Sometimes, you just can’t get paid. You may have done all the right things yet the money is still outstanding. The decision you will have to make at that stage is whether a debt is worth pursuing. We can work with you to help you make that decision on an informed basis.
At MKB, you do not pay over the odds for a premium debt recovery partner.
The first step once you decide to go ahead with recovering your debt is preparing a Letter Before Action which must be sent before Court proceedings are issued. The Letter Before Action gives a summary of the factual background, summarises your losses and expenses and confirms the amount sought.
It is very easy to try a one-size-fits-all approach to debt recovery however this is not always the best way. We have found, through experience, that a specifically designed Letter Before Action and bespoke tailored procedures dramatically increase your prospects of recover.
Our fee structure for sending a standard Letter Before Action or a bespoke letter with contents specific to your business and its needs is set out below.
|DEBT VALUE||OUR FEE (INC VAT)|
|Up to £5,000||£300.00|
|£5,001 – £10,000||£400.00|
|£10,001 – £50,000||£500.00|
|Bespoke Letter Before Action||Agreed on a case by case basis|
If the other party disputes your claim at any point, we will discuss with you any further work that is required and provide you with revised advice about costs if necessary, which could be on a fixed fee, no win no fee basis or an hourly rate if more extensive work is needed.
Our fee includes:
- Taking your instructions and reviewing documentation;
- Undertaking appropriate searches;
- Sending a letter before action; and
- Receiving payment and sending this to you.
Often, correspondence from a Solicitor holds weight and gets results. In our experience many debts are paid at this stage as you have demonstrated your willingness to pursue the debt through whatever means necessary. However, if the Letter Before Action does not prove successful it may not be appropriate to proceed immediately with Court action, and we always consider the debtor’s profile and their type of business when deciding how to progress your case. Therefore, it is useful to put in place a step by step process for collection which we will follow.
On the basis that you would wish to proceed immediately to Court action then Court proceedings are commenced either by issuing a claim at the Court or using Money Claims Online. Either way, you will be required to pay a fee which is set dependent on the size of your claim. If using solicitors you are also entitled to add a small amount of their fixed costs to the debt; again at a rate fixed by the Court. In addition, you are entitled to claim interest; either statutory or contractual.
Our fee structure to issue proceedings to pursue a standard and undisputed debt is set out in the table below:
|DEBT VALUE||COURT FEE||OUR FEE (INC VAT)|
|Up to £5,000||Between £35.00 to £205.00||£300.00|
|£5,001 – £10,000||£455.00||£400.00|
|£10,001 – £50,000||5% of the value of the claim||£500.00|
|Bespoke Claim||–||Agreed on a case by case basis|
Our fee includes:
- Drafting and issuing the claim;
- Where no Acknowledgment of Service or Defence is received, applying to the Court to enter Judgment in default;
- When Judgment in default is received, writing to the other side to request payment; and
- If payment is not received within 14 days of default Judgment being entered, providing you with advice on next steps and likely costs
Please note that these costs:
- apply where your claim is in relation to an unpaid invoice which is not disputed. If the claim is disputed we will discuss any further work required and provide you with revised advice about costs if necessary.
- are not for matters where enforcement action, such as the bailiff, is needed to collect your debt.
- do not include any steps to recover your debt via the use of statutory demand, bankruptcy or winding up procedures. If you require further information on this please feel to contact Glyn Staves for a no obligation discussion.
If enforcement action is needed we shall provide you with further advice about the costs involved.
Please note that where sufficient information about the profile of your bad debts is known then we would consider entering into a no recover no fee arrangement.
Matters usually take 4-8 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, or the debt is disputed the matter will take longer to resolve.
How else can we help?
We can work with you to minimise any unpaid debt that you incur and ensure that when you are owed money you are in the best possible position to recover it as quickly as possible.
Certain steps that you can take, which we can help you with are:
- An ounce of prevention is worth a pound of cure. We can work with you to ensure you have the appropriate documents and processes in place.
- Terms and conditions. Well drafted terms and conditions can minimise the ability of a debtor to evade payment and maximise your chances of recovery.
- We can deliver bespoke training to ensure that your staff understand how to implement your terms and conditions of business as well as implement and improve your debt recovery processes.
Our services can be tailored to your business’ needs. For a confidential exploratory discussion about your debt recovery processes please contact Glyn Staves on 01226 215371.