Independent audit achieves upto 25% repayment of Insolvency Practitioner fees.

"One of the largest full service law firms in the world" states that in the matter of their own and their Insolvency Practitioner clients fees:

"..................parties to costs assessment proceedings rarely obtain full recovery for their fees. They can typically expect to receive ............ a reduction of somewhere between 0-25%"

or in other words an admission that IP's and their solicitors habitually overcharge by upto 25% and just hope to get away with it.


HM Revenue & Customs letter to the same law firm:
"we can see no justification for costs of this magnitude" "HMRC are of the view your costs should be assessed by the Court, as a matter of principle and public interest"

pdf copy letter available for for download at http://www.box.net/shared/static/bvqk77kunk.pdf

NB: KPMG have still (Nov 2009) neither attempted to resolve the matter, nor explain the £60,000 fees that HMRC say they took relating relating to other estates, in clear and flagrant breach of the Insolvency legislation.

Tuesday, 17 November 2009

Office of Fair Trading investigates Insolvency Fees

On 12th November 2009, the OFT launched a "market study" into corporate insolvency:

"The study will look at the structure of the market, the appointment process for insolvency practitioners and any features in the market which could result in harm, such as higher fees or lower recovery rates for certain groups of creditors. It follows concerns raised within Government, including the Insolvency Service which is an executive agency of the Department for Business, Innovation and Skills, and the industry itself.
Clive Maxwell, OFT Senior Director of Services, said: 'We want to identify any potential problems within the corporate insolvency market to ensure that firms and practitioners are competing freely and that the market is working well for the end consumers. Efficient insolvency services are an important component of a modern market economy.'
The OFT will be speaking to key parties directly. Others who wish to make a submission should write to: Corporate Insolvency Market Study, Office of Fair Trading, Level 4C, Fleetbank House, 2-6 Salisbury Square, London EC4Y 8JX. Email corporateinsolvency@oft.gsi.gov.uk. "

On 19th November 2009 my 5 page initial submission was handed to the OFT.
A pdf copy is available for download at: http://www.box.net/shared/static/x9xjemovyy.pdf

and a copy of the covering letter to the Presidents of the various "Trade" Associations is at: http://www.box.net/shared/static/a7in2o9seq.pdf
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Thursday, 14 February 2008

What are IP's lawfully permitted fees and expense recoveries?

Fees are governed by "Statement of Insolvency Practice 9"- sip9 - which is downloadable from the Solicitors Regulation Authority as follows:
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