Insolvency Practitioner and BM Advisory Partner Andy Pear explains the new insolvency fee transparency rules to legal firm Kain Knight
New ‘insolvency fee transparency rules’ laid in Parliament on 1st October 2015 require insolvency practitioners to provide ‘written fee estimates’ in advance to creditors. Estimated fees are to be calculated on a time cost basis.
In an article published in legal firm Kain Knight’s February Newsletter, Insolvency Practitioner Andy Pear explains: “The intention of the legislation is to provide greater transparency to unsecured creditors. In addition, it will serve to provide greater control over the fees charged by insolvency practitioners. The legislation also seeks to encourage higher levels of creditor engagement in the fee approval process, whilst at the same time giving creditors early warning in situations where costs are increasing beyond the original estimates. “
“The new Rules present new territory for both insolvency practitioners and creditors alike. At the moment the impact on the insolvency profession and creditor engagement is uncertain.”
About the author: Andy is a licensed insolvency practitioner and a partner at BM Advisory Partner. He is known for his extensive expertise in a wide range of industries with recent focus on retail, manufacturing, media, professional practices and the licensed trade.