Fee and Service Information for Debt Recovery actions

Introduction

Thank you for considering Kitson & Trotman for your debt recovery proceedings.  Below, we set out some pricing and other information about the process for debt recovery. The information explains the relevant process and the likely timescales so you are aware of the progress of your matter.  If you have any queries, please do let us know.

This information applies to businesses with a potential debt recovery requirement of up to the value of £100,000 although we are happy to discuss your specific needs and provide a tailored work plan with cost estimate in relation to other debt recovery, such as, for example, where you or your debtor are not based in England or Wales or if the debt was transacted overseas or the debtor’s assets are held overseas or in another jurisdiction.

You are welcome to look at the Legal Choices website which aims to help consumers understand legal costs and assist them in choosing the right lawyer for their needs https://www.legalchoices.org.uk/ We hope you will choose our firm and promise you a dedicated personal and efficient service.

Our advisers

Our work is carried out by a qualified lawyer supported by trained support staff.  Please see https://kitsonandtrotman.co.uk/about-us for details of our specialist legal professionals.  Our website also has details of the other services we offer under the ‘Services’ tab’ and also our offices and contact details.

The Debt Recovery Team is led by Shan Hounsell, a Solicitor in the firm who specialises in this area as well as Dispute Resolution/Litigation.

Complaints

We want to give you the best possible service.  If, however, at any point you become unhappy or concerned about the service we have provided, please inform us immediately so that we can do our best to resolve the problem.

In the first instance it may be helpful to contact the person who is working on your case to discuss your concerns and we will do our best to resolve any issues at this stage. If you would like to make a formal complaint, then you can read our full complaints procedure by clicking this linkhttp://kitsonandtrotman.co.uk/complaints-procedure. Making a complaint will not affect how we handle your case.

We will always attempt to resolve any complaints, but where this is not possible, complaints and redress mechanisms are provided through the Solicitors Regulation Authority and the Legal Ombudsman. Details of what type is complaint each body can address and how and when to contact these bodies are given on the same link but please contact us if you would like any further help on this matter.

Key stages of the process and timescales

The precise stages involved in the debt recovery process vary according to the circumstances. Some key stages may include:

• Taking your instructions, requesting information from you and giving initial advice;
• A letter of claim will usually be issued at the outset, giving the debtor 7 days to make payment.  If the debtor is a sole trader/consumer, they will be given 30 days to respond in line with the pre-action protocol for debt claims
• Advising upon appropriate method of recovery
• If payment is not made, or settlement terms are not agreed, Court proceedings will be considered.
• A formal claim will be prepared and lodged with the Court for issue.  Debtors then have 14 days to respond to the claim, or if an acknowledgement of service is filed, a total of 28 days to file their defence.
• If there is no acknowledgement or defence in the timescales, an application for Judgment by default would be made.
• If the claim is defended and is for under £10,000, it is likely to be allocated to the small claims track and will probably be heard in about 3 to 4 months’ time.
• Claims for more than £10,000 which are defended will be allocated to the fast track or multi-track and more complex directions will be given.  It could be some months before the matter comes to trial.
• Once a Judgment is obtained, either by default, or following a hearing, enforcement proceedings will be considered. The timescale depends very much on the individual case and the suitable method of enforcement chosen for each defendant.

How much does this service cost?

There are two main elements to the cost: –

• Our fees
• Court fees

In addition, VAT may be payable on top of the fees at the relevant rate.  VAT on our fees is 20%. Rates are as at 6^thDecember 2018 and may be subject to change.

Our Fees

Hourly rates: –

Our hourly rates are: –

Solicitor – £225.00 + VAT

Trainee Solicitors/Paralegals and other fee earners – £130.00 + VAT

Fixed fees: –

We are happy to agree a fixed fee for straight forward undisputed claims once we have full details of the claim.

Court fees: –

Court fees on Issue of Claim

Please let us know if you would like any further information or wish to speak to us about your particular needs

Once a County Court Judgment is obtained against the debtor, enforcement action can be taken.

We will: –

• Advise on the most suitable method of enforcement
• Prepare Court forms and correspondence
• Report to you at each stage of the process

Court fees for enforcement 

You may consider making a company insolvent or an individual bankrupt to recover the amount outstanding.

We will: –

• Prepare the formal notice making demand of the amount outstanding (Statutory Demand)

If payment is not received: –

• Prepare the petition and lodge it with the Court
• Attend the Court Hearing on your behalf
• Correspond with all relevant parties

Court fees