At Freeman Harris Solicitors, we offer an efficient debt recovery service in England and Wales to help clients reclaim debts up to £100,000. Our services follow a structured process with transparent fees. If a debtor disputes the claim, further costs may apply, and we will provide a detailed estimate based on the work required.
Debt Recovery Stages
- Letter of Claim
We begin by issuing a formal Letter of Claim to the debtor, following the pre-action protocol for debt claims. Our fee for this stage is £600 + VAT (£720 total). Please provide the necessary details via our form and email it to litigation@freemanharris.co.uk to initiate this step. - Debtor’s Response
- No Response: If the debtor does not respond within 30 days, you can instruct us to proceed with court action.
- Negotiation of Payment Terms: If the debtor proposes payment terms, we will communicate with you for instructions and respond accordingly. Initial response fee: £75 + VAT (£90); further responses: £75 + VAT (£90) each.
- Immediate Payment: If the debtor agrees to pay, we will confirm the arrangements. Fee: £50 + VAT (£60).
- Disputed Debt: Should the debtor dispute the debt, we will provide a cost estimate to assist you with further legal action.
- Court Proceedings
Upon your instruction, we will issue court proceedings to secure a County Court Judgment (CCJ). Fees are based on the debt amount, as shown below, with an additional court fee due.
| Debt Amount | Our Fee | Court Fee | Recoverable Legal Costs from Debtor |
|---|
| Up to £10,000 | £400 + VAT (£480) | £35-£455 | £50-£100 |
| £10,000-£100,000 | £750 + VAT (£900) | 5% of debt | Dependent on claim complexity |
- County Court Judgment (CCJ)
Once proceedings are initiated, the court will notify the debtor, who has 14 days to respond. If no defense is filed, we request a CCJ. Our fees for judgment requests range from £25 + VAT (£30) to £40 + VAT (£48), depending on debt value. - Enforcement
Following a CCJ, we can pursue various enforcement actions to recover funds, including:- Warrant of Control: Enforcement officers can collect or seize assets.
- Attachment of Earnings Order: Direct deductions from wages.
- Charging Order: Places a charge on the debtor’s property.
- Third-Party Debt Order: Freezes debtor’s bank funds. Additional fees may apply based on the chosen enforcement method.
Insolvency Proceedings (for undisputed debts)
For debts of at least £750 (corporate) or £5,000 (individuals), we can pursue insolvency actions such as statutory demands, bankruptcy petitions, or winding-up petitions.
- Statutory Demand: £1,000 + VAT (£1,200) for debts up to £50,000; £1,500 + VAT (£1,800) for debts up to £100,000.
- Winding-Up Petition: Starting at £1,250 + VAT (£1,500) with additional disbursements.
- Bankruptcy Petition: £1,250 + VAT (£1,500) with added costs for court and related fees.
Each stage is designed to maximize recovery with transparent costs at each step. Contact us today to initiate debt recovery and take the first step towards reclaiming what is owed.
