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COMMERCIAL DEBT RECOVERY SERVICES

Tonner Johns Ratti Solicitors provides commercial debt recovery services to businesses seeking to recover debts of up to £100,000. Our Litigation Team offers practical, commercially focused advice aimed at achieving recovery as quickly and cost-effectively as possible. The information below is intended to provide businesses with clear and transparent information regarding our debt recovery services, likely costs, key stages and timescales.

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Key Stages of a Commercial Debt Recovery Matter

The stages involved will depend on the circumstances of each case and whether the debt is disputed. A typical debt recovery matter may involve some or all of the following stages:

  1. Letter Before Action.
  2. Negotiations with the debtor.
  3. Pre-issue Assessment of the Claim
  4. Court Proceedings.
  5. Enforcement Action (where required).

WHO WILL CARRY OUT THE WORK?

Your matter will be handled by a member of our Litigation Team.

Work may be carried out by Stuart Ratti, Jemma Merrell or Angharad Thomas.


The solicitor dealing with your matter will be determined by the complexity of the case and level of expertise required. Hourly rates are charged in accordance with the experience, qualifications and seniority of the fee earner dealing with your matter. Details of applicable hourly rates and an estimate of the likely cost will be provided at the outset of your matter.  We will keep you informed of any significant changes throughout the course of your instruction.


Where appropriate, we may advise that counsel be instructed to provide specialist advice and/or representation at court hearings. Counsel will provide a quotation or fee estimate reflecting the work required. VAT may be charged in addition to counsel’s fees if they are registered for VAT.

EXPERIENCE AND QUALIFICATIONS

Our Litigation Team advises on commercial debt recovery, contractual disputes, commercial litigation, enforcement of judgments, insolvency-related recovery action, settlement negotiations and alternative dispute resolution.

COMMERCIAL DEBT RECOVERY STAGES AND PRICING STRUCTURE

LETTER BEFORE ACTION

Fixed fee: £350 + VAT.


Bespoke quotation additional debtors. 

Includes taking instructions, reviewing basic information relating to the debt such as unpaid invoices, account statements, key contractual documents and correspondence, drafting and sending a Letter Before Action, reviewing responses and calculating interest and compensation.


Typical timescale: 2-5 weeks. Possible disbursements include bankruptcy and tracing searches.


This fixed-fee service is intended for straightforward undisputed debts where only a review of basic information is required. If the matter involves extensive documentation, complex contractual arrangements, disputed liability, or detailed evidential review, additional charges may apply and we will discuss these with you before any further work is undertaken.


POST-LETTER BEFORE ACTION NEGOTIATIONS

£600 to £3,000 plus VAT.


Includes reviewing the debtor response, advising on disputes, corresponding with the debtor, negotiating settlements and advising on next steps.


Typical timescale: 4-8 weeks.

PRE-ISSUE ASSESSMENT OF THE CLAIM

£600 to £2,500 plus VAT.


Includes reviewing evidence and documentation, assessing merits, advising on prospects of success, litigation risks, recoverability, enforcement options and litigation strategy. 


Possible disbursements include Land Registry searches, bankruptcy searches and asset reports. 


Typical timescale: 1-4 weeks.


At this stage, we may undertake searches at HM Land Registry and Bankruptcy Searches. The cost of which is likely to be in the region of £10-£50. There is no VAT applicable. 

COURT PROCEEDINGS FOR UNDISPUTED DEBTS

Fees plus VAT: 


  • Up to £5,000 debt: £750-£1,500
  • £5,001-£10,000: £1,500-£2,500
  •  £10,001-£25,000: £2,500-£4,500
  •  £25,001-£50,000: £4,500-£7,500
  • £50,001-£100,000: £7,500-£12,500

Court fees and disbursements are payable in addition.


Includes:

  • Reviewing the documentation and information required to prepare the claim.
  • Drafting and issuing court proceedings.
  • Preparing and filing the required court documents.
  • Corresponding with the court and the debtor (or their representatives).
  • Monitoring procedural deadlines.
  • Applying for default judgment where the debtor fails to acknowledge service or file a Defence.
  • Advising on the judgment obtained and the options available for recovery.

Typical timescale: If judgment is obtained by default, matters typically conclude within 2-4 months.

Court Fees

ENFORCEMENT ACTION

If judgment is obtained but remains unpaid, further enforcement action may be required, including enforcement by High Court Enforcement Officers, charging orders, attachment of earnings or insolvency proceedings. Further estimates will be provided before work is undertaken.

DEFENDED CLAIMS

The above estimates assume that matters remain substantially undisputed. If a Defence, Counterclaim or complex legal issue arises, additional work will be required, and a separate costs estimate will be provided.

VAT AND DISBURSEMENTS

VAT is charged at the prevailing rate, which is currently 20%, on our fees unless otherwise stated. Disbursements may include court fees, search fees, process server fees, barristers fees and enforcement costs.

IMPORTANT DISCLAIMER

All costs are estimates only and may vary depending on complexity, documentation, conduct of the debtor and whether the matter becomes contested. A tailored estimate will be provided at the outset of each instruction.

SERVICES NOT INCLUDED

Unless specifically stated, the above fees do not include:

  • Court fees and other disbursements.
  • Barristers' fees.
  • Process server fees.
  • Enforcement action following judgment.
  • Insolvency proceedings.
  • Defended or contested claims.
  • Counterclaims.
  • Extensive review of complex documentation.
  • Tracing or asset investigation services.