Debt Recovery
Recognised as a leader in this area by the Legal 500, Fosters has a specialist team dedicated to Debt Recovery.
Led by Gillian Scott, who has worked in the legal profession continuously since 1975, and joined Fosters at the end of 2005 to lead the Debt Recovery and enforcement team. She brings 25 years' experience of this particular area of work and has been consistently recognised as a leader in her field by the Legal 500.
Fosters specialise in commercial recoveries throughout England and Wales, together with cross-border enforcement. We will either use the client's own contractual terms or the remedies available under the Late Payment of Commercial Debts (Interest) Act 1998 to maximise the recovery of interest and collection costs for clients and will consider with them the options of:
- bringing a claim in the County Court or High Court;
- serving Statutory Demands under the Insolvency Act 1986 or the presentation of Bankruptcy or Liquidation Petitions;
- giving thought to the circumstances of each and every debtor on a case by case basis and making enquiries where necessary;
- tracing absconded debtors;
- using High Court Enforcement Officers effectively;
- advising upon alternative methods of enforcement if appropriate.
We offer a pay as you go service so you are always in control of costs. The interest, fixed costs and collection costs can mean that clients recover enough to cover their costs. Experience tells us that the sooner you act by pursuing the outstanding debt, the better your chance of recovering full payment.
Frequently Asked Questions
- Can I claim interest?
Yes, if you make a claim under the Late Payment Acts or you have contractual terms that provide for the payment of interest. The £40 plus VAT charge includes our time for calculating interest for you. If you issue Court proceedings you can claim Statutory Interest at 8% which is added to the debt.
- How much will it cost if we have to issue proceedings?
It usually costs between £175 and £300 plus VAT for our time dealing with the Court proceedings and the entry of default Judgment. There is also a Court fee payable when you issue the proceedings.
- How much are the Court fees?
A list of the issue fees and certain other Court fees payable when enforcing a Judgment are listed in the following schedule:
The Court fees to issue proceedings are:-
- £30.00 for claims up to £300;
- £45.00 for claims between £300.01 and £500;
- £65.00 for claims between £500.01 and £1,000;
- £75.00 for claims between £1,000.01 and £1,500;
- £85.00 for claims between £1,500.01 and £3,000;
- £108.00 for claims between £3,000.01 and £5,000;
- £225.00 for claims between £5,000.01 and £15,000;
- £360.00 for claims between £15,000.01 and £50,000;
- £630.00 for claims between £50,000.01 and £100,000.
These fees continue to increase for claims above £100,000 up to £300,000, above which the Court issue fee is £1,530, but we hope the people who owe you the money do not owe you as much as that!
There is no Court fee payable upon a request for Judgment.
The fees for enforcement are:-
- High Court Execution:- £50.00 Court fee for against debtors goods by High Court Enforcement Officers if the Judgment debt exceeds £600 and is not a Consumer Credit Act claim; £60.00 plus VAT High Court Enforcement Officers abortive execution fees if they fail to recover payment of their Warrant, but if they are successful they will collect their full fees and poundage from the debtor;
- County Court Execution:- £100.00 Court fee for Warrant of Execution to County Court Bailiffs for Judgment debts below £600;
- Charging Order:- £100.00 Court fee for Charging Order application; £50.00 Land Registry fee to register Interim Charging Order;
- Third Party Debt application/Garnishee:- £100.00 Court fee for Third Party Debt application;
- Attachment of Earnings:- £100.00 Court fee for Attachment of Earnings application;
- Order to Obtain Information/Oral Examination:- £50.00 Court fee; £100.00 for County Court Bailiffs to serve Notices of Hearing upon debtor (per hearing) or £70.00 plus VAT for enquiry agents to serve Notices of Hearing upon debtor (per attendance at debtors property)
- Bankruptcy of an individual:- £70.00 plus VAT for enquiry agents to personally serve 21 day Statutory Demand; £790.00 Court fee for Bankruptcy Petition to include Official Receiver’s deposit of £600; £70.00 plus VAT for enquiry agents to personally serve Bankruptcy Petition; PLUS barristers or agents fees to attend hearing of Petition if not in Norwich.
- Winding-Up/liquidation of a limited company:- £70.00 plus VAT for enquiry agents to personally serve 21 day Statutory Demand (if needed); £1,190.00 Court fee for Bankruptcy Petition to include Official Receiver’s deposit of £1,000; £70.00 plus VAT for enquiry agents to personally serve Bankruptcy Petition; £75.00 for advertisement in London Gazette (per hearing, per advert); PLUS barristers or agents fees to attend hearing of Petition if not in Norwich.
- What about liquidation or bankruptcy as a way of recovering the debt?
The threat of insolvency can be a potent means of forcing payment. Each case is different but we will review it with you and advise whether it is the best way forward for you. You can serve a Statutory Demand under the Insolvency Act 1986 whether the debtor is a company, sole trader or partnership before you petition the Court for a Winding Up Order (if a company) or a Bankruptcy Order (if an individual).
- Am I able to recover my legal costs?
The Court allow you to recover some fixed costs from the debtor for issuing the proceedings, on entering Judgment and on enforcement but it is important to stress that not all of your legal costs will be payable by the debtor. The interest you recover will cover any shortfall and if you make a claim under the Late Payment Acts you can currently recover some limited compensation as well.
The Debt Recovery Team
Solicitor
Debt Recovery