We will act swiftly to assess the situation and liaise with you and the debtor to establish why payment has not been made, recovering monies wherever possible. Our lawyers are committed to providing a responsive service to ensure that court action is used only as a last resort.

At SME Solicitors we charge you for the time we spend working on your matter. We therefore advise you of the fee earner assigned to your matter and their hourly rate. We will review the matter at the outset and estimate the costs for you. For our Debt Recovery services, we offer fixed fees. However, in these types of cases there is always the chance that further information comes to light or external factors influence the matter - this can have an impact on how we deal with your matter. If a case becomes defended, our hourly charge rates will apply.

Jump to section

  1. Introduction
  2. Hourly Rates
  3. Charges
  4. Disbursements
  5. Insolvency Fees

Hourly Rates

The members of our team have a number of years of collective experience in delivering high quality work in all matters relating to debt recovery claims. Jack Coleman will be working on your matter. He will be supervised by David Denovan-Smith. Jack's hourly rate is £205.00 per hour + VAT at 20% (£41.00).

Charges

Process

Our Costs

Explanation

Stage 1 - The Letter Before Action

Letter before action: £50

Correspondence: £22 per 6-minute unit

5% success fee for cases settling before Court action

A Letter Before Action is a formal demand for payment and is the starting point for any debt recovery process. We will take your instructions, provide our engagement terms, provide a litigation supplement (available upon request), review the documentation, comply with the Pre-Action Protocol where necessary and send a “Letter Before Action” to the Debtor.

In certain circumstances the cost of the Letter Before Action may be recoverable from your Debtor.

Please note that if you wish to proceed with a claim then:

  • The VAT element of our fee cannot be reclaimed from your debtor if you are VAT registered.
  • Interest and compensation when added to the debt may take it into a higher banding, with a higher cost.
  • The costs quoted below do not include matters where enforcement action, such as the instruction of a bailiff, is required and/or needed to collect your debt.

Stage 2: Issuing a Claim in the County Court

Court fee:

  • £1 - £300: £35.00
  • £301 - £500: £50.00
  • £501 - £1,000: £70.00

Our Costs (£ + VAT):

  • £1 - £500: £100.00
  • £501 - £1,000: £140.00

Fixed Recoverable Costs:

  • £1 - £500: £50.00
  • £501 - £1,000: £70.00

When a claim is issued in the County Court the case will be managed according to the value of the claim, the legal complexities, the number of witnesses involved, the procedural elements that may be required to advance the case and whether a specialist Judge is required.

Stage 3: Entering Judgement

If the claim is not defended, our costs to enter judgement vary from between £44 - £140

If the debtor fails to respond to the claim within a certain timeframe or makes an admission as to the debt you may entitled to enter Judgment for the amount claimed.

Insolvency

Statutory demand: £254

Winding up petition (debt at £750+): £762

We can commence insolvency proceedings against your debtor on your behalf where it is appropriate.

Defended cases

If the claim becomes defended, the case shall be passed to our dispute resolution team, where normal hourly rates shall apply.

If the case becomes defended, and where it is appropriate to do so, the matter will be passed to a solicitor in our Litigation Department where our hourly rate charges will apply.

If the debt claimed is from an individual, then the process from receipt of instructions to receipt of payment could take between 1 to 3 months depending on whether or not it is necessary to issue a claim. This is because once an individual debtor receives a Letter Before Action, they have a period of 30 days in which to respond. For a business debtor the process may be quicker.

If the matter becomes disputed/defended or enforcement action is required, then the matter will take longer to resolve.

Process

Our Costs

Explanation

Stage 1 - The Letter Before Action

Letter before action: £50

Correspondence: £22 per 6-minute unit

10% success fee for cases settling before Court action

A Letter Before Action is a formal demand for payment and is the starting point for any debt recovery process. We will take your instructions, provide our engagement terms, provide a litigation supplement (available upon request), review the documentation, comply with the Pre-Action Protocol where necessary and send a “Letter Before Action” to the Debtor.

