DEBT WORK – VIRGO SOLICITORS LIMITED – Costs and service information


Debt Recovery

Please note that VAT is charged at the prevailing rate of 20%


We offer an initial one hour fixed fee consultation for £150 +VAT

Our advice and fees

We provide the following services:

  • Reviewing and drafting letters of claim
  • Applications to court
  • Correspondence with the other party and the court

For sending a pre- action protocol-compliant letter of claim in a straightforward debt claim, the typical cost would be at our hourly rate of £250 plus VAT. These costs would be more in a complex matter or if investigatory work or counsel’s opinion is required to be solicited prior to sending the pre-action protocol letter. 

What makes the matter complex:  

  • Situations where the debtor disputes your claim and we enter into correspondence with the debtor regarding the dispute on your behalf and/or some form of alternative dispute mechanism is adopted, such as mediation; or
  • Situations where the debtor files a robust defence to your claim and counterclaim; or
  • The debtor applies to the court to set aside any default judgment obtained; or
  • The debtor is based abroad and service of the claim out of the jurisdiction is required; or
  • The debtor does not satisfy any judgment obtained on your behalf and enforcement or insolvency action is required.

In these situations we will advise you as to the cost implications bearing in mind the nature of the issues that have arisen.

For issuing court proceedings in a straightforward money claim for a fixed amount of up to £25,000, and entering judgment in default of a response, this will incur an additional two hours’ work at our hourly rate of £250 +VAT, amounting to £500 plus VAT. This is in addition to our fixed fee of £250 plus VAT for the first letter.

Please note: We do not provide debt recovery of more than £25,000


The above fees include:

  • Taking your instructions, reviewing the documentation and advising you about  your claim.
  • Sending a letter of claim (before action – pre-action protocol letter).
  • Drafting and issuing a claim form (including Particulars of Claim/Statements of Case) in court.
  • Where no acknowledgment of service or defence is received, applying to the court to enter judgment in default. 
  • On receipt of judgment in default, writing to the other side and demanding payment on your behalf. 
  • If payment is not received, providing you with advice on next steps and the likely cost of those steps. 

The above fees do not include:

  • Disbursements. Disbursements are costs related to your matter that are payable to third parties, e.g., court fees. We handle the payment of the disbursements on your behalf to ensure a smoother process and they should be the same at all firms if they are just charging you what they are being charged. Disbursements may also include:
  1. Barrister fees
  2. Accountant fees
  • Instruction of high court enforcement officers


We will try to recover your debt as swiftly as possible. The time it takes for the debtor to respond does play a part in the timescales involved, but our processes ensure that we are constantly engaging with the debtor to ensure a prompt resolution whenever possible. 

Debt recovery claims involving default judgments normally take between 6-12 weeks to conclude, depending on whether it is necessary to issue a claim and file an application for default judgment. Note however that the time taken by different courts to issue claims and process applications for default judgment can vary and this can impact on the overall time it takes for your case to complete.

If a claim is contested, we will do everything we can to recover the debt during our pre-legal process but once this has been exhausted, we will refer back to you to discuss the options available and make recommendations as to the best way to proceed. The options will depend on the circumstances but could include issuing legal proceedings or a statutory demand. If the debt is disputed, we will liaise with our commercial litigation team who will advise you appropriately. We estimate a timescale of six to twelve months if a claim is contested. 


Disbursements (including VAT if applicable)

Debt Recovery Disbursements up to 25K
We do not provide advice or assistance for debt recovery over £25,000

Who will handle your case

The fee earners who work on our debt recovery matters include:

Dr Abess Taqi, Director and Notary Public. Abess’s hourly rate is £250.00 per hour.  

Meet the Debt Department Team

Every individual case is unique, and we therefore encourage you to contact us for a bespoke cost estimate. We endeavour to update you on our costs throughout the course of your matter, allowing you to remain in control of the incurrence of costs.


Welfare Benefits

The welfare benefits system can be daunting to navigate at the best of times and even more so when misunderstandings lead to the loss of benefits and the prospect of legal action and possible demands for repayment. Virgo Solicitors are among the very small minority of solicitors within the UK who are qualified and experienced to provide the appropriate consultation and handle appeals to the the Department of Work and Pensions (DWP) and/or local authorities.

We can provide assistance with appeals other benefits which include:

Universal Credit
Disability Living Allowance and Attendance Allowance
Tax Credits
Habitual Residence and Right to Reside tests
Overpayment of benefits and tax credits
Housing Benefit