Debt Recovery
Bunkers Solicitors is pleased to offer a Debt Recovery Scheme for unpaid and undisputed invoices up to £5,000.
Key Features
- A scheme for the recovery of unpaid invoices up to £5,000 where there is no dispute.
The service is divided into stages with no obligation on you to proceed to the next stage. - Our charges are based on low fixed fees together with a small fee calculated on the value of the debt. Consequently, you will always be aware of the fees to be paid. The lowest fixed fees are £40.
- We can also make a claim for interest on trade debts even if there is no written contract which provides for the payment of interest.
Just provide us with the following:
The debtor’s name, address and type of business (and company number).
The sums owed and the source of those sums (e.g. an invoice).
Any relevant terms of business.
Payment of our initial fixed fee and disbursement.
Stage 1: Upon receipt of the above, we will carry out a Company Search (if the debtor is a company) to ensure that it still exists, is correctly titled etc. and within 2 working days we will despatch an initial letter of claim specifying a date by which payment must be made.
Stage 2: We will contact you again at the expiration of the time limit in the letter of claim to obtain confirmation that the invoice is still outstanding and that no correspondence has been received from the debtor. Upon receiving your instructions to proceed to the next stage, we will issue a Claim Form.
Stage 3: If no response to the Claim Form is received within 14 days of service, we can apply to the Court for a Default Judgment.
Stage 4: If payment of the Court Judgment is not made, we can commence Enforcement Proceedings by way of a Warrant of Execution (i.e. the Bailiffs). At this stage we will liaise closely with you to obtain any further information you may have about the debtor’s means, assets etc.
Our Simple Charging Scheme
Our charging structure for the scheme is as follows:
The vast majority of commercial debts to which this sort of scheme applies, are paid by the debtor following receipt of a Solicitor’s letter of claim.
- For an initial letter of claim, a fixed fee of £40.00 together with a fee equivalent to 3% of the debt paid thereafter.
- For the issue of a Claim Form, a fixed fee of £80.00 together with a fee equivalent to 6% of the debt paid thereafter.
- Obtaining a Default Judgment, a fixed fee of £50.00 together with a fee equivalent to 6% of the debt paid thereafter. The Default Judgment would include the debt, interests, costs and court fees.
- For the issue of a Warrant of Execution a fixed fee, of £75.00 plus a fee equivalent to 10% of the debt paid thereafter.
The vast majority of commercial debts to which this sort of scheme applies, are paid by the debtor following receipt of a Solicitor’s letter of claim.
Claims not Suitable for the Scheme
Not all claims will be suitable for such a straight forward low cost scheme. The scheme is only for undisputed claims in England and Wales and in certain circumstances the scheme will not apply, for instance, if a claim is disputed by the other party or a reasonable offer of settlement is made by the debtor but rejected, the initial information proves to be incorrect, instructions are withdrawn before the matter takes it full course or a Warrant of Execution is unsuccessful.
Contact
For further information please contact Robin Churchill, Dispute Resolution Partner on 01273 766932 or robin.churchill@bunkers.co.uk.