Overview Legal Fees In Liquidation
The default position is that legal fees in Liquidation are subject to detailed assessment.
A Liquidator however can and more often than not will pay the legal fees of the insolvent estate’s own solicitors by way of agreement.
Default Detailed Assessment Provision
The default detailed assessment provisions set out in the Insolvency (England and Wales) Rules 2016 are as follows:
- Rule 12.42 of the Insolvency (England and Wales) Rules 2016 provides that where the costs of any person are payable as an expense out of the insolvent estate, the amount payable must be decided by detailed assessment unless agreed between the office-holder and the person entitled to payment.
- Rule 12.43(4) of the Insolvency (England and Wales) Rules 2016 2016, the detailed assessment proceedings are required to be commenced within 3 months of a request being made, or within such further time as the court, on application, may permit.