In certain circumstances the cost of the Letter Before Action may be recoverable from your Debtor.

Please note that if you wish to proceed with a claim then:

  • The VAT element of our fee cannot be reclaimed from your debtor if you are VAT registered.
  • Interest and compensation when added to may take the debt may take it into a higher banding, with a higher cost.
  • The costs quoted below do not include matters where enforcement action, such as the instruction of a bailiff, is required and/or needed to collect your debt.

Stage 2: Issuing a Claim in the County Court

Court fee:

  • £1,001 - £1,500: £80.00
  • £1,501 - £3,000: £115.00
  • £3,001 - £5,000: £205.00

Our Costs (£ + VAT):

  • £1,001 - £5,000: £160.00

Fixed Recoverable Costs:

  • £1,001 - £5,000: £80.00

When a claim is issued in the County Court the case will be managed according to the value of the claim, the legal complexities, the number of witnesses involved, the procedural elements that may be required to advance the case and whether a specialist Judge is required.

Stage 3: Entering Judgement

If the claim is not defended, our costs to enter judgement vary from between £44 - £140.

If the debtor fails to respond to the claim within a certain timeframe or makes an admission as to the debt you may entitled to enter Judgment for the amount claimed.

Insolvency

Statutory demand: £254

Winding up petition (debt at £750+): £762

We can commence insolvency proceedings against your debtor on your behalf where it is appropriate.

Defended cases

If the claim becomes defended, the case shall be passed to our dispute resolution team, where normal hourly rates shall apply.

If the case becomes defended, and where it is appropriate to do so, the matter will be passed to a solicitor in our Litigation Department where our hourly rate charges will apply.

If the debt claimed is from an individual, then the process from receipt of instructions to receipt of payment could take between 1 to 3 months depending on whether or not it is necessary to issue a claim. This is because once an individual debtor receives a Letter Before Action, they have a period of 30 days in which to respond. For a business debtor the process may be quicker.

If the matter becomes disputed/defended or enforcement action is required, then the matter will take longer to resolve.

Process

Our Costs

Explanation

Stage 1 - The Letter Before Action

Letter before action: £50

Correspondence: £22 per 6-minute unit

10% success fee for cases settling before Court action

A Letter Before Action is a formal demand for payment and is the starting point for any debt recovery process. We will take your instructions, provide our engagement terms, provide a litigation supplement (available upon request), review the documentation, comply with the Pre-Action Protocol where necessary and send a “Letter Before Action” to the Debtor.

In certain circumstances the cost of the Letter Before Action may be recoverable from your Debtor.

Please note that if you wish to proceed with a claim then:

  • The VAT element of our fee cannot be reclaimed from your debtor if you are VAT registered.
  • Interest and compensation when added to may take the debt may take it into a higher banding, with a higher cost.
  • The costs quoted below do not include matters where enforcement action, such as the instruction of a bailiff, is required and/or needed to collect your debt.

Stage 2: Issuing a Claim in the County Court

Court fee:

  • £5,001 - £10,000: £455.00
  • £10,001 - £25,000: 5% of the value of the claim

Our Costs (£ + VAT):

  • £5,001 - £25,000: Fees to be agreed

Fixed Recoverable Costs:

  • £5,001 - £25,000: £100.00

When a claim is issued in the County Court the case will be managed according to the value of the claim, the legal complexities, the number of witnesses involved, the procedural elements that may be required to advance the case and whether a specialist Judge is required.

Stage 3: Entering Judgement

If the claim is not defended, our costs to enter judgement vary from between £44 - £140.

If the debtor fails to respond to the claim within a certain timeframe or makes an admission as to the debt you may entitled to enter Judgment for the amount claimed.

Insolvency

Statutory demand: £254

Winding up petition (debt at £750+): £762

Bankruptcy petition - individual debtors: £508

We can commence insolvency proceedings against your debtor on your behalf where it is appropriate.

Defended cases

If the claim becomes defended, the case shall be passed to our dispute resolution team, where normal hourly rates shall apply.

