If you are a creditor of an insolvent company or a bankruptcy, Oliver Elliot can help you address your claim and concerns arising from the insolvency.
Oliver Elliot’s Insolvency Practitioner Disbursement Policy
Insolvency Practitioner Disbursement Recovery Policy for Oliver Elliot is guided by Best Practice which classifies expenses into 2 categories: Category 1 and Category disbursements. This has due regard for Statement of Insolvency Practice Number 9 (Payments To Insolvency Office Holders And Their Associates From An Estate) (“SIP 9”). Prior to 1 April 2021 there was an earlier version of Statement of Insolvency Practice Number 9.
An Insolvency Practitioner is required to provide creditors with details of the expenses that are considered to be, or are likely to be, incurred by an Insolvent Estate. These may include expenses such as agent’s costs for assisting in the disposal and realisation of the company’s physical assets or other routine expenses associated with an insolvency case such as statutory advertising costs or the office holder’s specific penalty bond.
There are two categories of expenses. There are Category 1 Expenses being paid to persons providing services who are not an associate of the office holder. These expenses can be paid without prior approval from creditors.
Expenses and Category 1 expenses do not have to be approved, but when reporting to the creditors’ committee and creditors during the course of the administration of the Insolvent Estate, the actual expenses incurred can be compared with the original estimate provided. Material differences then can be explained (e.g. where legal costs rise due to escalated recovery action).
Category 1 expenses are payments to independent third parties where there is a specific expenditure directly referable to the appointment.
Category 2 expenses require approval from creditors. These are costs that are directly referable to the appointment in question but are not payments that are made to an independent third party and may include shared costs that can be allocated to the appointment but needs to be explained as to the basis on which the expense is being charged to the estate. Any Category 2 expenses which Oliver Elliot proposes to charge are reflected in the expenses detailed below.
Oliver Elliot will usually seek approval to charge Category 2 expenses at the same time as seeking authorisation for the basis of remuneration.
Insolvency Practitioner Category 1 expenses
These are defined as payments that are made directly by Oliver Elliot in relation to a specific case and include such items as statutory bonding, advertising and insurance, amongst others.
These expenses will be recovered by Oliver Elliot from realisations at the exact amount expended. These expenses are not subject to approval.
Insolvency Practitioner Category 2 expenses
These are defined as shared or allocated costs of an incidental nature such as an amount charged for use of the office holder’s facilities or supplies and may include photocopying, stationery and storage costs.
The following items of expenditure are chargeable to the case (subject to approval):
- Internal meeting room for statutory meetings £100.00 per meeting
- Car mileage £0.45 per mile
- Storage of books and records and other files £80.00 per archive box per year
- Photocopying/printing £0.15 per sheet
- Fax £0.40 per sheet
Any queries with regard to the disbursement policy should be submitted to firstname.lastname@example.org.