Fees are unfortunately a fact of life. There is a lot of work to be carried out when dealing with any type of insolvency, and we have to charge to do it. There are official guidelines set down, and these are included in the leaflets on this page.
The information in these leaflets is the formal information we have to give you. They include the official wording required by our licensing body (ICAEW) as well as sections from the Insolvency Act and Insolvency Rules covering fees and how to raise queries or object to the amount we are charging. They also include examples of our disbursements (or the amounts we have to spend to deal with a case).
Please note that different rules apply to each type of insolvency, though the general principles are the same.
In general terms, after the formal insolvency, we normally charge on a fixed and percentage basis or based on the time spent dealing with the case. Before the formal insolvency, we usually charge a fixed fee. Please follow the links for more information. The basis on which we charge is usually agreed by the creditors.
All disbursements are charged to a case at the same amount as we pay for them (specific advertising or insurance premiums for example), or as close as possible so sometimes use an average of what we pay (if we buy 2 boxes of envelopes a month apart we cannot be sure which box we are using). We do not own an advertising agency, storage facility, nor an insurance broker so we do not make any ‘hidden’ profits. We do not have any meeting rooms of our own, so if we need to hold a formal physical meeting meeting of creditors or shareholders (one which people can potentially sit down in the same room with us, rather than over the internet or telephone) we pass on the cost. Where we use our cars, we charge at the amount HM Revenue & Customs allows for tax as it is fair and makes doing our personal tax returns easier. If we have to stay in a hotel, the maximum we will pay (including meals) is the same as the charge for one hour of that person’s time (between £95 and £350, though it is usually less than £95 and often free of charge if we have family living near the meeting!).
If there is not enough money to pay us, unless we have agreed in advance with specific creditors that they will pay towards our fees (which is rare) we do not get paid. If there is not enough to pay our disbursements, we will end up having paid to do the work.
The leaflets also set out the formal way to ask for more information and object to fees. The informal version is for you to pick up the phone and ask us – unfortunately some of the work we do has no benefit to creditors in a case (though investigations may stop a director or bankrupt taking credit from someone else in the future) but we are always willing to explain and justify our fees – the annual or final reports will always give information about this.
To read the official leaflets about fees in Administration, Bankruptcy, Liquidations or Voluntary Arrangements please click the links below: