Our offices are now open. We have in place measures to ensure the safety of our employees and our clients. We would still recommend that you contact us by email or by telephone however and we are now able to offer meetings via Zoom or other virtual meeting apps.
Commercial debt recovery
Commercial Debt Recovery Solicitors in North Wales and Cheshire.
A Commercial Debt Recovery Solicitor is an experienced legal professional who specialises in helping, advising and taking action to recover money for businesses.
If unpaid debts are impacting your ability to run your business effectively, then talk to our specialist Commercial Debt Recovery Lawyers.
The team at PSR Solicitors have built a reputation for successfully recovering business debts for clients in Wales, Cheshire and across the UK.
For legal advice with regards to any form of business debt recovery call our office now for an initial consultation or leave your details using the enquiry form on the page and we'll call you back..
Our knowledgeable experts will provide personal, tailored advice for your business, whether your issues are with cash flow, payment of your staff or creditors, or the impact to your hard-earned reputation that can result from these problems.
Our personal and professional approach ensures brand and reputation protection.
We are ready to provide reliable, strategic and responsive advice, whatever the nature of your commercial debt recovery case.
Disputed and Undisputed Invoice Claims
Should you have an undisputed invoice claim, our team will work on a fixed-fee arrangement, which means that you won’t have to worry about costs.
If your claim is disputed, our dedicated litigation experts will be able to provide the advice you need to progress matters efficiently to a quick and satisfactory conclusion.
Your dedicated solicitor will be able to provide clear and straightforward advice on complex issues of business debt recovery, commercial debts and your chances of debt recovery.
We have extensive experience in litigious matters, and, on average, recover more for our clients than our competitors, so you can be confident that your claim will be in safe hands.
We promise that you will deal with your own dedicated solicitor, who will ensure that you receive the personal and professional service on which we pride ourselves.
How We Can Help You Recover Your Commercial Debt
There are different ways to approach the recovery of a debt, depending on the specific circumstances of your case. We have the experience and expertise to provide the personalised advice you need.
Taking your debtor to court is an option, but we prefer to see that as the final step.
There are other less costly, and more efficient, “pre-legal” alternatives which should usually be attempted first.
Although there is no set timescale to recover a debt, there is a clear and transparent process that can be followed.
Usually the first, and often only, step required is for us to contact your debtor on your behalf and request payment of the debt.
In many cases, simply being contacted by a professional, well-known law firm is enough to ensure full payment.
At this stage, our expert team will also be able to advise you on Late Payment Legislation, which may allow you to claim interest, compensation and reasonable costs of recovery in addition to your original debt.
This approach is usually successful.
Issuing a Letter Before Action
If the debt to your business remains unpaid, we can begin formal legal action by issuing a letter of claim (called a Letter Before Action), which includes a demand for payment of your debt (including interest and compensation if appropriate), and explains that, should the debt not be paid by a specified deadline, court proceedings will follow.
On many occasions, this formal, legal step is all that is required to recover your debt.
However, if your debt is not paid within the period you have specified, we can commence court proceedings.
Once we have made your claim, the debtor has 14 days to acknowledge the claim or enter a defence; should they fail to do so, we will request judgment.
If your debt is still not repaid at this point, we will provide you with the most appropriate advice in relation to the different available options to enforce your judgment.
Some possible strategies include:
- Attachment of earnings
- Charging orders
- Writ of control
- Warrant of execution
- Statutory demand
Further details can be found below in relation to each of these options, including clear and transparent information on the costs involved.
In addition, there may be other options which you might wish to explore, such as arbitration or an action under insolvency legislation.
We will be with you at every stage to offer responsive and personal advice.
How Much Does it Cost to Recover Commercial Debt?
If your claim is not disputed, the costs involved in each of the relevant steps of the process are set out below. Should your claim become disputed at any stage, your dedicated, expert solicitor will discuss the process, and the costs involved, at that stage.
You should keep in mind that, under the Late Payment Legislation, you might be able to claim interest, compensation and reasonable costs of recovery in addition to your original debt, which could increase the amount of your claim into a higher band.
Initial fact finding call/interview: Free
Execution: £200 plus VAT for a claim valued at up to £50,000. Our fees for claims worth more than £50,000 will be negotiated with you and agreed in advance.
