Business debt recovery up to £100,000
Costs explained at the outset, with estimates reviewed as the matter progresses.
We act for businesses recovering unpaid debts. The cost depends on the value and complexity of the debt, the available documents, whether liability is disputed, the debtor's response, whether proceedings are required and whether enforcement becomes necessary.
Estimated legal fees
Undisputed debts
For a straightforward business debt that is not disputed and can be pursued through correspondence, our legal fees are generally expected to be £750–£1,500 plus VAT at 20% where applicable. A particularly straightforward matter resolved after an initial letter may cost less.
Defended debts
Where a claim is defended, an early resolution through negotiation, a without prejudice meeting or ADR may typically involve legal fees of £5,000–£12,000 plus VAT at 20% where applicable. A defended claim proceeding through trial may, as a broad guide, involve legal fees of £15,000–£35,000 plus VAT at 20% where applicable, in addition to disbursements.
Hourly rates
| Fee earner | Hourly rate |
|---|---|
| Mark Bowman | £360 plus VAT at 20% where applicable |
| Michael Abraham | £330 plus VAT at 20% where applicable |
| Assistant / Executive | £200 plus VAT at 20% where applicable |
| Trainee Solicitor / Paralegal | £160 plus VAT at 20% where applicable |
Time is normally recorded in six-minute units. Travel and waiting time is charged at a rate reduced by one third from the applicable hourly rate.
Typical stages
- Taking instructions and reviewing documents.
- Considering the legal basis and recoverability of the debt.
- Pre-action correspondence and a letter before action.
- Negotiation and consideration of any response.
- Issuing proceedings where required.
- Dealing with a defence or counterclaim.
- Directions, evidence, settlement discussions and preparation for hearing.
- Judgment and advice on enforcement.
Court issue fees
| Amount claimed | Issue fee |
|---|---|
| Up to £300 | £35 |
| £300.01–£500 | £50 |
| £500.01–£1,000 | £70 |
| £1,000.01–£1,500 | £80 |
| £1,500.01–£3,000 | £115 |
| £3,000.01–£5,000 | £205 |
| £5,000.01–£10,000 | £455 |
| £10,000.01–£100,000 | 5% of the amount claimed |
Court fees do not attract VAT. Court and third-party fees can change and will be checked before they are incurred.
Other likely disbursements
- Electronic identity/AML check: £8 plus VAT at 20% where applicable per individual.
- Land Registry office copy: £7 plus VAT at 20% where applicable.
- Other asset or tracing searches: around £130 plus VAT at 20% where applicable.
- Process server: typically £150–£250 plus VAT at 20%.
- Counsel: advice/drafting typically £1,000–£2,000 plus VAT; routine/interim hearing £1,000–£1,500 plus VAT; trial typically £1,500–£2,500 per day plus VAT.
- Expert evidence, where required: typically £1,500–£3,000 plus VAT.
- Mediator: typically £1,000–£2,000 per party plus VAT, excluding our own preparation/attendance costs.
Timescales
An initial review and letter before action will often take around 7–14 days once we have the necessary information. Pre-action correspondence may take around 2–8 weeks. An undefended court claim may often reach judgment in approximately 1–3 months, while defended proceedings can take 6–18 months or longer. These are estimates, not guarantees.
Important
You should not assume that all legal costs will be recoverable from the debtor even if the claim succeeds. We will explain the likely costs position, available funding arrangements and any enforcement costs in the circumstances of your case.
Speak to Bowman Abraham Solicitors.
Call us on 020 3732 0424 or contact us to arrange a confidential discussion.
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