Debt Recovery

Debt recovery disputes and litigation

Cash flow is key to the success of any business. If you are not receiving payments on time,  Farnfields Solicitors may be able to help you. Our specialist team will maximise your debt recovery AND keep costs down, with our fast and efficient service.  It means that you can concentrate on running your business while we concentrate on recovering the payments that you are owed.

Debt recovery service

We offer a simple debt recovery service for un-disputed, simple debt recovery cases under the value of £10,000.00. At Farnfields, we have experience dealing with one-off cases, to multiple requests for assistance, for both small and large organisations and individuals.  Our debt recovery service aims to keep things simple, to ensure the process is easy to follow and understand.

Our debt recovery service includes:

  •  Letters of claim – sometimes all it takes is a legal letter
  •  County Court claims
  •  County and High Court enforcement
  •  Charging orders
  •  Telephone debt recovery
  •  Tracing debtors

Our team has an excellent reputation for handling the situation professionally and effectively because we realise that a debtor may become a customer again in the future.  At the same time, we will work hard to ensure that you receive the payments that you are due.

Our debt recovery service starts by sending a letter of claim, to a debtor. If a response is not received to this letter, we can continue to pursue the debt by issuing a claim on your behalf, under further agreed fees.

With Farnfields handling your debts for you, this frees up valuable time in your schedule to focus on running and maintaining your business. Furthermore, we will carry out this work cost-effectively and promptly.

We will continually update you on costs as your matter progresses and will always provide you with the best course of action to take.

If you would like to obtain any further information on our debt recovery service, please contact us or call us on 01747 825432.

High value/contested debts

If the debt is contested and the matter becomes litigated, or if the debt is over the value of £10,000.00, we have a team of knowledgeable lawyers within our Dispute Resolution Department who will be happy to assist you further. If the matter becomes litigated, we offer additional services, including:

  • Mediation
  • Advocacy
  • County Court claims
  • High Court claims


Debt Recovery: Range of fixed fees

The following are our fees for our Debt Recovery Service.

The service is only available for undefended claims under the value of £100,000.00. It will not apply to construction disputes, disputes over contractual terms, insolvency, service charge claims, complex consumer disputes, claims where there are more than one defendant and commercial rent arrear

We will seek to recover interest on debts where possible.

Stage 1

Our fee for taking instructions, advising, preparing and issuing a standard letter of claim is £500.00 plus VAT excluding disbursements such as search fees.

The fee includes:

  • taking your instructions and reviewing documentation
  • undertaking appropriate searches
  • drafting the letter of claim and making any amendments as you see fit
  • preparing and sending the letter of claim with relevant attachments
  • considering any response

The fee will not include additional costs involved if the debtor replies contesting the debt. Additional time spent taking instructions on the disputed debt and advising and communicating with the debtor will be charged at the appropriate hourly rate.


  • Once instructed we will endeavour to send out a letter of claim within 21 days from the date of instruction.

Stage 2

We operate a fixed-fee for preparing and issuing court proceedings in straightforward debt recovery cases where the value is under £100,000.00.

The fee is:
£500.00 plus VAT but excluding disbursements such as court fees for claims under £10,000.00

£750.00 plus VAT but excluding disbursements such as court fees for claims over £10,000.00 but less than £50,000.00.

£1,000.00 where the claim is over £50,000.00 but less than £100,000.00

Please note that the court fee is recoverable from the debtor and can be added to the overall claimed amount.

The fee includes:

  • taking your instructions and reviewing documentation
  • drafting the claim form and making amendments as you see fit
  • drafting the particulars of claim and making amendments as you see fit
  • preparing and sending the claim to the court with relevant attachments

The fee does not include the costs incurred if a debtor defends the claim or part of it. In those circumstances, any subsequent time spent will be chargeable on an hourly rate basis (please see hourly rates under Other, below). We will discuss with you the likely costs involved should that occur.