Fees for excuting the debt recovery process include:
- Review of evidence
- Opening the file
- Drafting of the client care letter
- Drafting a Letter Before Action
- Advising upon response/failure to respond
To Trace an individual: £45 plus VAT, £3 Land Registry and £5 Companies House search
All response letters: £20 plus VAT
An additional £20 plus VAT will be charged if the letter also needs to be sent to a guarantor.
If we are unable to negotiate a satisfactory outcome of the defendant ignores our letter of claim the court proceedings will need to be issued.
To draft court proceedings:
|Debt||Court Fee||PSR Fee|
|£1,000-£1500||£80||£150 plus VAT|
|£1,500 - £3,000||£115||£200 plus VAT|
|£3,000 - £5,000||£205||£250 plus VAT|
|£5,000 - £10,000||£455||£300 plus VAT|
|£10,000 - £200,000||5% of claim||To be agreed|
Request judgment: £75 plus VAT
If your debtor fails to acknowledge the claim or enter a defence within 14 days, we will request judgment from the court.
To attend Court hearing: £300 plus VAT
If the matter is defended and a judge is required to determine the case.
Attachment of earnings: £150 plus VAT
An attachment of earnings requires your debtor’s employer to make deductions from your debtor’s pay to pay off your debt. This can take 6-8 weeks from the application to court.
There may be additional costs if a court hearing is required, or additional work is necessary should the debtor not be found, or their employment circumstances have changed.
A court fee of £110 is also payable.
Charging orders: £200 plus VAT (excluding hearing)
A charging order secures your debt against property owned by your debtor (often their home). This provides you with additional security should the debt not be paid in full. If the debtor does not object to the charging order, this process usually takes 4-6 week; should your debtor object, and a hearing is required, additional time and costs would follow.
There are additional third-party costs involved in obtaining a charging order:
- Court fee - £110
- Agent’s fee (if required) – varies on location
- Registration of charging order - £40
- Search fee - £11
Writ of control: £60 plus VAT
A writ of control is an order to from the High Court to an enforcement officer to take control of, and sell, as much of the debtor’s property as is required to settle your debt. Obtaining your money in this way can take about 8-12 weeks, and is dependent on the debtor’s assets, and their ability to pay.
It may be necessary for us to engage in additional correspondence in relation to the writ of control, in which case your solicitor will discuss an appropriate hourly rate with you for the additional work.
There are additional third-party costs involved in obtaining a writ of control:
A £90 HCEO fee is also payable for an unsuccessful writ.
Warrant of execution: £75 plus VAT
A warrant of execution (or a warrant of control) is an order from the County Court to a County Court bailiff to take control of, and sell, as much of the debtor’s property as is required to settle your debt. Obtaining your money in this way can take about 8-12 weeks, and is dependent on the debtor’s assets, and their ability to pay.
It may be necessary for us to engage in additional correspondence in relation to the warrant of execution, in which case your solicitor will discuss an appropriate hourly rate with you for the additional work.
There are additional third-party costs involved in obtaining a warrant of execution:
• Court fee - £110
Statutory demand: £150 plus VAT
We can issue a statutory demand on your behalf if your claim is not disputed (e.g. if you have a judgment in your favour, or you debtor accepts that the payment is owed). Your debtor will have 21 days from receipt of the demand to either pay the money they owe you or reach an agreement to pay it. A statutory demand is served by a process server, which usually takes about 2-3 weeks, and involves an additional process server fee (paid to the process server), which can be up to £150 plus VAT.
Contact the Commercial
Debt Recovery team at PSR
Established in 2009, PSR is recognised as a leading law firm in respect of commercial debt recovery across North Wales and Cheshire. With offices in Colwyn Bay, Shotton (Deeside), Wrexham and Ellesmere Port, we are perfectly positioned to help, advise and take action to recover your money. We are here to make everything as straightforward as possible for you. Over half of our current clients came to us on the recommendation of our previous clients, so you can be confident that we will live up to our promises. Our locations and expertise make us an ideal choice for commercial clients right across the North West, including Liverpool and Merseyside.
The strength of our team means we regularly work for commercial clients in all areas of England, Wales and Northern Ireland, so call us today, or use the enquiry form on the right-hand side of this page.
Mr U, Staffordshire
Miss G, North Wales
Mr J, Cheshire
Download Conveyancing Brochure
Find out more about PSR Solicitors - download our free brochure now.