Debt Collection
(up to the value of £100,000)
Debt Collection
We can represent you in your debt collection matter on a Fixed fee basis and hourly rates option with flexible payments, depending upon a clients need and debt.
Where we agree a fixed fee with you from the outset of the case, you will know how much your case will cost exactly. The Fixed Fee agreed will depend on:
1. The complexity of the case
2. The amount of supporting evidence that we need to considerThe estimates described below represent the range of the fees for most standard applications. Upon our initial assessment of your situation, we may agree on a fixed fee.
If a fixed fee is agreed upon and your matter or transaction does not reach a conclusion or you decide to withdraw instructions, we reserve the right to charge for the work done on your case using our hourly charging basis.
Our charges do not include VAT, which we will add to your bill at the prevailing rate of 20%.
Our Fixed fee for legal cases covers all the work written and oral work for the stage of the legal matter for which you have instructed us.
Please be advised that our fees do not cover the third-party disbursement charges e.g. bailiff cost.
Some disbursements noted below attract VAT. VAT on a Disbursement is charged at 20%, unless otherwise noted below.
All our Debt Recovery work is carried out by Sunny Patel and Manik Miah who are both Solicitors & Directors at Crystal Law Solicitors.
Nicola Plumb, Laura Edington and Zainab Girach support the department with Paralegal and Administration duties.
Client Disbursements
Disbursements are costs related to your matter that are payable to third parties, such as Court Fees, Interpreters, Independent reports and not included in our fixed fee prices. We will however handle the payments of the disbursements on your behalf to ensure a smoother process. You will be notified of the Disbursement amount well in advance and your agreement will be sought before these disbursements are incurred.
Court Fees may be applicable depending on your case. Where case fees are requiring the amount, you will be informed in advance. Court Fees are likely to range from £35 - £10,000. VAT if not payable on Court Fees.
Counsel fees will be agreed with you in advance before counsel is instructed on your behalf. Costs for the barristers are likely to be in the range of £700 - £2,500 plus VAT if payable.
Independent expert reports e.g. medical experts are not required in many cases: we will let you know as soon as possible if we consider an expert report is necessary in your case and the disbursement to be incurred will be agreed with you in advance of us instructing expert on your behalf.
Independent expert reports will be agreed with you in advance before instructed on your behalf. Costs for the Independent expert reports are likely to be in the range of £700 - £2,500 plus VAT if payable chargeable at 20%.
Electronic money transfer fee is charged at £40, plus VAT which is charged at 20%.
£3-£6 Land Registry Office Copies £3-6.; or, between £20.00 and £910.00 to register the transfer depending on property value and whether the property is registered (VAT not applicable).
Other Searches may include geographically specific or property specifics searches, such as evidence of historic mining for coal, limestone and tin. The list and costs will be dependent on the transaction, plus VAT chargeable at 20%.
The number of hours needed for interpreters will vary on the complexities of the case and the number of words when documents are translated. Often clients will bring a friend or another community figure to assist with interpreting. Clients do not always have to use an interpreter of our choosing when providing us with instructions.
Interpreters’ fees from £25-£40 per hour excluding VAT which is charged at 20%. Most kinds of applications will normally require between 2 - 10 hours of client contact with an interpreter, depending on the complexity of your case.
For Document translation, the fees range from £95 - £120 (per 1000 words) excluding VAT which is charged at 20%.
If there is an interview and we do attend with you, there will be additional disbursements in respect of our mileage/travel expenses.
For one off instructions on individual debts, work will generally be charged on an hourly rate basis. Our Solicitors hourly rate is £250 plus VAT at 20%.
We offer Fixed Fees for client outside (one of instructions) for debt below £25,000. Our Fixed Fees range from £150-3,000, plus VAT at 20%, depending on complexity and value of debt matter.
Debt recovery matters usually involve sending letters, emails and making calls to a debtor with the threat of court action, if payment is not made. Where court action is necessary, this involves issuing a claim at court.
Anyone wishing to proceed with a claim should note that:
- Where a debt is paid before proceedings are issued, usually no costs can be reclaimed from the debtor. Court fees do not attract VAT.
- Where a claim is issued at court, court issue fees will be payable. Details of the fees can be found here. Court Fees do not attract VAT.
- When a claim is issued in court and not defended, only court issue fees and court prescribed fixed costs can be reclaimed from the debtor. Details of the court prescribed fixed costs can be found here. Prescribed fixed costs do not attract VAT.
- Interest and compensation may take the debt into a higher banding, with a higher cost.
- Where enforcement action needs to be taken, when a court judgment is not paid, costs will be quoted separately for any enforcement action and not part of a fixed fee. Costs can vary from £100-300 plus VAT, charged at 20%.
- Where a debt claim is defended, further expenditure may be required on court fees and other experts’ fees, such as a barrister or professional expert, to deal with compliance with court directions, such as disclosure, witness evidence and trial. The extent of this additional expenditure will depend on a number of factors including the value and complexity of the debt and not part of the Fixed fee. Court fees do not attract VAT but barristers and expert’s fees can do. Client's will be informed accordingly.
- VAT element of our fee cannot be reclaimed from the debtor.
Where a debt is not contested, generally we will carry out the following steps:
- Taking instructions and reviewing documentation
- Undertaking appropriate searches, which might include credit searches of the debtor, asset searches and so on
- Sending a letter before action
- Collecting payment and sending it onto you
- Drafting and issuing a claim
- Applying to the court for default judgment where a claim is not responded to
- Where a default judgment is obtained, writing to the debtor to request payment.
- If payment is not made advising you of the next steps
Where a debt is disputed at any point, we will discuss with you any further work required and provide information about costs, timescales and what the next steps should be on a case by case basis.
Where a debt remains unpaid after a county court judgment has been obtained, enforcement action may be necessary, such as instructing a bailiff, high court enforcement officer, obtaining a charging order and so on.
We aim to deal with all debt recovery instructions promptly and a client should expect Pre-Action steps (the steps taken before a claim is issued in court) to be concluded within two – twelve weeks from the initial instruction being provided to us. If, after the pre-action stage, the debt has not been recovered you may need to take court action. If court action is needed matters will take longer to be concluded. We will notify you with estimated timescales on a case-by-case basis.
If a debtor pays promptly upon receipt of a letter of claim, issuing a claim or following a judgment in default, then on average this type of work can take anything between three to fifteen hours to complete.
The exact number of hours it will take to deal with the recovery of a debt from start to finish depends on factors such as:
- Whether the debtor wants to pay
- Whether the debtor can pay
- Whether court proceedings and enforcement are necessary
- The complexity of the issues
Ultimately a disputed debt claim of a higher value (in excess of £25,000) and with more complex issues could incur legal costs in excess of £30,000 plus VAT at 20% should the claim proceed to a fully contested trial.
Charges will be less if a debtor is able and willing to pay a debt or if payment or a settlement is reached before a fully contested trial.