These costs apply where your claim is in relation to an unpaid invoice which is not disputed where the debtor is located in England and Wales and the courts within England and Wales have jurisdiction. 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 if necessary, which could be on a fixed fee (e.g. if a one off letter is required), or an hourly rate if more extensive work is needed.

Where VAT is referred to below, please note that this will be charged at the applicable rate which is currently 20%.

Pre-action

The above fees include:

• Taking your instructions and reviewing documentation;
• Sending a letter before action; and
• If the debt is paid, receiving payment and sending it onto you.

The above fees do not include:

• Any additional correspondence or communications (either telephone or written) with the debtor or their legal representative, including negotiation of payment terms.

It may be possible to add contractual interest to the sum claimed or statutory interest, a fixed sum and costs under the Late Payment of Commercial Debts (Interest) Act 1998.

A 2 week period is given to the debtor to pay in business to business claims and 30 days is given to the debtor where they are an individual or sole trader.

Court proceedings to default Judgment stage

*Court fees correct as at 5th October 2021, any changes to the court fees are outside of our control.

The above fees include:

• Drafting and issuing claim through Money Claims Online (MCOL);
• Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgment in default;
• When Judgment in default is received, to write to the other side to request payment; and
  If the debt is paid, receiving payment and sending onto you.

The above fees do not include:

• Any correspondence or communications (either telephone or written) with the debtor, including negotiation of payment terms;
• Dealing with any response or application by the debtor to the court, either before or after Judgment;
• Attending any hearing, including relating to payment amount or terms.

Any interest and compensation claimed may take the debt into a higher banding, with a higher cost.

You will not recover every penny that you spend, there will be a short fall between the sum you can claim from the debtor and how much it costs you. In each case, the court fee will be included within the claimed sum together with fixed commencements costs (currently £50 for claims up to £500, £70 for claims between £500 and £1000, £80 for claims between £1000 and £5000 and £100 for claims over £5000) and fixed Judgment costs (£22 for claims up to £5000 or £30 for claims over £5000 if an acknowledgement of service is not filed). For example, in a claim worth £4000, you will pay £473 and the Judgment will include costs of £287 leaving a shortfall of £186.

We estimate that this section of work will take approximately 2 months.

Enforcement

In the event that the debtor does not pay the Judgment debt, one or more methods of enforcement may be used.

A Statutory Demand is strictly not a debt recovery or enforcement action but is nevertheless included here for transparency.

The above fees include:

• Making appropriate court application and dealing with court orders as appropriate;
• If the debt is paid, receiving payment and sending onto you.

The above fees do not include:

• Any correspondence or communications (either telephone or written) with the debtor, including negotiation of payment terms.
• Anything outside of the assumptions

We estimate that this work will take up to 3 months to complete.

February 2022