Why is there so much mystery around Insolvency Practitioner Fees?

(MoneyNewsWire.Net, July 15, 2015 ) London, UK -- In recent years the profession has made great strides in improving transparency and the Statement of Insolvency Practice 9 (“SIP9″) gives best practice guidance to Insolvency Practitioners to ensure that creditors can make an informed decision on whether the fees charged reflect the complexity of the work undertaken and the results achieved by the appointed practitioners.

Creditors can request (and should be provided with) a break down of time charged, with supporting narrative, where they require further information on the work undertaken. This should not be an area of conflict but should be an opportunity for Insolvency Practitioners to engage with creditors and explain and justify the work undertaken and indeed the quality of that work. IP’s are sometimes guilty of assuming that creditors understand the role of an IP and experience tells me that is not the case and if, as a profession, we are not willing to explain our role then mistrust of the profession will continue. I would always encourage creditors to pick up the phone or arrange an appointment and seek clarification, as again experience tells me that a chain of e-mails can soon get out of control and create more problems than are solved.

It is easy for example to look at charge-out rates for insolvency professionals and feel outrage, especially if you are a creditor who is standing to lose a large sum from the case in question. However the devil is in the detail, and it is essential to feel comfortable that staff of the correct experience are dealing with different tasks within the case to ensure that value for money is being provided. The average chargeout rate over the case should give a more realistic assessment and give comfort that the correct level of staff are working on the case. Clearly it would be inappropriate for an experienced and qualified Insolvency Practitioner to be undertaking routine work and conversely it could be costly for creditors if strategic decisions are being taken by inexperienced staff.

Insolvency Practitioners “want to be loved” and so I would encourage creditors to pick up the telephone and engage with the appointment taker and lets remove the mystic surrounding Insolvency fees.

Wilson field Ltd

Wilson Field

0114 2356780

contactus@wilsonfield.co.uk

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