Debt Claims up to £100,000

Introduction

We have set out below the issues you need to consider in relation to Legal Fees and disbursements. Our Legal Fees cover all of the work required to handle your case from instruction to conclusion.

The price information provided here is a guide price only and is not necessarily a binding quote for your individual matter. The fee estimate tailored to your matter will be provided upon your instructions.

Legal Fees

Legal Fees are the amount you will be required to pay for all the work performed by us in actioning your instructions from commencement of your case to conclusion. VAT will be payable on our fees and some disbursements, currently 20% and we will clearly confirm which disbursements carry VAT in our formal quotation or as we advise you to incur them.

These costs apply where your claim is for a value of no more than £100,000.00 and where your claim is in relation to an unpaid invoice which is not disputed, and enforcement action is not needed. 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.

We charge our standard hourly rates for providing advice and representation in relation to an unpaid invoice. Our standard hourly rates are as below:

Status	Hourly Rate
Directors, Solicitors, Legal Executives & other fee earners with over eight years’ post-qualification experience including at least eight years’ litigation experience	301 Plus VAT
Solicitors/Legal Executives & other fee earners with 4 years’ experience	247 Plus VAT
Other Solicitors/Legal Executives & fee earners	197 Plus VAT
Other fee earners & Paralegals	138 Plus VAT

Our estimated fees based on the above standard hourly rates for pursuing a debt claim up to £100,000 range from £4,000 to £25,000 plus VAT. (£4,800 – £30,000 inc. VAT) depending on the complexity of the matter and the hours of work on the particular matter.

We will charge the sum of £35 + VAT (£42 inc. VAT) for Electronic money transfers.

If your matter becomes complex (see below) our fees may increase further and we will notify you in advance of any increased costs.

Anyone wishing to proceed with a claim should note that:

•    The VAT element of our fee cannot be reclaimed from your debtor.
•    Interest and compensation may take the debt into a higher banding, with a higher cost.
•    The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
•    Where you are claiming up to £10,000.00 the general rule is that win or  lose each party pays their own fees.

If at any stage our fees change, we will notify you and discuss the reason for any changes. This would typically occur if you change your instructions or your case involves an unforeseen complexity.

Our average fees assume that:

•    The transaction is concluded in a timely manner and no unforeseen complication arise.
•    All parties to the transaction are co-operative and there is no unreasonable delay from any parties providing documentation.

 

Stages of the Process – our fees include:

The precise stages involved Irrespective of the value of the debt, the works set out below will need to be undertaken. We have set out the key stages of a standard transaction:

•    Taking your initial instructions, reviewing the papers and advising you on merits (this is likely to be revisited throughout the matter and subject to change)
•    Undertaking regulatory checks
•    Formal letter before action to the debtor
•    Liaising with debtor to agree a settlement
•    Issuing a claim form via the Courts where settlement has not been achieved.
•    Liaising and negotiating with the debtor or their Solicitor to agree a settlement where possible.
•    Dealing with the legal process such as direction from the court
•    Preparing or considering a schedule of loss
•    Exchanging documents with the other party and agreeing a bundle of documents
•    Taking witness statements, drafting statements and agreeing their content with witnesses
•    Preparing bundle of documents
•    Reviewing and advising on the other party's witness statements
•    Agreeing a list of issues, a chronology and/or cast list
•    Preparation at Final Hearing, including instructions to Counsel (1 day hearing)
•    Reporting to you on the conclusion of the matter and closing your file.

The stages set out above are an indication and if some of stages above are not required, your legal fee may be reduced.

Please note that the fee estimates provided do not include defending a counterclaim from the debtor, the cost of attendance at a final hearing by us or a Barrister instructed to represent you.

Disbursements and Other Costs

Disbursements may be incurred in the handling of the matter for you. In Debt Claims, fees tend to relate to Counsels’ fees and Court Fees. This is not  included in our hourly or agreed fixed fees. We handle the payment of the disbursements on your behalf to ensure a smoother process. VAT will be payable on some disbursements, currently 20% and we will clearly confirm which disbursements carry VAT in our formal quotation or as we advise you to incur them.

The disbursements for debt recovery matters may include:

•    Counsel’s (Barrister) fees: £1000 – £4000 plus VAT (£1,200 – £4,800 Inc. VAT) depending on the seniority of the barrister and complexity of the matter. If you want a very experienced barrister, then the cost is likely to be more. You may also incur additional charges such as travel costs for us to attend meetings and hearings.
•    Courts Fees : The following link sets out the current court fees  https://www.gov.uk/make-court-claim-for-money/court-fees. These are only necessary where we are required to issue a claim form via the court.

How long will my claim take?

Matters usually take 4-12 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of Judgement in default. If enforcement action is needed, the matter will take longer to resolve. If the matter is defended then you will enter litigation through the court system and a time frame of 30 to 52 weeks for a resolution.

This is just an estimate and we will of course be able to give you a more accurate timescale once we have more information and as the matter  progresses.

Factors That Could Make A Case More Complex 

The following factors may make your case more complex and impact on your legal fees and disbursements: –

•    The matter is defended
•    Judgement is obtained and needs to be enforced for example
•    Instruction of a Bailiff
•    Attachment to earnings
•    Making or defending a costs application

Should any of these factors occur we will notify you and discuss with you any increase in our legal fees or disbursements.

Alternative Funding Options CFA/DBA

In some cases, we may consider providing a Conditional Fee Agreement (CFA) or a Damages-Based Agreement (DBA) as a funding option. However, before we can offer either of these arrangements, we will need to assess the viability of your claim by conducting a risk assessment. The duration of the assessment process will depend on the amount of documentation that needs to be reviewed. Typically, it takes between 2 to 3 hours and will cost between £414.00 and £903.00 plus VAT (£496.80 – £1083.60 Inc. VAT) based on the fee earner who handles the assessment.
If a CFA or DBA is offered, you will be responsible for all disbursements, which may include court, barrister, and search fees. If you win your case, you will also be liable for the success fee, which will either be a percentage of the costs incurred or a percentage of your damages, depending on the funding
arrangement offered. Until we understand the nature of your case we are unable to assess the level of deduction, but we can reassure you that under our CFA or DBA, your contribution to our legal fees will never be more than 25% of your compensation.
Please note that we are not obligated to offer a CFA or DBA and will only do so if we believe your claim has sufficient prospects of success.

Fee Earners

We have several members of the team who may work on your matter.  Regardless of who works on your matter, they will be supervised by Saad Balouch, Director / Solicitor and Head of Public Law and Litigation. You can view information about our team members here: https://clydesolicitors.co.uk/our-team/

Questions

If you have any questions relating to our services and our fees, please contact us by calling 0203 5000913 or email info@clydesolicitors.co.uk