Fees before Insolvency

Until we have worked out the best solution to deal with your problem there are no costs at all. It may take a 5 minute conversation, we may need to spend a day with you at your home or office going through reams of paper with you, but we do not charge you anything until we are confident that we have the right answer to your money problems. As we do not charge you, if you are a long way away from our offices or homes we may suggest that we meet somewhere in the middle if we cannot sort things out over the telephone. From our experience we find people prefer to deal with one contact throughout, so the person you speak to on the phone to make an appointment will almost certainly be the person you meet. That way you should not have to repeat everything.

Once we know what has to be done, we will tell you the actual costs.  These will vary by the type of case and the amount of work which will be needed, but this table gives you an idea of the fees.  Sometimes fees can be reduced in special circumstances.

Individual Voluntary Arrangements£1,500 to £4,000 (no VAT) plus disbursements
An extra fee is payable if we need to apply for an interim order (there is VAT on this)
1 monthly contribution in advance
Rest drawn from future contributions
Company Voluntary Arrangements£3,500 to £20,000 (no VAT) plus disbursements
1 monthly contribution in advance
Rest drawn from future contributions
Partnership Voluntary Arrangements£3,500 to £20,000 (no VAT) plus disbursements
1 monthly contribution in advance
Rest drawn from future contributions
Creditors' Voluntary Liquidations£4,000 to £7,500 plus VAT and disbursements
Usually part of the fee can be paid after liquidation from assets realised
Administrations£3,500 to £5,000 plus VAT and disbursements

The reason for giving a range is that whilst there is the same amount of basic work in each type of case, if there are a lot of creditors we are likely to spend more time.  Similarly, preparing an IVA proposal for someone who runs their own business will take longer than for someone else who is employed and overspent on their credit cards.  Whilst we usually hold virtual meetings over the internet, if we have to travel a long way for a physical meeting we will build this in to our initial quote.  Once we have quoted a fee, we will stick to it – this means that if you phone us a lot it does not increase the costs, and if we have to adjourn a meeting the fee will also not go up.

In addition to these fees for our work we may have to pay out costs such as meeting room hire if we have to hold a physical meeting of creditors, search fees (at Companies House or the Land Registry for instance), advertising if the law says we have to, and the costs of telling the people and companies you owe money what is happening. Carmichael & Co is a firm of Licensed Insolvency Practitioners, and as a point of principle only charge back what we pay. Photocopying a black and white A4 sheet costs us about a penny, so that is what we charge rather than 10p we may have to pay someone else to do it. We know of one large firm which used to charge 50p.

We will give you a rough idea of what these costs will be when we tell you our fees, though these may change (we were quoted between £50 and £200 for a meeting room for the afternoon recently, and until we know when a meeting is to take place we cannot book it).

In most instances, these fees will be paid from the money paid into the insolvency, so will need to be agreed by the creditors. We generally ask for our estimated out-of-pocket expenses to be paid in advance.

If you are proposing a Voluntary Arrangement we expect to be paid an equivalent of month’s contributions in advance.  This generally covers our out-of-pocket expenses, and also shows the creditors that you can really afford what you are offering.

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