There are many different ways to decide how much Carmichael & Co will charge for the work they carry out. Sometimes we charge a fixed fee, sometimes a percentage or asset realisations and dividends, sometimes based on the Schedule 6 Scale Rate and sometimes based on how long it takes.
Like all professional firms, Carmichael & Co sets out the hourly charge out rate based on the seniority and experience of the person doing the work. As we are a small firm, if it makes more sense for a ore experienced person to do the work whilst they deal with another part of the case they will charge at a lower rate than they would normally. This means that sometimes a manager will agree a claim from a creditor, but will charge about the same as if it was done by a junior member of the team.
If we are travelling and can combine two or more meetings, we split the time between them as well as charging a lot less for travelling than we would if sitting at a desk working on the case.
The hourly charge out rates are as follows:
|Other Senior Professionals|
|Assistants (inc secretarial)|
Whilst these seem high (though they are similar to other insolvency firms) if there are insufficient assets to pay the fees, Carmichael & Co will not be paid in full. We sometimes also end up not being paid our disbursements. At the time of writing two linked bankruptcy cases where fees were chargeable on time costs were closed in the last week. The average hourly rates which ‘should’ have been paid were £200 and £220. The actual hourly rates charged were £86 and £0, with Carmichael & Co having paid £223 to third parties. There are few other professions where you are expected to pay to do do the work!