Undisputed business debt claims
The table below is intended to assist small businesses as a guide to the likely legal costs involved in pursuing an unpaid business debt. The table of costs applies:
- To business to business debts (i.e. not to debts owed by private individuals or sole traders because different procedures and time scales apply as to which please click here to see the prescribed Protocol)
- Where the debt is not in dispute.
| Debt Value | Court Fee | Our Fee | VAT | Total |
| Up to £5,000 | £25 - £185 | £400 | £80 | £505 - £665 |
| £5,001 - £10,000 | £410 | £490 | £98 | £998 |
| £10,001 - £100,000 | 4.5% of the value of
the debt claim (e.g.
for a claim worth
£30,000, the court
fee is £1,350 | From £500 - £4,500 | £100 - £900 | Dependant on the
Court fee payable |
Please note the following:
- If claiming interest in addition to the debt this may take the claim into a higher banding with higher court fees and costs.
- Usually, only the court fee and nominal fixed costs can be claimed against the debtor as part of the judgment debt.
Our fees include:
- Taking your instructions;
- Preparing and sending a formal Letter of Claim to the debtor
- Receiving payment and accounting to you; alternatively, if the debt is not paid, drafting and issuing the claim form at court.
- Applying for judgment in default of Acknowledgement of Service or Defence.
MONEY TRANSFER FEES
For sending money by Telegraphic Transfer £40.00
For sending money by Faster Payment £10.00
For sending money by BACS No charge
ELECTRONIC IDENTITY VERIFICATION
Individual £10.00
International individual £15.00
Company £25.00
International company - price on request (location dependent)
All prices +VAT
If the debtor disputes the whole or any part of your claim, we shall advise you as to any further steps that you should take and we will provide you with a further costs estimate calculated by reference to the hourly rate of the member of our team dealing with your matter.
Timescales
We would usually expect to send the formal Letter of Claim to the debtor within - 2/3 working days of your instructions. The Letter of Claim would allow the debtor 5 - 7 days to make payment in full. If payment is not made, we would issue the court claim on your behalf usually within two working days of your instructions to proceed and payment to us of the court fee. The debtor is allowed 14 days from the deemed date of service by the court of the claim form in which to file an Acknowledgement of Service in default of which we would enter judgment against the debtor. If the debtor files an Acknowledgment of Service but does not file a Defence within 14 days thereafter (i.e. 28 days from the deemed date of service), we would enter judgment in default of Defence.
If the debtor does not satisfy the judgment, we can advise you on the best method of enforcement e.g. bailiffs, to collect the debt. We shall provide you with an estimate of the enforcement costs at that stage.