Fees after Insolvency (pre October 2015)

The rules on charging fees changed on 1 October 2015.  This page relates to cases where Marc Landsman was appointed before this date.  If you are looking for general information where he was appointed after this, look here.

Once we have been formally appointed by the creditors, we charge fees for doing all the work we have to.  The work we have to do is slightly different in each type of insolvency, but can include:
Administration and Planning
Preparing the documents and dealing with the formal aspects of the appointment, statutory notifications and advertising, preparing documentation required, dealing with some of the normal letters; phone calls and emails, keeping case files, review and storage, case bordereau, case planning and administration, preparing certain reports to creditors, convening and holding meetings of creditors, maintaining and managing the cashbook and bank account, ensuring statutory lodgements and tax lodgement obligations are met.
Creditors
Dealing with creditors, preparing certain reports to creditors, maintaining creditor information, reviewing and adjudicating on claims received from them.
Investigations
Review and storage of books and records, look at suspicious transactions, review books and records to identify any transactions or actions which may be taken against a third-party to get back money for the creditors.
Realisation of Assets
Corresponding with debtors and attempting to collect in the book debts, liaising with the former bank regarding the closure of the account if it was in credit, selling other assets with the help of appropriate agents.

We also have to pay out-of-pocket expenses like we do before the meetings, and expect to be paid back for these. There is always an insurance premium (called the bordereau), sometimes more advertising, and other costs of sending letters. If we have to use an agent (such as an accountant, solicitor or auctioneer) we also have to pay them.

We normally seek our fees as follows:

Individual Voluntary ArrangementsPercentage of assets realised
(Usually about £1,000 - £2,000 per year)
Company Voluntary ArrangementsPercentage of assets realised
(Usually about £2,000 - £5,000 per year)
Partnership Voluntary ArrangementsPercentage of assets realised
(Usually about £2,000 - £5,000 per year)
LiquidationsEither on amount of the time taken or scale rate
BankruptcyEither on amount of the time taken or scale rate
AdministrationsDepends on the amount of time taken

If we are being paid on a time costs basis we do not expect our fees to always be paid in full. If the assets are not enough to pay our fees, unless we have undertaken investigations for which the creditors have agreed a specific amount, we do not ask them to pay any more money – they have lost enough already.

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