the procedural steps likely to be required.

The amount of the debt is relevant, but it is not the only factor determining our fee.

Disputed Debts

The fixed fees above apply to undisputed debts.

A matter will ordinarily fall outside our fixed-fee debt recovery service if, for example:

• liability for the debt is disputed;

• the debtor alleges defective goods or services;

• a contractual dispute is raised;

• the debtor asserts a counterclaim or set-off;

• substantial correspondence or negotiation becomes necessary;

• an application to the court is required;

• a judgment is challenged or an application is made to set it aside; or

• the matter proceeds towards a contested hearing or trial.

If this happens, we will explain the implications to you and provide an estimate for the additional work. Depending on the circumstances, we may offer a further fixed fee, a staged fee or charge according to our usual hourly rates.

What Else Can Affect Our Fees?

Our fixed fees assume that the debt recovery is reasonably straightforward.

Additional fees may apply where the matter requires additional legal work because of factors such as:

• a large volume of invoices or supporting documentation;

• multiple debtors;

• uncertainty concerning the contractual basis of the debt;

• complicated calculations of interest or other sums due;

• tracing a debtor;

• insolvency issues;

• unusual contractual provisions;

• jurisdiction or governing-law issues;

• service of proceedings outside England and Wales;

• foreign-language or overseas legal documentation requiring additional consideration;

• complex corporate structures;

• substantial negotiations with the debtor;

• applications to the court; or

• other circumstances which materially increase the amount or complexity of the work required.

We will not increase our fee simply because an issue arises during the ordinary course of debt recovery. Additional charges will apply only where additional work falls outside the agreed fixed-fee scope.

Wherever reasonably possible, we will explain the additional work and agree the associated fee with you before that work is undertaken.

Interest, Compensation and Recovery Costs

Depending on the nature of the debt and the terms of the relevant contract, you may be entitled to claim interest and, in some commercial cases, statutory compensation or recovery costs.

We will advise you on what can properly be claimed as part of the debt recovery process.

You should not assume, however, that all of the legal fees you incur will be recoverable from the debtor.

The amount of legal costs recoverable will depend on the circumstances of the case, the value of the claim, the applicable court rules and, where relevant, the terms of the contract between the parties.

The treatment of VAT on recoverable legal costs will also depend, among other things, on whether you are entitled to recover that VAT as input tax.

In particular, recovery of legal costs is generally limited in claims allocated to the small claims track.

We will advise you about potential costs recovery where court proceedings become necessary.

Enforcement

Obtaining judgment does not necessarily mean that the debtor will pay voluntarily.

If enforcement is required, we will discuss the most appropriate option with you before further costs are incurred.

Depending upon the circumstances, enforcement options may include:

• instructing a County Court or High Court Enforcement Officer;

• obtaining information about the debtor's financial circumstances;

• an attachment of earnings order, where appropriate;

• a charging order over property;

• a third-party debt order; or

• insolvency procedures where legally and commercially appropriate.

For straightforward enforcement work, our indicative starting fees are:

Court fees, enforcement officer fees, process server fees, counsel's fees and other third-party costs are payable separately where applicable.

The appropriate method of enforcement depends upon the debtor's circumstances. Before recommending enforcement action, we will consider with you whether the likely cost is proportionate to the prospects of recovery.

Disbursements and Third-Party Costs

Disbursements are sums payable to third parties rather than fees charged by B&M Law LLP.

Depending on the matter, they may include:

• court fees;

• Companies House or other search fees;

• tracing agent fees;

• process server fees;

• enforcement officer fees;

• counsel's fees; and

• other specialist third-party costs.

Where a material third-party cost is required, we will tell you before it is incurred wherever reasonably possible.

Timescales

The time required to recover a debt depends significantly on how the debtor responds.

Where a debtor pays following receipt of a letter before action, a matter may be concluded within a few weeks.

If court proceedings are required and the debtor does not defend the claim, obtaining judgment will ordinarily take longer and will depend in part upon court processing times and the debtor's response.

If a debt becomes disputed or enforcement action is necessary, the matter may take substantially longer.

We will keep you informed of developments and advise you if circumstances arise which are likely to affect the expected timetable.

Typical Stages

A straightforward undisputed debt recovery may involve the following stages:

• taking your instructions;

• reviewing the relevant documentation;

• carrying out appropriate debtor searches;

• considering the legal basis of the debt and the amounts which may properly be claimed;

• preparing and sending a letter before action;

• dealing with any initial response from the debtor;

• receiving and remitting payment where the debt is paid;

• preparing and issuing court proceedings if payment is not received;

• applying for default judgment where the debtor does not respond;

• requesting payment following judgment; and

• advising on enforcement options if the judgment remains unpaid.

Not every matter requires every stage.

Who Will Deal With Your Matter?

Your debt recovery matter will be handled by a member of our litigation team with an appropriate level of experience and will be supervised where necessary by an experienced solicitor or partner.

Routine procedural work may be undertaken by an associate, trainee solicitor or paralegal under appropriate supervision. More complex matters, higher-value claims and matters involving substantive disputes or cross-border issues will involve a more senior lawyer where appropriate.

Details of the qualifications and experience of the lawyers in our dispute resolution team can be found on our website.

Our objective is to provide an efficient and proportionate debt recovery service while ensuring that experienced litigation support is immediately available if a straightforward recovery develops into a more complex commercial dispute.