If the case becomes defended, and where it is appropriate to do so, the matter will be passed to a solicitor in our Litigation Department where our hourly rate charges will apply.

If the debt claimed is from an individual, then the process from receipt of instructions to receipt of payment could take between 1 to 3 months depending on whether or not it is necessary to issue a claim. This is because once an individual debtor receives a Letter Before Action, they have a period of 30 days in which to respond. For a business debtor the process may be quicker.

If the matter becomes disputed/defended or enforcement action is required, then the matter will take longer to resolve.

Process

Our Costs

Explanation

Stage 1 - The Letter Before Action

Letter before action: £50

Correspondence: £22 per 6-minute unit

5% success fee for cases settling before Court action

A Letter Before Action is a formal demand for payment and is the starting point for any debt recovery process. We will take your instructions, provide our engagement terms, provide a litigation supplement (available upon request), review the documentation, comply with the Pre-Action Protocol where necessary and send a “Letter Before Action” to the Debtor.

In certain circumstances the cost of the Letter Before Action may be recoverable from your Debtor.

Please note that if you wish to proceed with a claim then:

  • The VAT element of our fee cannot be reclaimed from your debtor if you are VAT registered.
  • Interest and compensation when added to may take the debt may take it into a higher banding, with a higher cost.
  • The costs quoted below do not include matters where enforcement action, such as the instruction of a bailiff, is required and/or needed to collect your debt.

Stage 2: Issuing a Claim in the County Court

Court fee:

  • £25,001 - £100,000: 5% of the value of the claim

Our Costs (£ + VAT):

  • £25,001 - £100,000: Fees to be agreed

Fixed Recoverable Costs:

  • £25,001 - £100,000: £100.00

When a claim is issued in the County Court the case will be managed according to the value of the claim, the legal complexities, the number of witnesses involved, the procedural elements that may be required to advance the case and whether a specialist Judge is required.

Stage 3: Entering Judgement

If the claim is not defended, our costs to enter judgement vary from between £44 - £140.

If the debtor fails to respond to the claim within a certain timeframe or makes an admission as to the debt you may entitled to enter Judgment for the amount claimed.

Insolvency

Statutory demand: £254

Winding up petition (debt at £750+): £762

Bankruptcy petition - individual debtors: £508

We can commence insolvency proceedings against your debtor on your behalf where it is appropriate.

Defended cases

If the claim becomes defended, the case shall be passed to our dispute resolution team, where normal hourly rates shall apply.

If the case becomes defended, and where it is appropriate to do so, the matter will be passed to a solicitor in our Litigation Department where our hourly rate charges will apply.

If the debt claimed is from an individual, then the process from receipt of instructions to receipt of payment could take between 1 to 3 months depending on whether or not it is necessary to issue a claim. This is because once an individual debtor receives a Letter Before Action, they have a period of 30 days in which to respond. For a business debtor the process may be quicker.

If the matter becomes disputed/defended or enforcement action is required, then the matter will take longer to resolve.

Process

Our Costs

Explanation

Stage 1 - The Letter Before Action

Letter before action: £50

Correspondence: £22 per 6-minute unit

5% success fee for cases settling before Court action

A Letter Before Action is a formal demand for payment and is the starting point for any debt recovery process. We will take your instructions, provide our engagement terms, provide a litigation supplement (available upon request), review the documentation, comply with the Pre-Action Protocol where necessary and send a “Letter Before Action” to the Debtor.

In certain circumstances the cost of the Letter Before Action may be recoverable from your Debtor.

Please note that if you wish to proceed with a claim then:

  • The VAT element of our fee cannot be reclaimed from your debtor if you are VAT registered.
  • Interest and compensation when added to may take the debt may take it into a higher banding, with a higher cost.
  • The costs quoted below do not include matters where enforcement action, such as the instruction of a bailiff, is required and/or needed to collect your debt.

Stage 2: Issuing a Claim in the County Court

Fees to be agreed.

