Debts

At Brittons we are able to help with you will all debt recovery and insolvency matters and advise you on the best method of enforcement to avoid unnecessary costs and impact on your business. We pride ourselves on offering a fast and efficient business debt recovery in a transparent and professional manner.
There are three general routes of action open to you:
- Late Payment Demands – this is a letter claiming late payment interest and compensation. You can claim interest at 8% over Bank of England Base Rate and compensation of between £40-£100 for each unpaid invoice. This is a highly cost-effective way of getting a contribution to your collection costs or even covering them completely. The majority of our clients are able to recover their debts simply by having us send out a late payment demand to show that they are serious about recovering their debs.
- Statutory Demands – this can be used for debts of £750 or more. We would generally recommend sending a seven-day letter (statutory demand) demanding payment together with a draft insolvency petition to show that you are serious as a precursor to formal a formal insolvency petition. This method is particularly appropriate where you have recorded promises of payment in writing and there has been no real response from the debtor.
- Letter with draft Insolvency Petition – • it is possible to start insolvency proceedings against a company or individual who has failed to respond to a statutory demand. It is important to use insolvency proceedings only when all other avenues have been pursued as the debto’rs bank accounts will be frozen and other creditors may support the petition and take it over delaying payment to you.
If you have a debt recovery issue and would like some confidential advice from us about how best to recover what you are owed call us on 01494 730 722
Price Guide for a business to business debt that is undisputed
Court Claims
The following costs apply where your claim is in relation to an unpaid invoice which is not disputed and enforcement action is not needed. If the other party disputes your claim at any point, we will discuss any further work required and provide you with revised advice about costs if necessary, which could be on a fixed fee (e.g. if a one-off letter is required), or an hourly rate if more extensive work is needed.
Debt Value
Debt Value | Court Issue Fee | Our Fee* | Total* |
Up to £5,000 | £205 | £80 | £285 |
£5,000 – £10,000 | £455 | £100 | £555 |
£10,001-£100,000 | Court issue fee equates to 5% in value of the debt | £100 |
*All costs are subject to VAT at the prevailing rate, currently 20%
There are charges levied by us, which are non-recoverable from your debtor and are all subject to VAT as above.
Non-recoverable Charges Per Debt
Instruction Charge – £225.00
(one off set up charge and which includes the cost of your initial letter of claim charge)
Issue of proceedings- £225.00
Entry of Judgment – £225.00
Anyone wishing to proceed with a claim should note that:
- Court issue fee and our fees are recoverable, however, the VAT element of our fee cannot be reclaimed from your debtor.
- Interest and compensation may take the debt into a higher banding, with a higher cost.
- The costs quoted above are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
Our fee includes:
- Taking your instructions and reviewing documentation
- Undertaking appropriate searches
- Sending a letter before action
- Receiving payment and sending onto you, or if the debt is not paid, drafting and issuing claim
- Where no Acknowledgment of Service or Defence is received, applying to the court to enter Judgment in default
- When Judgment in default in received, write to the other side to request payment
- If payment is not received within 7 days, providing you with advice on next steps and likely costs
Matters usually take 1-26 weeks from receipt of instructions from you to receipt of payment from the other side, depending on whether or not it is necessary to issue a claim. This is on the basis that the other side pays promptly on receipt of judgment in default. If enforcement action is needed, the matter will take longer to resolve. Please bear in mind that once any court proceedings are commenced, the timescale is largely dictated by the court and not by us.