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Debt Recovery

Unfortunately, unpaid debts are an ever increasing problem. Ensuring that debts are paid on time results in improved cash flow, which in turn can result in an increase in growth and the success of your business.


Debt recovery claims rely upon a contract being enforceable between two or more parties. A contract will be enforceable if:

  1. There is an agreement between the parties to the contract;
  2. Each party to the contract obtains a benefit or suffers a detriment in return for their promise within the contract; and
  3. The parties to the contract show an intention to create legal relations.

In debt recovery claims, it is entirely common for the contract to contain terms that involve one parties to the contract paying an agreed sum in exchange for the other party providing goods or services in return. Frequently, the party providing goods and services does not receive payment by the agreed date. In those circumstances the paying party is in breach of contract, and the party providing goods and services must take steps to recover the debt.

Our debt recovery team provide a business debt recovery service that is simple, effective and fast. In every case we will take time to understand your business needs, your aims and objectives and the impact each method of debt recovery may have on your commercial reputation. It is incredibly important to us that your business gets the best net return on your debt recovery services.

Legal Costs 

This section gives you more of an understanding of the fees you may be required to pay should you choose to instruct Hodgkinsons Solicitors to assist with a Debt Recovery matter of up to £100,000.00. We want to provide you with all the necessary information you need to be able to make an informed decision about who your legal representatives will be.

Our Dispute Resolution Department charge both hourly rates and fixed fees for Debt Recovery matters. Fees are dependent on the size and nature of the Debt in question. Please see the table below which sets out our fee brackets for the Debt Recovery services we provide.

 Service

 

 Type of Fee

 Fee

 Letter Before Action to Debtor

 

 Fixed Fee

 £250.00 + VAT (£50.00)

 Preparation and Service of Statutory Demand

 

 Fixed Fee

 £95.00 + VAT (£19.00)

 Instruction of Process Servers

 

 Fixed Fee

 £250.00 + VAT (£50.00)

 All work undertaken including:

 

 Setting up a file

 Initial meeting

 Subsequent meetings

 All letters

 Communications

 Review and drafting of documents

 Hourly Rate

 Angela Sparks – Solicitor – Grade B:

 

 £225.00 + VAT (£45.00)

 

 Sheree Richardson – Solicitor – Grade C

 

 £177.00 + VAT (£35.40)

 

 Gemma Middleton – Trainee Paralegal

 

 £135.00 + VAT (£27.00)

 

The above table demonstrates our standard costs however these fees are subject to change to due several reasons such as the size the debt in question. Hodgkinsons Solicitors have the right to raise additional fees in addition to your fixed legal fees should one or more of these factors come to light.

The fees described do not include the following disbursements. Disbursements are the fees that are paid to third parties such as Counsel, Court and other third parties.

 Process Servers

 

 £95.00 + VAT (£19.00)

 Counsels Fees

 

 £1,000.00 - £2,000.00 + VAT (£200.00 - £400.00)

 Court Proceedings

 

 In some cases, it may be necessary to go to Court therefore a Court fee will be payable. The Court fee is dependent on the value of the debt. This Court fee does not incur VAT.

 

 We have highlighted all the costs that are reasonably expected to be included in your quote, however there are factors which may alter the quote during the course of a transaction such as the following: 

 Court Proceedings

 

 In some cases, it may be necessary to go to Court therefore a Court fee will be payable. The Court fee is dependent on the value of the debt. This Court fee does not incur VAT.

 

 What services are included in the displayed Debt Recovery fees and how long will it take?

The process which your Solicitor will undertake when dealing with a Debt Recovery matter of up to £100,000.00 is as follows:

  1. Write to the Debtor;
  2. Identify the most appropriate method of recovery;
  3. Issue Court Proceedings or Statutory Demands;
  4. Winding up Proceedings if necessary;
  5. Enforcement of Court Proceedings if necessary.

Our Team are always happy to give timescales on the anticipated completion of your matter but will do so on a bespoke basis as each transaction can be different due to the size of the debt involved. Recovery of debt can vary, it is either straightforward or lengthy. The timescale to complete the matter depends on the way in which the defendant responds to the action taken. Completion may take between 3 – 18 months depending on whether Court proceedings are required.

If you would like more information about the experience and qualifications of our Dispute Resolution Team who will carry out your work, please visit the personal profiles of:

All work carried out by trainees or other unqualified members of staff will be supervised by a senior/qualified Lawyer. The cost for unqualified members of staff does not include the cost of the senior member of staff reviewing the work before it is completed​.

If you would like more information on the range of matters our Dispute Resolution Team can assist with visit https://www.hodgkinsons.co.uk/dispute-resolution where you can also fill out a contact form to request a member of our Department to contact you about your query. Alternatively, you can call 01754 897150 and a member of the Team will be happy to assist you. At Hodgkinsons we have the ability to advise you on your matter whether you are located in Skegness, Boston, Sleaford, Lincoln, Scunthorpe, Grimsby, rural Lincolnshire or even further afield.