Understanding costs · Settlement with incaseof.law
Collection settlement: principal, interest and partial payments
The invoice amount, money received and money paid out are different figures. The incaseof.law terms distinguish principal, collection charges, interest, court costs and legal fees. Partial payments follow an agreed allocation order. Your payout therefore cannot be inferred from the amount received alone.
How are the individual amounts treated?
| Item | Meaning for settlement |
|---|---|
| Principal | Your outstanding invoice amount after relevant payments and credit notes |
| Collection charges and default interest | Remunerate incaseof.law under the agreed model |
| Court fees | Payable by the client; subsequent reimbursement is not guaranteed |
| Legal fees | Relevant where lawyers are separately instructed with express approval |
| Transmission charges | May arise separately depending on the court submission route |
The terms are the contractual basis of this overview. Statutory reimbursement by the debtor is a separate issue with its own requirements. This overview is neither an invoice nor an individual cost quotation.
What happens to a partial payment?
Under the terms, incoming payments are allocated first to collection fees including applicable lump sums, and then to the agreed interest. The client's items follow: court fees, legal fees and principal. The contractual and legal classification of the particular case remains relevant.
“No success commission on principal” therefore does not mean that every partial payment is immediately paid out to you in full. Ask for the opening balance, payment received, allocation and remaining balance. These four figures explain the movement.
How can you check a settlement statement?
Reconcile the payment overview with the case file. Each actual payment should be identifiable by date and amount. Ask for a separate breakdown showing where it was allocated and what remains outstanding for your claim.
- Does the opening balance match the handed-over and updated claim?
- Have credit notes and direct payments been included?
- Are interest periods and cost items identifiable?
- Can an actual payout be distinguished from a statement of amounts owed?
- Is the remaining balance understandable after the posting?
This checklist is an organisational recommendation. Discuss case-specific tax treatment and bookkeeping with your accounts team or tax adviser.
What if the customer pays you directly?
Report a direct payment after handover promptly through the platform, including its date, amount and reference. The terms contain reimbursement obligations for assigned collection costs and interest as well as obligations concerning their pursuit.
Do not independently mark the case as completed without reconciling the receipt. Do not waive items assigned to incaseof.law without clarifying the engagement and assignment. This also matters when the customer transfers only the original invoice amount.
Which situations can create additional costs?
Failure to meet acceptance requirements, incorrect information and cancellation may have contractual consequences. Court steps and separately instructed lawyers also generate their own costs. The pricing page and terms explain these distinctions.
Full reimbursement also depends on enforceability and recoverability. Including an item in an application does not mean that money has been recovered. Keep the engagement, approvals and statements together.
Related topics
Sources and basis
Content reviewed on 23 September 2026. Procedural information and our contractual terms are separate foundations. The individual case remains decisive.
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