Debt Collection Pricing

At CJJ Law we are able to provide competitive rates for your business debt collection requirements. When your invoices have not been paid we aim to offer you a service which meets your needs. The costs which apply to uncontested claims will depend on the value of any claim and the volume of claims you may wish us to collect for you. By way of guidance there are two stages to a claim:

  1. A pre-action protocol letter (letter before action)
  2. Commencement of court proceedings

A pre-action protocol letter requires us to set out exactly what your claim relates to and provide certain documentary evidence to support your claim. It must also invite settlement or resolution of the dispute through alternative dispute resolution such as mediation.

We offer the following rate for a one off letter. We are happy to discuss multiple claims rates.

Claims to £5,000 Claims to £10,000 Claims to £50,000 Claims above 50.000
£150.00 (plus vat) £185.00 (plus vat) £225.00 (plus vat) £250.00 (plus vat)

If proceedings are issued then there is a court fee to pay. Generally the costs you recover for us issuing your claim are fixed by the court. Depending on the type of claim you might have and the volume of claims you wish us to recover for you, then we may agree to charge no more than the fixed rate costs provided for by the court plus vat. Otherwise we will charge on a per hour basis (please see our per hour rate for our staff below) or agree a fixed rate. The table below sets out what the court fees are to issue a claim (payable in advance) and what the current fixed recoverable cost are at the time of issuing the claim and to a default judgment which are ordinarily recoverable from the defendant. Please note should you wish to proceed with a claim, then you may be entitled to interest or compensation which may increase the value of your claim and move your claim into a higher banding with higher costs.

Claim value up to Fee for postal claim Money Claim Online & County Court Business Centre Fixed recoverable costs at time of issue Fixed recoverable costs at time of default Judgment
£300 £35 £25 £50.00 £22.00
£500 £50 £35 £70.00 £22.00
£1,000 £70 £60 £70.00 £22.00
£1,500 £80 £70 £80.00 £22.00
£3,000 £115 £105 £80.00 £22.00
£5,000 £205 £185 £80.00 £22.00
£10,000 £455 £410 £100.00 £30.00
£100,000 5% 4.5% £100.00 £30.00
£200,000 5% n/a £100.00 £30.00
Over £200,000 £10,000 n/a £100.00 £30.00

If your claim is disputed by the other party at any time (pre letter before action stage or post letter before action stage but pre issue of any proceedings), we will discuss any further work required and provide you with any revised advice about costs if necessary. This could be on an agreed fixed fee basis (for example you wish to send a one off letter) or on an hourly rate if more extensive work is needed. We charge at the rate of 1/10 of an hour (6 minute units). Depending on the claim and the other party’s dispute will depend on which staff member will deal with the claim. By way of a guide our charges for our staff who are experienced in dealing with unpaid invoice claims are:

Member of staff Per hour fee range (excluding vat)

Mark Bishop – Partner and member - £200.00 to £375.00
Peter Refahi – solicitor of 6 years - £175.00 to £295.00
Joelle Bisimwa – Trainee Solicitor - £125.00 to £195.00

The above variable rates are a guide and a fixed per hour charge will be agreed with you based on the value of the claim, complexity of any claim and volume. For further information regarding the above staff then please visit “our team” page.

Whichever rate and process is agreed with you, it will include:

  • Taking your instruction
  • Reviewing relevant documentation
  • Sending a letter before action
  • Processing any payment received
  • Drafting and issuing proceedings if the debt is not paid.
  • Applying for judgment in default if no acknowledgement of service or a defence is received from your debtor
  • Upon receipt of judgment in default writing to the debtor seeking payment

The above rates do not include any costs for enforcement action such as the bailiff or other enforcement application and any and all ancillary action should further steps be need to be taken to collect your debt. We will discuss those options with you and all associated costs.

Any claim against a debtor can take time. Upon receipt of your instructions, we aim to send a letter before action within 3 working days. The time which your debtor has to reply to a letter before action depends on whether they are an individual or company. If they are an individual then generally they will have 30 days. If it is a company then they have 14 days to reply. If there is no reply to the letter before action then we aim to issue any proceedings within 7 days. It can take up to 14 days or more before the court notify us the claim has been issued and served. Once the claim has been issued and served, your debtor has 14 days in which to reply to the court indicating an intention to defend your claim or admit it. If no action is taken then you can apply to the court for judgment in default. It can take up to 14 days or more to receive back from the court a sealed judgment. If obtained, we will send the same to your debtor where they may be given 14 days to pay the judgment debt before you can take any enforcement action. If no payment is received, we will discuss the enforcement options with you. The above timelines are estimates only as the courts are exceptionally busy, matters can get delayed and it can be difficult to resolve directly with the courts. This is something beyond our control. The fact you have a judgment against your debtor does not mean you will recover the judgment debt and the judgment debtor may at any time apply to the court to set the judgment aside or pay by instalments.

There are other alternative steps you may be able to take to recover your debt such as service of a statutory demand on an individual or company leading to other insolvency steps such as bankruptcy and the winding up of a company. We are happy to discuss with you these options and agree with you a per hour charge from the rates above or a fixed fee charge if applicable.

Anyone wishing to proceed with a claim should note:

  • Interest and compensation may take the debt into a higher banding, with higher cost.
  • The VAT element of our fee cannot be reclaimed from your debtor
  • We cannot guarantee that your debtor will pay your claim and /or interest or costs in full so you may have a shortfall.

Please contact Mark Bishop should you have any further enquiries.

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