Whether you have a number of highly complex value matters or a one-off straight forward debt claim, we can assist you in recovering your businesses debts and, thereby, aiding your cash-flow.
A GUIDE TO PRH IMMIGRATION SERVICES & FEES FROM DECEMBER 2018:
Debt Collection
There is a voluntary code of practice in the UK which recommends that businesses pay outstanding bills within 30 days.
Although it is estimated by the Federation of Small Businesses that 50,000 businesses go bankrupt every year because of late payment, most businesses have not signed up and, therefore, do not follow the voluntary code.
It is essential for all businesses to manage their debt, and our experience is that the sooner a debt is chased, the better the chance of it being successfully collected.
A well-written solicitor’s letter, advising the debtor that action will be taken, if the debt is not paid, succinctly informs the debtor that the debt is being seriously managed and, therefore, payment should be made.
Extra charges can be levied on a debtor because of their failure to pay the debt in good time and, further, debtors need to be reminded that, if formal enforcement action is taken against them, their credit rating, or that of their business, may be affected.
In order to enable a business or individual instructing us to budget for the cost of debt collection. We will undertake recovery work for an agreed fixed fee for all debts up to £15,000.00*.
1. Initial meeting: collecting and collating all information and sending a detailed letter of advice to the business or individual, and a fully compliant Letter before Action to the debtor, particularising the claim and advising the consequences of payment not being made, and thereafter recovering and passing on payment.
We would aim to send the letter before action as soon as possible after the meeting and, in any event, within 5 working days.
Our Fees: £125.00 plus VAT (£150.00)
2. The County Court route:
Issuing County Court proceedings.
Our Fees: Between £150.00 and £250.00 plus VAT (£180.00 and £300.00)
A fee must also be paid to the Court for issuing proceedings, and how much this is depends on the amount of the debt being pursued.
3. Obtaining a County Court Judgment:
If there is no response from the debtor, a County Court Judgment can be entered:
Our Fees: Between £25.00 and £75.00 plus VAT (£30.00 and £90.00)
4. If the debt is denied, and the matter goes to Trial, we will prepare and represent the debtor for a pre agreed fixed fee. The fee will be agreed after discussion regarding what evidence should be presented to the Court and how.
The fee will be based on an hourly rate of £175.00 plus VAT (£210.00).
5. Enforcement of the County Court Judgment:
There are various enforcements, depending on the circumstances of the debtor. Again, we will act on a fixed fee.
Our Fees: Charging Order: £300.00 plus VAT (£360.00)
Attachment of Earnings: £300.00 plus VAT (£360.00)
Party Debt Order: £350.00 plus VAT (£420.00)
High Court Enforcement: £200.00 plus VAT (£240.00)
County Court Bailiff: £100.00 plus VAT (£120.00)
Information Order: £300.00 plus VAT (£360.00)
Please note that all the above also attract Court fees of between £55.00 and £110.00. There is no VAT on Court fees.
6. Alternative routes to issuing County Court proceedings:
- Insolvency route (for any debt over £750.00).
- Winding up Petition/Statutory Demand.
The fee will be based on an hourly rate of £175.00 plus VAT (£210.00).
Additional Information
Anyone wishing to proceed with a claim should be aware that the VAT element of the solicitors’ fees cannot be reclaimed from the debtor.
*We are able to offer alternative fee structure dependent upon the particular circumstances of the client and the matter, for example if we are undertaking a significant amount of debt collection for one client, we may agree a different fee.
For further information please call us on 01709 511100
Senior & Managing Partner
Contact
Direct Dial: 01709 511100
fionashinner@prhsolicitors.co.uk
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Fiona is a specialist in dispute resolution and her areas of expertise include:-
- Contractual disputes
- Employment problems, including Settlement Agreements
- Land issues, including boundary disputes
- Professional negligence claims
- Pursuing debtors
- Acting as a trustee of Attorney
Bio:
Fiona was admitted to the Roll of Solicitors in 1993 after a short career in education, teaching law and liberal studies.
Client Testimonials:
“In difficult times Fiona Always pulled through.”
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