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Pricing Initiative for Insolvency Practitioners

Office holders will periodically have the need to instruct solicitors on discrete aspects of their cases, whether in relation to appointments, validity reviews, fee authorisation, indemnities, property related aspects or otherwise. 

Ashfords can help, whether dealing with these aspects alone (for example whether there are conflict issues with an existing adviser) or as part of a wider scope of instructions. We offer a competitive pricing structure to give you certainty, and to assist with meeting your regulatory obligations to justify using suitable lawyers on particular elements of a case at appropriate cost.

We routinely agree fixed fees for the following discrete instructions/applications, predominantly under the Insolvency Act 1986 and Insolvency (England & Wales) Rules 2016:

Appointment & fees

  • Office holder’s remuneration application under r18.24 – 18.29
  • Reviewing the validity of an office holder’s appointment
  • Reviewing the validity of a creditor’s security (either connected with appointment validity or prior to distribution)
  • Application for a block transfer order under r12.36
  • Bespoke deed of indemnity from the appointer in respect of a receiver appointed under a fixed charge or pursuant to the Law of Property Act 1925
  • Bespoke deed of indemnity from a shareholder in respect of a members’ voluntary liquidation

Company & directors

  • Application for the extension of an administration pursuant to para 76(2)(a) Sch B1
  • Rectifying the register at Companies House under section 1093 of the Companies Act 2006
  • Drafting a settlement agreement such as in relation to an overdrawn directors’ loan account
  • Default winding up petition following the failure of a CVA (s.7(4)(b))
  • Application to move from administration to compulsory winding up, to include the winding up petition and release from appointment as administrator

Bankruptcy

  • Possession and sale application in relation to a bankrupt’s property
  • Conveyancing for the sale of a residential property
  • Application for a restriction at HM Land Registry, including where the insolvent estate relates to a jointly owned property or to a corporate registered proprietor
  • Default bankruptcy application following the failure of an IVA (s.264(1)(c))
  • Drafting an Income Payment Agreement

Please complete the form below and we will be in touch with our indicative pricing list. For more information, contact a member of our Restructuring & Insolvency team.

Regulatory obligations as to professional adviser expenses

Office holders must ensure payments and expenses incurred on behalf of the insolvent estate are a fair and reasonable reflection of the work necessarily and properly undertaken. When reporting costs and expenses to creditors, legal fees must be justified whilst ensuring the right advisers are instructed. R3’s Guidance Note on SIP 9 sets out that reports should explain where any particular cost savings have been made in order to demonstrate value for money and provide the best possible return to creditors. Creditors should be satisfied that claims have been investigated and legal fees incurred in a proportionate way.

Case study 1: fee approval

We acted for an office holder on an urgent basis on an application for fee approval where funds in the estate were limited.

The initial request had gone to creditors at the outset of the matter but no creditors responded. The lack of approval was overlooked due to changes in the lead office holder. By the time the issue was identified, the office holder was out of time to complete a decision procedure for creditor approval of remuneration before the expiry of the 18 month deadline.

We prepared an application to Court for approval of the office holder’s remuneration, explaining the position. The Court was persuaded to deal with the application without the need for a hearing, and we charged a low fixed fee for this straightforward application, with approximately 3 weeks between initial instruction and conclusion.

Case study 2: amending the register at Companies House

We were recently instructed by joint liquidators who discovered some time after their appointment that there was an error in the resolution passed by shareholders that referred to the appointment of a sole liquidator, omitting mention of the other liquidator contrary to Form 600 filed with it. Companies House had not identified the discrepancy either. The liquidators endeavoured to file the corrected resolution but Companies House refused to rectify the register absent a court order.

We offered a fixed fee for two stages of work being:

  • Stage One: to review documents and correspondence with Companies House, advise and write to Companies House to persuade them to rectify the register without a court order
  • Stage Two: if necessary, to prepare an application to court to rectify the register.

We were successful at stage one of rectifying the register without the need for a court order and the matter was managed quickly and cost effectively.

Case study 3: deeds of indemnity

We regularly prepare bespoke deeds of indemnity for proposed appointments such as fixed charge receiver and MVL appointments, usually required to short order. An example is a deed of indemnity in respect of a series of linked appointments prepared within 48 hours of instruction to meet the appointment timetable, prepared at a low cost fixed fee. 

Case study 4: validity of security / appointment

We acted for a proposed fixed charge receiver, advising on the validity of the security pursuant to which the appointment was to be made, as well as the proposed appointment documents, turning the advice around quickly to enable the proposed receivers to meet the secured creditors’ desired appointment timetable.

PLEASE COMPLETE THE FORM BELOW AND WE WILL BE IN TOUCH WITH MORE INFORMATION ABOUT OUR PRICING

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