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Debt Recovery

Debt Recovery

Below is a brief overview of the undefended debt recovery process.

1. Business to Business Debts

Step 1

Letter before Action

  • We receive instructions from you and obtain any further information that is required.
  • A Letter before Action is sent - the debtor has 14 days to respond.

Step 2

Court Proceedings

  • If no satisfactory response is received to the Letter before Action, we will issue court proceedings.
  • The debtor has 14 days to file a Defence. (If the debtor files an acknowledgement, this can be increased up to 28 days).
  • If no Defence is filed, judgment is requested by us automatically.

Step 3

Enforcement of the Judgment Once Judgment in Default obtained, enforcement action can be taken in a range of different ways:

  • Arrangements
  • - e.g., instalment payments to us. Instalments will be monitored by us and in the event of default, the debtor pursued.
  • County Court Bailiffs / High Court Enforcement Officer
  • - County Court, if the debt is £600.00 or under;
    - High Court, if the debt is over £600.00
  • Charging order
  • Attachment of earnings order
  • Third party debt order
  • Bankruptcy/winding up proceedings

Business to Consumer Debts

Stage 1

Letter of Claim
Initial information to be provided by the creditor
The creditor is required to send a Letter of Claim to the debtor, which should contain the information and documentation set out in the Pre-Action Protocol for Debt Recovery. If the debtor does not reply to the Letter of Claim within 30 days of the date on the letter, the creditor may start court proceedings.

Response by the debtor
The debtor should use the standard Reply Form (annex 1 to the protocol) to respond. The debtor can request copies of any documents from the creditor, and enclose documents they think are relevant. The creditor should not start court proceedings less than 30 days from receipt of the completed Reply Form, or 30 days from the creditor providing any documents requested by the debtor, whichever is later. If the debtor indicates that they are seeking legal advice, the creditor must allow the debtor a reasonable period of time to do so.

Disclosure of documents
The parties should exchange and disclose documents as early as possible, to help them understand each other's position. The creditor must provide documents or information (or otherwise explain why the documents or information requested are not available) within 30 days of any request.

Taking steps to resolve the matter and alternative dispute resolution (ADR)
If the parties cannot come to an agreement about the repayment of the debt, they should consider using an appropriate form of ADR. If the parties reach an agreement for repayment of the debt, which the debtor subsequently breaches, the creditor must send an updated letter of claim and comply with the Protocol afresh before issuing court proceedings.

Final Letter before Action
If the debtor responds to the letter of claim, but an agreement is not reached, the creditor should give the debtor at least 14 days' notice of their intention to start court proceedings.

Stage 2

Court Proceedings

  • If no satisfactory response is received to the Letter before Action, we will issue court proceedings
  • The debtor has 14 days to file a Defence. (If the debtor files an acknowledgement, this can be increased up to 28 days)
  • If no Defence is filed, judgment is requested by us automatically

Stage 3

Enforcement of the Judgment
Once Judgment in Default is obtained, enforcement action can be taken in a range of different ways:

  • Arrangements
  • - e.g., instalment payments to us. Instalments will be monitored by us, and in the event of default, the debtor pursued
  • County Court Bailiffs/ High Court Enforcement Officers
  • - County Court, if the debt is £600.00 or under; - High Court, if the debt is over £600.00
  • Charging order
  • Attachment of earnings order
  • Third-party debt order
  • Bankruptcy/winding-up proceedings

For more information please call us on 0208 555 8288 or E-mail us on info@skysolicitors.co.uk

The above is a brief overview of the process, and we are more than happy to discuss with you any of the stages in more details.
You will be kept fully informed of how your matter is progressing, and instructions will always be sought before any step is taken.

Your initial advice will cost you nothing. We will explain in straightforward language whether you have a claim for debt recovery or not. However, for the detailed assessment of your claim and to provide you with the written advice, there will be a charge of £150 plus VAT (20%). To bring a claim for debt recovery, there may be a few different funding options available to you.

If your case is very strong, we can take your case on a “No win, No fee” basis. On a “No win, No fee” basis, we shall charge you only if you recover your debt, in part or whole, as per our basic fees at the rates agreed with you in advance. However, there would be an additional fee chargeable to you called success fee that can either be in the form of an uplift (up to 100%) on our basic charges or a certain percentage (up to 50%) of share from monies that you recover in your claim.

Our basic charges are calculated on an hourly basis and are subject to the complexity of the case and the experience of the caseworker. Our standard hourly charges start from £165 per hour (for solicitors with less than 4 years of experience) to £400 per hour (for solicitors with more than 8 years of experience).

In addition to our fees, you are likely to pay for disbursements, namely Court fees, barrister fees, experts fees etc. The Court fees are fixed fees ranges from £35 to £455 for claims of value below £10,000; 5% of the value of the claim if it is valued between £10,000.00 - £200,000.00; and £10,000 for the claims of value above £200,000.00. Barrister fees and expert fees may vary depending on the complexity of the case and experience of the Barrister/Expert and the number of court attendances involved. These fees are always agreed upon with you in advance before these are incurred.


Please note that VAT, currently at the rate of 20%, is chargeable on top of all our fees and disbursements.

Our Team consists of trainee solicitor Mr Richard Hopkin and qualified solicitors namely Salman Randhawa and Chinonso Ijezie, both have more than eight years of post-qualification experience.