Debt Recovery Pricing Structure April Debtors Residing in Scotland

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Russell James
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1 Debt Recovery Pricing Structure April 2013 Debtors Residing in Scotland Letters before Action Standard letter before action (LBA): 2.00 (+VAT) Business to business (Late Payment of Commercial Debts (Interest) Act 1998) letter before action including interest and compensation calculations: 5.00 (+VAT) Note: both the above LBA prices include taking initial instructions, issuing the LBA and reporting back/obtaining further instructions. Additional work in obtaining payment from the debtor including negotiations will be charged at (+ VAT) per letter/telephone up to a maximum of 10 letters/telephone calls, when a full costs estimate will be given. Issuing Court Proceedings Fixed fee includes: preparation of Claim, issue of proceedings at court, service of the same and obtaining an Extract (Judgment) Debt amount Burnetts professional charges (+VAT) (Amount recoverable from debtor is shown in brackets) Court Fees (recoverable from debtor) Possible Additional Disbursements * (recoverable from debtor) (110.00) (165.00) (220.00) , (265.00) ,001 50, (265.00) , (265.00) * If we are unable to prove service of the Claim which will be sent by recorded delivery for example the debtor refuses to accept delivery of it, it will require to be served by the Sheriff Officers who will charge either49.00 or plus VAT.

00 (+VAT) Note: both the above LBA prices include taking initial instructions, issuing the LBA and reporting back/obtaining further instructions.

2 Enforcement of Extracts (Judgments) against debtors residing in Scotland Letters of Inhibition (Similar to Charging Orders in England and Wales) Professional Fees and Disbursements (non recoverable) plus VAT Sheriff Attachments (Similar to Instructing Bailiffs/High Court Enforcement Officers in England and Wales) Professional Fees Sheriff Officers Fees (non recoverable) (Recoverable) plus VAT Approximately 10% of the value of the debt

00 plus VAT Sheriff Attachments (Similar to Instructing Bailiffs/High Court Enforcement Officers in England and

3 Liquidation (Scotland) Short Form Demand Letters (48 hours) Scottish Insolvency Proceedings Professional Fees Sheriff Officers Fees (Should be recoverable from debtor) (Recoverable from debtor) plus VAT Liquidation Proceedings (Amount recoverable from debtor is shown in brackets) Professional fees (+VAT) (500.00) Court fee (85.00) Sheriff Officers (123.50) Note fee (38.40) Sequestration (Scottish Bankruptcy) Statutory Demand (21 days) Professional Fees Sheriff Officers Fees (Recoverable from debtor) (Recoverable from debtor) plus VAT Sequestration Proceedings (Amount recoverable from debtor is shown in brackets) Professional fees (+VAT) (500.00) Court fee (102.00) Sheriff Officers (181.74) Accountant in Bankruptcy Fee (200.00)

50) Note fee 38.40 (38.40) Sequestration (Scottish Bankruptcy) Statutory Demand (21 days) Professional Fees Sheriff Officers Fees (Recoverable from debtor) (Recoverable from debtor) 200.

4 DEBTOR TRACING/EMPLOYMENT STATUS REPORTS Debtor Tracing We are able to offer a complete tracing service to search for a debtor s current address and/or employment details Standard Service Trace only (debtor): VAT - if trace successful VAT - if trace unsuccessful Trace search (employment): VAT - if trace successful in producing employment details or showing that debtor is in receipt of benefits VAT - if search unsuccessful Trace and status search: VAT - only if successful on both counts (if only successful on one count, charges above will apply as appropriate) VAT - if unsuccessful on both counts Express Service (48 hours maximum) Trace only (debtor): VAT - if trace successful VAT - if trace unsuccessful Trace search (employment): VAT - if trace successful in producing employment details or showing that debtor is in receipt of benefits VAT - if search unsuccessful Trace and status search: VAT - only if successful on both counts (if only successful on one count, charges above will apply as appropriate) VAT - if unsuccessful on both counts Status only searches - important information Please note that our tracing agents to comply with the data protection requirements require a valid residential address for the subject of enquiry in order to carry out a Status Only enquiry and they will verify/confirm that the subject still resides at the supplied address at no extra charge. Should the subject be found to have left (or not be resident) at the supplied address, our tracing agents will automatically carry out a Trace and if successful this will mean that a total invoice of VAT for the standard service, VAT for the Express 48 Hour service will be charged.

