MRC Legal Ltd – Compliance with the SRA Transparency Rules
We are a regulated law firm and our regulator is the Solicitors Regulation Authority (“SRA”). As at 6 December 2018, law firms are required to publish certain details of their pricing structure for certain practice areas under the SRA’s Transparency Rules.
We have set out our pricing and service information below for debt recovery matters for business clients for debts of up to £100,000.
Details of our experience are set out in our website.
In every case, we agree a retainer with our clients at the outset of a matter. This involves the issuing of an engagement letter which sets out details of our contract with you.
We have a range of pricing structures available and can provide a quote for work that you require to be carried out.
In respect of debt recovery matters for businesses for debts of up to £100,000, we have set out the pricing if we charge at a standard hourly rate of £250 plus VAT. However, we reserve the right to agree an alternative pricing structure with you depending on the circumstances of the case.
Please note that the pricing set out is only in respect of our costs for acting for you. In order to bring a claim, you will also need to pay disbursements (which are payments to third parties) and we have set out details of some of the likely disbursements below.
A debt recovery matter will usually break down into three stages:
1. Pre-Action Stage
This typically involves taking instructions as to the background to the matter and reviewing any available documents, advising you as to your options and initial correspondence with the debtor.
2. Issuing Proceedings
This may involve either (i) issuing a claim form or (ii) issuing a statutory or written demand and thereafter proceeding with a bankruptcy petition (for individual debtors) or a winding up petition (for corporate debtors). There are alternative options available which we can discuss with you if appropriate which also include the issuing of a creditor’s administration application. However, for the purposes of the pricing information, we have limited our pricing to the first two options.
3. Enforcement Stage
If you have issued a claim form and obtained judgment, the final stage is to enforce your judgment against the debtor. There are a number of enforcement options and we will advise you on the most appropriate option depending on the circumstances of the case.
Based on our experience, we would expect the range of pricing to be as follows:
Simple case: £2,500 to £7,500 plus VAT and disbursements.
Complex case: £10,000 to £30,000 plus VAT and disbursements.
There are a number of variables and factors which may impact on the fees that you may have to pay. For example:
- If there are a number of documents to review or complicated issues to consider prior to corresponding with the debtor or issuing proceedings.
- If the matter is defended, the bankruptcy or winding up petition objected to or a counterclaim is issued.
For example, if you choose to issue a statutory demand and the debtor makes an application to Court to set aside the statutory demand, you may become involved in satellite litigation where the application is dealt with at a Court hearing.
You will need to be prepared to pay for disbursements such as court fees, process server fees, advertisement fees and barrister’s fees. We will provide you with details of the likely fees involved in dealing with your matter, but any barrister’s fees will be subject to obtaining a quote which will need to be approved prior to instructing the barrister.
Details of current court fees are available from the Ministry of Justice’s website – www.gov.uk/court-fees-what-they-are. The fees are subject to change.
By way of example, we have set out details of the usual disbursements which would be incurred when you issue a claim form or institute insolvency proceedings to recover your debt:
Insolvency (Bankruptcy/Winding Up Petition)
|Court Fee of up to %5 of the value of the claim||Process Server’s Fee (Statutory Demand) – typically £100 plus VAT|
|Bankruptcy Search – £1|
|Hearing Fee||Bankruptcy Petition Fee – £1,270
(Includes the Official Receiver’s deposit of £990 which would be repaid if the petition is dismissed)
|Barrister’s Fees||Winding Up Petition Fee – £1,880
(Includes the Official Receiver’s deposit of £1,600 which would be repaid if the petition is dismissed)
|Process Server’s Fee for serving the petition – £100 plus VAT|
|Advertisement Fee (winding up petitions only) payable to the London Gazette – £79.40 plus VAT|
|Barrister’s Fees (for appearing at the hearing(s) of the petition.|