Our Fees

Carmichael & Co does not charge any fees for meetings or conversations whilst we work out the best way forward for you.

The pages in this section show approximate fees for each type of insolvency we regularly deal with once we know how to solve your financial problem.

In most types of insolvency there is work to be done before we are formally appointed, and more work after. Generally the fee for the early work is agreed by the debtor (the person or company which owes the money). When quoting our fees we will take into account how many creditors (people or companies owed money) there are as it takes time to write to them and answer telephone calls, whether the meeting can be held in our offices or if travelling time will be needed, and how complicated we expect the initial reports to be. This is why there is such a difference between the upper and lower fee estimates. As an example, writing a Voluntary Arrangement proposal for a football club with 860 shareholders, 110 creditors, fans and special rules required by the Football Association was a lot more complicated and tok far longer to write so was more expensive than an estate agent with 1 shareholder and 50 creditors even though the debts of both were about the same.

We appreciate that in most cases you will not be able to pay the fee in advance & we will often ask the creditors to allow it to be paid from the assets in the insolvency, though we do like to be paid our out of pocket expenses in advance.

The fees for the work after the formal insolvency meetings are agreed by the creditors.

Most people going into Individual Voluntary Arrangements owe most of their debts to the banks and credit card companies.  Over the years they have decided that the want Insolvency Practitioners to be paid as a percentage of the money paid into the Individual Voluntary Arrangement so we work out how much work will need to be done, then calculate this as a percentage of the expected realisations.   We ask for the same type of fee in Company or Partnership Voluntary Arrangements since the work involved is similar so it seems the fairest way to do things.  With the example of the estate agent and football club, the only real difference in the work to be done after agreement was how many letters needed to be sent out, so the fee as Supervisor was expected to be about the same for each of them.

Until 30 September 2015 we asked to be paid for other types of cases based on the amount of time spent.  This was the way that most firms were paid.

On 1 October 2015 the rules on charging fees changed.  If we want to be paid based on the time spent, it now needs to be agreed in advance, with a detailed budget (that cannot be exceeded without agreement).   The difficulty with this is that until we have understood everything that needs to be done we cannot prepare the budget, by which time we have already done a lot of the work.  The level of information that we then have to provide (and internal monitoring to make sure that we do not go over the budget) means that we have to spend more time without any benefit to creditors (or to us!).

We have therefore decided that we will ask to charge a fixed fee for the statutory and routine work, initial investigations and generally dealing with creditors – this fee will be calculated at the beginning of the case and will not change (though it will be a different amount for each case).  We will also be asking to charge a percentage of the asset realisations and a fee for processing dividends to creditors.

The new fee structure has been set to make it clearer for creditors and easier for us to calculate.  Since there will be time and cost savings to us, we would expect to be able to pass these savings on by way of lower fixed fees.  The figures we used to calculate the fixed fees were based on recent cases wefinished dealing with – we expect to refine our figures as we go along, but this will not change any fees alteady agreed.

We believe that our fees are about the same as other insolvency practitioners, the difference is that we tell you on our web site whereas some may take longer.

Leaflets and pages about fees

Look here for the formal Fee Leaflets

Pages to read about our fees

Read this page for information about what we charge before a formal insolvency

This page tells you about our fees after Insolvency (if we were appointed after 1 October 2015)

and this one explains for cases before that

These are our current and old hourly charge out rates

and this page explains about the percentages we may use to calculate our fees

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