LEGAL PROCEEDINGS (UNDISPUTED DEBTS)
There are four stages to legal proceedings:
- Letter Before Action (which is prepared in accordance with the Practice Direction on Pre-Action Conduct and sets out what is owed)
- Issuing Legal Proceedings
- Judgment
- Enforcement
We charge a fixed-fee for Sending a Letter Before Action and Issuing Legal Proceedings based on the size of your debt:
Claim Size (£) | Court Fee (£) | Our Charges (£) (Plus VAT) | Recoverable Fees |
25-300 | 25 | 450 | 75 |
300-500 | 35 | 450 | 85 |
500-1,000 | 60 | 450 | 130 |
1,000-1,500 | 70 | 450 | 150 |
1,500-3,000 | 105 | 450 | 185 |
3,000-5,000 | 185 | 450 | 265 |
5,000-10,000 | 410 | 500 | 510 |
10,000 + | 4.5% of the claim | 5% of the claim | Court Fee (4.5%) + 100 |
Upon entering Judgment, we charge £65.00 plus VAT for debts under £5,000 and £80.00 plus VAT on debts over £5,000.00. The cost of enforcement will be agreed with you in advance, should it be necessary.
Whilst this is still covered under our “Pricing – Commercial Debt Recovery”, if the debtor is a sole trader or an individual, the Pre-Action Protocol for Debt Claims will apply which means we are unable to send out a standard Letter Before Action and must give the sole trader or individual 30 days to respond to the Letter of Claim.
If an invoice becomes defended or disputed either (i) after sending a Letter Before Claim or (ii) after Issuing Proceedings, such defended or disputed claims will be charged by Palmers on a time spent basis and additional court fees may be payable. We will discuss such costs with you at the relevant time and before proceeding further. A case will become defended and/or disputed when the debtor challenges payment of your invoice(s) for any reason.