Debt Recovery Guidance & Key Stages | The International Solicitors

We are dealing with civil and business disputes and money claims for over 14 years. We work on fixed fee and hourly rate bases depending on the nature and complexity of the dispute and clients’ agreement. Our fee structure can be seen in the price list.

All commercial disputes and money claims are dealt with by experienced litigators, qualified solicitors with over 10 years PQE or partner solicitors. However, office staff helps in communications and correspondence.

Debt Recover Key Stages

After obtaining instructions, we assess clients’ objectives and agree on our costs structure, disbursements, and advising client’s about adverse costs and ATE options in the likelihood of issuance of claim. We will assists and represent from initial advice up to the settlement.

There are four key stages for debt recovery;

1. Letter before Action (LBA). LBA is a formal letter before issuance of claim in the County Court. LBA set out the basis of claim and what is owed and invite the debtor to settle the debt within a certain time period which is normally from 14 days to 30 days. LBA give an opportunity to parties to negotiate and settle the matter without further escalation. In our experience over 50% money and debt claims are resolved at this stage. Issuing Court proceedings. If there is no reply or unsatisfactory reply to LBA, then the next step is to issue proceedings with the County Court which is also called issuance of claim.
2. After issuance of claim, court will send a copy of claim to the debtor and give them 14 days to settle the debt and pay costs and interest or to inform the court if they want to defend the claim partly or wholly.
3. County Court Judgment (CCJ). County Court will give a judgement in default if the claim is undefended or after the conclusion of trial as the case may be. If debtor fails to satisfy the judgment or pay the money it will give rise to fourth and final action of debt recovery which is called enforcement action. CCJ is registered in judgment register which will affect the credit score of the judgment debtor.
4. Enforcement action is taken either through High Court Enforcement Officer or County Court Bailiffs. HCEO or CCB give an opportunity to the debtor to pay the judgment money and costs before they seize the goods or properties to recover the value of the debt.

Costs and our Fee

On civil disputes, debt recovery and money claims, we work on hourly rate basis. Our solicitors with over 10 years PQE charge £300 plus VAT @20%.

There are disbursements i.e. searching fees, court fees, Barristers and expert witnesses fee and enforcement fees plus VAT @20%. Please note that loser will pay the costs of the winner. In small claims up to £10K, only court fee and nominal costs are recoverable. Claim over £10K up to £25K, fixed fee is recoverable as set out in the table within Civil Procedure Rules. In multi tracks and high value claims, the costs are assessed by the court if not agreed.