When a claim is issued in the County Court the case will be managed according to the value of the claim, the legal complexities, the number of witnesses involved, the procedural elements that may be required to advance the case and whether a specialist Judge is required.

Stage 3: Entering Judgement

If the claim is not defended, our costs to enter judgement vary from between £44 - £140.

If the debtor fails to respond to the claim within a certain timeframe or makes an admission as to the debt you may entitled to enter Judgment for the amount claimed.

Insolvency

Statutory demand: £254

Winding up petition (debt at £750+): £762

Bankruptcy petition - individual debtors: £508

We can commence insolvency proceedings against your debtor on your behalf where it is appropriate.

Defended cases

If the claim becomes defended, the case shall be passed to our dispute resolution team, where normal hourly rates shall apply.

If the case becomes defended, and where it is appropriate to do so, the matter will be passed to a solicitor in our Litigation Department where our hourly rate charges will apply.

If the debt claimed is from an individual, then the process from receipt of instructions to receipt of payment could take between 1 to 3 months depending on whether or not it is necessary to issue a claim. This is because once an individual debtor receives a Letter Before Action, they have a period of 30 days in which to respond. For a business debtor the process may be quicker.

If the matter becomes disputed/defended or enforcement action is required, then the matter will take longer to resolve.

For Debt Recovery Claims over £5,001 we will seek to agree a fee with you. As stated above the value of the claim can have an impact on how it is dealt with. For example, there may be more documentation to consider and further time may need to be spent on the drafting of the claim. Our costs may range from £375 – £2,000 + VAT at 20% depending on the amount claimed. In addition, specialist input may be required from a barrister.

Disbursements

Disbursements are costs related to your matter that are payable to third parties such as Court Fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.

Disbursement Cost Explanation
Barrister (Counsel) fees

Estimated between £125-£450 + VAT per hour (depending on experience of the Advocate)

Drafting documents where necessary and attending court hearings. These costs will always be discussed with you prior to being incurred.
Agent attending Court on our behalf Variable

Sometimes it may be necessary to instruct an agent to attend Court on your behalf. This may arise if the claim is to be served on the debtor by hand or if the issuing of the claim is time critical. These costs will always be discussed with you before the cost is incurred.
Travelling expenses £0.45 per mile + VAT
Train and/or parking fees may also be payable.

Enquiry/tracing agent Fixed fee, usually in the region of £100 + VAT

Disbursements may also apply in insolvency-related matters.

Insolvency Fees

We can commence insolvency proceedings against your debtor on your behalf where it is appropriate.


Our Charges**

Disbursements

Statutory Demand

£254.00 + VAT

Process server fees circa £100.00 + VAT, depending upon location

Bankruptcy petition (individual)

The debt must be over £5,000

£508.00 + VAT

Issue fee £302.00, official receivers deposit (dependent on an amount of debt) plus process server fees

Winding up petition (corporate)

The debt must be over £750.00

£762.00 + VAT

Court issue fee of £302.00, official receivers deposit (dependent on an amount of debt) plus process server fees

** This does not include any attendance at Court. Where necessary, this will be charged on an hourly rate and fee indications will be given on an individual basis. Other disbursements such as Counsel’s fees may be payable.

Statutory Demand fees are not normally recoverable from your debtor. Petition fees may be recoverable from your debtor subject to the Courts’ discretion and the debtor’s ability to pay. A statutory demand cannot be used unless there is compelling evidence that the debtor cannot pay their debts as they fall due and there is no realistic defence and/or counterclaim.

Get in touch

We’re here to help you. Our contact forms are monitored by our reception team, who will ensure that your enquiry is delivered to the right person.

For Residential Property enquiries, please request a Conveyancing Estimate.

Call us on 01905 723561  01905 723561

Email us on info@smesolicitors.co.uk  info@smesolicitors.co.uk

Find us at 8 Sansome Walk, Worcester, WR1 1LW  8 Sansome Walk, Worcester, WR1 1LW

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97% of clients would recommend us.

Serving our clients since 1840.

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