Insolvency Practitioner Disbursement Policy
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 (“SIP 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.
Expenses and Category 1 disbursements 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 disbursements are payments to independent third parties where there is a specific expenditure directly referable to the appointment.
Category 2 disbursements require approval from creditors. These are costs which are directly referable to the appointment in question but are not payments which are made to an independent third party and may include shared or allocated costs that can be allocated to the appointment on a proper and reasonable basis such as internal room hire, document storage or business mileage. Any Category 2 disbursements which Oliver Elliot proposes to charge are reflected in the expenses detailed below.
Oliver Elliot will usually seek approval to charge Category 2 disbursements at the same time as seeking authorisation for the basis of remuneration.
Insolvency Practitioner Category 1 disbursements
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 disbursements will be recovered by Oliver Elliot from realisations at the exact amount expended. These disbursements are not subject to approval.
Insolvency Practitioner Category 2 disbursements
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, stationary 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 [email protected]