The Law Society Gazette this week published an article stating that the number of county court judgments against businesses has fallen according to the official year-on-year figures. It was reported that this fall was fuelling speculation that higher court fees were preventing businesses from going to court to recover the monies owed to them.
The official figures showed that the number of County Court Judgments against businesses in England and Wales fell from 99,670 in 2015 to 78,739 in 2016, apparently the lowest level recorded.
However the official figures also recorded that in 2016, 912,389 judgments were registered against consumers, the fourth consecutive year in which the total number of County Court Judgments have risen.
Claimants for money claims were hit with an increase in fee back in March 2015 when the fee charging regime was changed so that claims between £10,000 and £200,000 incurred a court fee of 5% of the amount claimed and claims over £200,000 will attract a fixed court fee of £10,000. At the time the changes were seen as significant as for example a claim with a value of £150,000 would have required a court fee of £1,115 as opposed to £7,500 as 5% of the money claim.
Claims below £10,000 fall into the Small Claims Track which means that only fixed costs can be recovered in a successful claim which would not cover the costs of a solicitor charging an hourly rate.
At Mayo Wynne Baxter we understand the importance of maintaining cash flow for a business and not having cash locked up in bad debts. We take a flexible approach to assisting businesses and individuals seeking to recover monies owed to them. We offer both a debt recovery fixed fee service and a small claims fixed fee structure that enables you to pursue debtors with minimum expense and maximum results.- See more at: http://www.mayowynnebaxter.co.uk/business/debt-recovery/#sthash.2NOPeIPa.dpuf
Our team are based across the South East and service clients in and around Brighton, Lewes, Eastbourne, East Grinstead, Forest Row, Gatwick, Pulborough, Seaford and Storrington.
If the above is of interest to you please contact Darren Stone, Head of Insolvency or William Backhouse our Debt Recovery Manager to find out more.