Debt Recovery and Insolvency

The problems you may be facing

To help your business remain financially healthy and maintain its cash flow, it sometimes becomes necessary to recover what is owed to you by a debtor through formal court proceedings. Otherwise you can find that your own business can fall into difficulties of its own through others defaulting on their payments.

If you are worried that your business is being adversely affected by either extremely late or non-payers in particular, please get in touch and we can advise on the best method we feel will help you obtain what is owed to you.

How we can help

RHF Solicitors provide an efficient and cost-effective debt recovery service nationwide, and have considerable experience with organisations and companies of all sizes. This may take various forms: from a planned series of debt recovery communications right up to the issue of formal insolvency proceedings.

We will quickly gain an understanding of your business and your debtor(s) and suggest the most appropriate way of recovering monies owed. You may have to start court proceedings, and following a successful outcome, enforce any judgment in your favour and as a last resort, start insolvency proceedings.

Whatever the course of action, we will discuss with you the best method of recovering the debts owed to you based on their years of experience. We will be with you all the way, and you will have full access to an experienced legal team.

Costs

Like many firms of solicitors we routinely charge by way of an hourly rate.  That rate will depend on the experience of the person dealing with your matter as well as its complexity.  The rates range from £125 per hour plus VAT for a paralegal to £300 per hour plus VAT for a senior solicitor.  These rates are charged in the event that a particular matter becomes more complicated than those set out below and vary from case to case. We will keep you informed every step of the way.

Disbursements

These are fees which need to be paid to third parties, such as the court, the land registry or an agent to deliver documents.  The payments made to the court or land registry do not attract VAT, and those made to agents may or may not be liable for VAT depending on the particular agent.

Fixed fees for routine matters:

Letter of Claim:
£200 + VAT

Issuing a County Court claim: 
£600 including £100 at 20% Vat.
The fees paid to the court for issuing a claim are on a sliding scale and depend upon the amount of money you are claim. (You can download the detailed document from UK Government here)”

Entering judgment at Court:      
Up to £10,000 - £50 + VAT
Over £10,000 - £75 + VAT

If after entering judgment there is still no payment, the charges for enforcement of the judgment are as follows:

Warrant of Execution:
This is where we instruct a bailiff to attend the debtor and seek to recover goods to sell in order pay the judgment debt - £100 +VAT

Attachment of Earnings:
As the name suggests this is an application to the court for the debtor to make payments to satisfy the debt from their income - £125 +VAT

Third Party Debt Order:
This is where we seek to recover money due to the debtor from someone else.  If the debtor has sold their house or car, we can apply to court for an order that the purchaser pay you instead of the debtor. - £250 +VAT

Charging Order over property:
This is where a charge is placed over a property which the debtor owns or in which he has an interest. It is possible to seek an order for sale of the property once that charge is registered.
£500 + VAT

In addition to the court fee (listed below) it is necessary to have papers delivered by hand to the debtor, and to appoint a barrister to attend court for the making of the final charging order.  These costs vary.  Generally, delivery of the papers is in the region of £120 plus VAT and the barrister £500 plus VAT.

Court fees: (no VAT applicable)
Warrant of execution          £83
Attachment of earnings     £119
Third party debt order       £119
Charging order                   £119

Timescales
These also can vary, though in broad terms are:

  • Claim issued
  • Defence due within 14 days, or 28 days if an acknowledgment of service is sent to the court by the debtor.
  • If there is no defence we can then enter judgment on your behalf. If a defence is produced, then we will discuss with you the options available to you and the costs.

VAT will be charged at the current rate of 20% where applicable.

Insolvency

This is a complicated process and we advise each client individually.

Issuing a Statutory Demand – Personal / Corporate - £500 + VAT

Additional Anticipated disbursements

  • Process server fees: these vary depending on the circumstances, and are typically from £100 plus VAT
  • Timescale: Once a statutory demand has been served upon the Debtor, the Debtor has 21 days within which to make payment and thus avoid bankruptcy/wind-up proceeding. 

Bankruptcy Petition (Personal) - £1000 +VAT

Additional Anticipated disbursements

  • Process server fees: these vary depending on the circumstances, and are typically from £100 plus VAT
  • Court application fee - £302
  • Official Receiver Deposit - £990

Representatives fees at the first court hearing - will depend upon hearing location, seniority and specialism

Winding Up Petition - £1250 + VAT

Additional Anticipated disbursements

  • Process server fees: these vary depending on the circumstances, and are typically from £100 + VAT
  • Court application fee - £280
  • Official Receiver Deposit - £1600
  • Representative’s fees at the first court hearing - Will depend upon hearing location, seniority and specialism
  • London Gazette Advertisement - £101.52 plus VAT

The typical timescale to be allowed for obtaining a bankruptcy order / winding up order is 8 - 12 weeks from the date of presentation of the petition.

VAT will be charged at the current rate of 20% where applicable.

Our services include:

Insolvency |  Commercial Litigation  |  Debt |  Solicitors fees  |  Judicial Review |  Probate  |  Share agreements  |  Business