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DEBT
COLLECTION CHARGES <<back
to debt collection
Undefended
Debt Charges
1.
Letter
before action
The
letter to the debtor will give 7 days to pay. In many cases, a solicitors'
letter from us to your debtor will result in payment. In this case, the cost to
you will be £20 plus VAT + success fee as below. This fee includes a follow up
telephone call. If the matter is complicated or involves considerable paperwork,
the additional work will be charged at an hourly rate. The letter will claim
interest and statutory late payment charges where appropriate and so a large
proportion of these fees will be recovered if the debtor pays.
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The
original debt amount
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Success
Fee
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Success
fee where the debt was older than 6 months when we were instructed
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£0
- £500
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£0
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£0
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£501
- £2,000
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£40
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£45
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£2,001-
£10,000
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£80
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£100
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£10,001
to £25,000
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£125
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£150
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Over
£25,000
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£200
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£225
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The
success fee is higher on older debts because they are often more difficult to
recover.
2.
Issuing Court Action
If
no payment is received, it may be necessary to issue proceedings
in the County in order to obtain a Judgment.
The costs of issuing a court are the court fee (which
we require up front) plus our charges which are:
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Debt
Amount
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Our
Charges
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Court
Fee
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£0
- £300
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£40
plus VAT
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£30
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£301
- £500
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£40
plus VAT
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£45
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£501
- £1,000
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£70
plus VAT
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£65
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£1001
- £1,500
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£80
plus VAT
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£75
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£1,501
to £3,000
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£80
plus VAT
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£85
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£3,001
to £5,000
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£80
plus VAT
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£108
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£5,000
- £15,000
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£125
plus VAT
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£225
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£15,001
to £50,000
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£175
plus VAT
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£360
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Over
£50,000
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Contact
us for a discussion
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On
issuing court action, the court fee and fixed costs (as allowed by the court
rules) are added to the debt, and so with interest being claimed as well a large
proportion of these fees will be recovered if the debtor pays. If after the
issue of court action the debtor pays, then a success fee is charged as well.
3.
Retainers
If
you are going to provide a large number of instructions per month, we can
discuss charging a monthly retainer for all undefended work.
4.
Enforcement Charges:
If
the debtor does not pay the court judgment then it will be necessary to take
action enforce the judgment (ie collect your money). This will involve further
court fees.
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Type
of Enforcement
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Court
Fee
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Our
Charge
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Bailiff
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£35
for debt amount up to £125
£55
for debt amount above £125
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£15
plus VAT
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High
Court Enforcement Office
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£50
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£25
plus VAT
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Charging
Order
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£55
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£75
plus VAT
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Third
Party Debtor Order
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£55
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£60
plus VAT
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Attachment
of Earnings Order
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£65
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£50
plus VAT
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Order
to Attend Questioning
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£45
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£35
plus VAT
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Issuing
Statutory Demand
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£35
plus VAT
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Order
for Sale (following a charging order)
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£150
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£250.00
plus VAT
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Bankruptcy
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£190
+ Official Receiver’s deposit of £370
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£175
plus VAT
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Winding
Up Order
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£190
+ Official
Receiver’s Deposit of £620
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£250
plus VAT
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If
there is a need to instruct an agent to attend court on our behalf, their
charges will be payable in addition to the above enforcement charges. There will
be land registry fees of £48 in applying for a charging order.
As
with all disbursements, we require payment on account.
Defended
Debt Charges
Cases
that are defended will be charged at an hourly rate of £133
plus VAT. You should also note that there will be further court fees that
you will be responsible for as the case progresses to a court hearing. These
include: Allocation Fee, (Listing Fee in Fast Track and Multi Track Cases) and
Court Hearing Fees. Court fees are added to the debt amount. Where a defended
case involves attendance at a court hearing, Counsel may need to be instructed
and we require payment of these disbursements on account before the hearing.
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