How much is a lawyer to recover debt?

Our debt recovery service is suitable for recovering multiple undisputed invoice debts of any size.

We can be upfront about the costs

We understand that recovering money owed to you may make a huge difference to you financially, and trying to get it repaid on your own can be complicated and stressful.

You may be considering hiring a lawyer to recover debt, but are concerned about how much it is going to cost. Each individual case is unique but we hope that this information helps you to get started.

How long will it take to receive the money that is owed to me?

There is no set timescale to recover a debt. It depends on many factors such as whether the debtor is an individual, if the claim is contested, or if they are even able to afford it. However that does not mean that there is not a clear and transparent process by which we will pursue your claim. Below you can see an overview of what we will do to begin the process of securing the money that is owed to you.

It begins with sending a letter of claim demanding payment and threatening court action in accordance with the relevant Pre-Action Protocol or Practice Direction. If the debtor fails to pay, proceedings will be commenced in the County Court.

If the debtor fails to acknowledge the Claim within 14 days, we will proceed to obtain a County Court Judgment (“CCJ”) which will, once obtained, be noted in the register against the credit rating of the debtor.

If, after the due date for payment, the debtor fails to pay voluntarily we will take enforcement action by the most appropriate method.

Alternatives may be available under the insolvency legislation. We can advise you on that.

What happens if the debtor disputes the debt?

Our debt recovery service is fully supported by our Dispute Resolution team and the matter will be passed to one of our solicitors who will be able to advise you on the process and the likely costs involved in pursuing the matter to trial.

What does it cost?

The following charges apply to all matters except those matters which are disputed and/or defended by the debtor.

We charge a one off fee of £15 plus VAT for taking on a debt and sending a letter of claim. If the debt is paid without the need for legal proceedings to be issued we will also charge you an additional fee which will be calculated as a percentage of the debt recovered. We will claim interest and other sums where available.

If proceedings are to be issued, you will need to pay the relevant court fee and the fixed costs plus VAT. The court fee and fixed costs (not the VAT) will form part of the claim. If the debtor then pays in full or in partial settlement of the sum claimed, we will be entitled to charge an additional percentage recovery, calculated on the debt recovered. Any balance recovered over and above these deductions will be paid to you.

In the event that the claim does not result in any payment being made by the debtor, then RWK Goodman will only charge the court fees, fixed costs plus VAT and any other disbursements together with the £15 plus VAT for the letter of claim.

If any additional work is required, including any settlement negotiations, correspondence with the debtor or additional advice or assistance, following the letter of claim or issue of proceedings, this work will be charged separately. We will discuss these charges with you before incurring them.

Where the debt is below £5,000 and the debtor fails to acknowledge service of the claim after 14 days
£22 + VAT

Where the debt is above £5,000 and the debtor fails to acknowledge service of the claim after 14 days
£30 + VAT

What sort of things can add extra costs?

Sometimes you may be successful in obtaining judgment against a debtor but the debtor may not pay. Various options of enforcement are available and we can advise you of the most appropriate method and the costs associated on a case by case basis. This will incur additional costs at our hourly rates, payable whether the enforcement is successful or not. If enforcement is successful, we will be entitled to charge an additional percentage recovery fee on the debt recovered.

Contact us now to find out how our dispute resolution solicitors can deliver the solutions you need

contact us
Message us today

Message our team and we will try to get back to you within one working day.

Our services

Our Dispute Resolution services

Banking and Financial Services litigation
A diverse set of Banking and Financial Services lawyers who advise on transactions, banking litigation and recovery situations, financial services regulatory matters and insolvency.
Civil Fraud and Investigations
Allegations of fraud are a serious matter. They can have financial and reputational consequences, and possibly criminal implications. Get quick and effective results with our civil fraud lawyers.
international disputes
International dispute resolution
International organisations with disputes in overseas markets and businesses and individuals with overseas operations and assets need lawyers who are experienced in managing cross-border disputes.
Intellectual property dispute resolution
We provide specialist legal advice across multiple areas such as Trade Marks, Copyright, Design Right (both registered and unregistered), Passing Off (and Confidential Information) and Patent disputes.
Litigation funding options
Litigation can be expensive. You may not have the means to pursue a claim or you may prefer not to lock-up funds in legal fees. Litigation funding can assist.
Company and partnership disputes
Our commercial dispute resolution team have significant experience in Company and partnership disputes and can guide you through them so that you can focus on your business.
Commercial Disputes
Our dispute resolution team is experienced in a wide variety of commercial disputes and can work with you to resolve the dispute, either through ADR or by guiding you through legal proceedings and enforcement.
Alternative Dispute Resolution
Alternative Dispute Resolution offers a flexible forum for the resolution of disputes. Matters referred to ADR usually conclude more cost effectively and considerably quicker than litigation through the courts.
Insolvency & Restructuring
When insolvency or bankruptcy is the only option, our task is to be on our clients’ side to help them fulfil their duties and reduce their exposure to any risks that may arise.
Construction and engineering disputes
Disputes within the construction industry have a hugely disruptive effect upon your timescales and margins. It is therefore vital that you resolve any disputes quickly and in a cost-effective way.
Latest from the info hub

View more articles related to Dispute Resolution