00 + VAT - if trace successful in producing employment details or showing that debtor is in receipt of benefits 5.00 + VAT - if search unsuccessful Trace and status search: 60.

5 Procedures involved in Scottish claims Small claims actions (under 3,000.00) Following the LBA sent by Burnetts, we will need to provide either the invoices or statement to our Scottish agents to allow them to draft the summons. The summons equivalent to the claim form and particulars of claim are then sent to the court. The court issues the claim and returns it to our Scottish agents within 7-10 days. They return the warrant (Issued claim form) to our agents with a calling date, which will be up to 8-10 weeks from the date it was issued. The Scottish agents will then attempt to serve the warrant by recorded delivery on the debtor. If they are unable to serve the warrant by recorded delivery they will serve the warrant using the sheriff officers, which would incur an additional disbursement of As well as the calling date there is a return date, which will be 14 days before the calling date. When the matter reaches the calling date our Scottish agents will return the summons and warrant and check if any defence has been lodged at the court. If no defence has been lodged, the court will issue a decree equivalent to county court judgment approximately 3 weeks later (minimum period is 2 weeks). Summary cause actions (3, ,000.00) Following the LBA sent by Burnetts, we will need to provide either the invoices or statement to our Scottish agents to allow them to draft the summons. The summons equivalent to the claim form and particulars of claim are then sent to the court. The court issues the claim and returns it to our Scottish agents within 7-10 days. They return the warrant (issued claim form ) to our agents with a calling date, which will be up to 8-10 weeks from the date it was issued. The Scottish agents will then attempt to serve the warrant by recorded delivery on the debtor. If they are unable to serve the warrant by recorded delivery they will serve the warrant using the sheriff officers, which would incur an additional disbursement of either or As well as the calling date there is a return date, which will be 14 days before the calling date. When they reach the calling date our Scottish agents will return the summons and warrant and check if any defence has been lodged at the court. If no defence has been lodged the court will issue a decree equivalent to county court judgment approximately 3 weeks later (minimum period is 2 weeks). Ordinary actions (over 5,000.00) These are essentially quicker than the small claims and summary actions. Following the LBA sent by Burnetts, we will need to provide either the invoices or statement to our Scottish agents to allow them to draft the summons.

The summons equivalent to the claim form and particulars of claim are then sent to the court. The court issues the claim and returns it to our Scottish agents within 7-10 days.

6 The initial Writ (equivalent to the claim form and particulars of claim) is drafted and sent to court. The court issues the claim and returns it to our Scottish agents within 7-10 days. They return the warrant (issued claim form) to our agents with a calling date, which will be up to 8-10 weeks from the date it was issued. The Scottish agents will then attempt to serve the warrant by recorded delivery on the debtor. If they are unable to serve the warrant by recorded delivery they will serve the warrant using the sheriff officers, which would incur an additional disbursement of either or days after the date of service the Scottish agents would minute equivalent to request for a decree equivalent to judgment. After another 3-4 weeks the Scottish agents would obtain the decree (minimum 2 weeks). When the extract of the decree equivalent to judgment is received the Scottish Agents can commence enforcement. Insolvency Liquidations (limited company) for a debt over 2,000.00, the most effective way of prompting payment is to serve a short form demand which is cheaper and quicker than the equivalent English route (statutory demand). It gives the debtor 48 hours to pay the debt or make an arrangement to pay. If it is not paid by then liquidation proceedings can be started after the 48 hour period has expired. One particularly helpful difference between the English and Scottish liquidation process is that as soon as the petition is sent to the court, the court will appoint a provisional liquidator. The provisional liquidator has the power, which he quite often uses, to freeze the bank account of the limited company. This means that if there is money available, a liquidation is dealt with very quickly and very often with the desired result. Sequestration (personal bankruptcy) first of all our Scottish agents would need to serve a statutory demand. A statutory demand allows the debtors 21 days to deal with the matter. If payment is not made within the required time frame, our Scottish agents can then present a petition for sequestration equivalent to make an application for bankruptcy on the basis of an expired statutory demand. The court will issue the sequestration proceedings and there will be a calling date of 4-6 weeks. This is served by the sheriff officers. Our Scottish agents will then attend to the necessary paperwork and attend the sequestration.

The Scottish agents will then attempt to serve the warrant by recorded delivery on the debtor.

Guide to Debt Collection in Scotland

Guide to Debt Collection in Scotland There are a variety of debt collection procedures available in Scotland many of which are similar to those used elsewhere in the UK. The usual demand letters and statements will be issued but if the debtor