Debt recovery (up to £100,000)

The costs of debt recovery can vary depending on the circumstances. If the debt is undisputed, the process is generally less expensive than if enforcement action becomes necessary.

Time Scales – Debt Recovery Matters

The timescales for debt recovery matters can vary depending on the complexity of the case, the cooperation of the parties involved, and the need for any enforcement action. However, in line with SRA guidance to provide clients with clear expectations, we offer the following general timeframe as a guide:

• Initial Instruction: Upon receiving your full instructions and relevant documentation, a caseworker will review the matter, conduct any necessary checks, and prepare an initial letter before action to be sent to the opposing party. We aim to complete this stage within 10 working days.
• Response from the Other Party: Once the initial correspondence has been sent, we usually allow the other side 30 calendar days to respond. This may vary depending on the nature of the debt and any pre-agreed extensions.
• Negotiation and Settlement: After receiving a response and further instructions from you, we aim to enter negotiations promptly. If the matter is straightforward and both parties are cooperative, a resolution or settlement may be achievable within a further 14 working days.

Please note that it is only estimated time scale for straightforward matter, however, more complex or disputed cases, or those requiring court proceedings, may take significantly longer. We will keep you informed of progress and provide updated time estimates as the case develops.

Please note that all our fees are subject to VAT at the prevailing rate, which currently is 20%.

If you are considering proceeding with a debt recovery claim, you should be aware of the following:

• The VAT element of our fees cannot be reclaimed from your debtor, even if you are successful in recovering the debt.
• Interest and statutory compensation may increase the total amount claimed, which could result in the claim falling into a higher fee band, incurring additional costs.
• The fees quoted do not include the costs of enforcement action (such as instructing a bailiff or applying for a charging order) if further steps are required to collect the debt after judgment is obtained.

We will always provide you with a clear estimate of likely costs and keep you informed throughout the process, in line with the SRA’s transparency rules.

VAT Information

VAT (Value Added Tax) is a government-imposed tax applied to most goods and services sold in the UK. Diplock Solicitors is VAT-registered in accordance with UK law, and our VAT registration number is 269979710.

If you are a VAT-registered company, you may be able to reclaim VAT paid on our services from HMRC, subject to their rules and guidelines.

The current standard rate of VAT is 20%, which applies to most professional services, including legal services, unless a reduced or zero rate applies.

Where VAT is applicable to any part of your matter—including disbursements—we will advise you in advance before confirming the fee.

Our Fee for Undisputed debts and for pre-action:

 

Debt Value	Our Fee (excl. VAT)	VAT (20%)	Total (incl. VAT)
Up to £5,000	£750	£150	£900
£5,001 – £10,000	£1000	£200	£1200
£10,001 – £100,000	£1500	£300	£1800

Our Services:

We offer a transparent, cost-effective debt recovery service for businesses and individuals seeking to recover unpaid debts of up to £100,000. Our service includes:

• Taking your initial instructions and reviewing relevant documentation.
• Carrying out any necessary background or credit checks, where applicable.
• Drafting and sending a Letter of Claim to the debtor in accordance with the Protocol for Debt Claims (where applicable).
• Receiving and processing payment from the debtor and forwarding the funds to you.
• If the debt is not paid:
  • Drafting and issuing a claim with the court.
  • Liaising with the court and monitoring the case for a response.
  • Where no Acknowledgement of Service or Defence is received, applying to the court for Judgment in Default.
• Upon receipt of Judgment:
  • Writing to the debtor to formally request payment.
• If no payment is received within 14 days:
  • Providing you with advice on the appropriate next steps, including enforcement options (e.g. instructing bailiffs, applying for a charging order), and the likely costs involved.

Please note that this fee covers undisputed debt claims only. If the claim becomes disputed or defended, we will discuss next steps with you and provide a revised estimate for continuing representation.

What Is Not Included in Our Fees?

Our fees do not include third-party disbursements, which are costs payable to others in the course of your matter. These may include, but are not limited to:

• Court fees for issuing a claim. A full list of current court fees is available on the government website: https://www.gov.uk/make-court-claim-for-money/court-fees.
• Advocacy or representation fees for court hearings. Should your case proceed to a hearing, you may need to instruct a barrister or advocate. Fees for this can typically range from £300 to £3,000 + VAT at 20%, depending on the complexity of the case, location, and the experience level of the barrister or solicitor advocate you choose.

We will always inform you in advance of any disbursements and seek your approval before incurring them. All costs will be clearly itemised and explained in accordance with our obligations under the SRA’s price transparency guidance.

Who Will Handle Your Case?

Your debt recovery matter will be handled by our dedicated Debt Recovery Team. Before booking an appointment, we encourage you to visit our Team Page to learn more about the professionals who may work on your case.

Typically, your case will be managed by:

a Solicitor or Paralegal with over 3 years of experience specialising in debt recovery.

Your work will be supervised by Mr. Muhamamd Yaqoob a Partner/Head of Civil Department] with 5 years of expertise in commercial and debt recovery matters

We ensure that all cases are handled by appropriately qualified and experienced staff, with senior oversight to maintain the highest standards of service.