The court will charge an issue fee, which is based upon the value of the claim as follows:

  • up to £300.00: £35.00 inc. VAT;
  • £300.01 to £500.00: £50.00 inc. VAT;
  • £500.01 to £1,000.00: £70.00 inc. VAT;
  • £1,000.01 to £1,500.00: £80.00 inc. VAT;
  • £1,500.01 to £3,000.00: £115.00 inc. VAT;
  • £3,000.01 to £5,000.00: £205.00 inc. VAT;
  • £5,000.01 to £10,000.00: £455.00 inc. VAT;
  • £10,000.01 to £200,000.00@ 5%o of the value of the claim; and
  • More than £200,000: £10,000 inc. VAT.

Please note: the court fee is recoverable from the debtor and can be added to the overall claimed amount.

The debtor will be given 14 days from service of the claim form in which to acknowledge service indicating an intention to defend the claim or admit the claim. If the defendant returns the acknowledgement of service indicating an intention to defend, the defendant will have a further 14 days to file a defence or make payment.

Stage 3

Our fee for requesting default judgment under the Fixed Fee Debt Recovery Service is a universal fee of £70.00 plus VAT.

Once judgment is entered the defendant will have one month to pay the judgment debt before a CCJ is registered against their name. If the judgment is settled during that one month period, the defendant may apply for the CCJ to be cancelled.

Stage 4

Our fixed fees for enforcement options are set out below. The figures are exclusive of VAT which will be added at the appropriate rate (currently 20%) and disbursements such as court fees, agent’s fees, search fees, Land Registry fees etc. We can advise you on those at the appropriate time. They do not include the costs involved if defended or applications are made to suspend enforcement.

Initial review and advice before enforcement

Issue of County Court warrant of control

High Court enforcement

Undefended Charging Order Application

Undefended Third party debt application

Undefended Attachment of Earnings application

Order to provide information

The fee includes:

  • considering your options, advising on the best course of action and taking instructions
  • preparing and sending the relevant application to be sent to court
  • liaising with the court regarding progress throughout

The fee does not include:

  • further correspondence with the debtor following submission of the relevant application save for where the debtor makes contact to in order to make payment


  • Timescales for enforcement proceedings can vary and your legal advisor will keep you updated on progress.

Third Party enforcements charges:
We use third party bailiffs to enforce debts registered in the High Court. Our charges in arranging this
will be £75.00 plus VAT. There is £71 court fee to pay to register County Judgments in the High
Court. The bailiffs otherwise recover their costs from the debtor.

Court fees

The relevant court Fees payable are fixed by the Court Service and can be accessed at

Individuals with limited means may be fee exempt.

Depending on how your matter unfolds, there could be additional fixed costs payable as part of the court proceedings (such as hearing fees, general application fees, appeals, insolvency proceeding fees, court copy documents etc. Details of such court fees can be accessed at


If a claim is over £100,000 the fixed-fees above will not apply.

If the claim is disputed or defended the fixed fees will no longer apply.

If the claim is disputed, or we have reason to believe that the claim will be disputed, work will be chargeable on an hourly rate basis. An estimate of cost will be given at the outset and will be dependant on the complexity and amount of documentation to review. It will be based on the following hourly rates:

  • Nigel Mills, Senior Solicitor: £300.00 plus VAT per hour
  • Louise Cook, Paralegal: £185.00 plus VAT per hour.

Claims under £10,000 will be allocated to the small claims track. Legal costs are not generally recoverable from the debtor other than modest fixed sum for issue.

Claims over £10,000 up to £25,000 are likely to be allocated to the fast track (where the court hearing can only last for 1 day and where it can take up to a year to reach a hearing).

Claims over £25,000 but less than £100,000 are likely to be allocated to the intermediate track (where hearings can last for more than one day but costs are now fixed in most cases)

Claims over £100,000 are likely to be allocated to the multitrack.

If you wish us to prepare and issue a statutory demand, please contact us with details and further information. We will provide you with details of the likely fees which will start from £600.00 plus VAT.

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