A client is entering into a CVL and the insolvency practioner has written to us requesting for quite a lot of information that will take several hours to colate.
In the past I have usually supplied the, what is usually, straight forward information that has been requested without charging for our time. This time due to the amount of information requested I feel a bit agrevied at doing this free of charge, even more so as he will be charging in excess of £4000 to the client. Am I entitled to charge the insolvency practioner for this work, or is this like responding to a proffesional clearance request, whereby we can't?
Any responses gladly recieved.
Replies (14)
Please login or register to join the discussion.
Id speak to the (ex) client in the first instance and see if they will cover it.
Unless the work was quick and simple I certainly wouldn't do it unless I was being paid either by the client or the IP.
Can you give an example of the type of question being asked which can’t be answered instantly by glancing at your working papers?
They have sent spreadsheets requesting detailed analysis of expenditure and movements that are way beyond the level of detail in our working.
The client has cancelled the cloud subscription anyway, which I have just found out. As such i have responded to them stating I cant provide the information requested as such.
I'd certainly be reverting back to the IP setting out what your charges are likely to be, for the work/time involved.
They either do want your assistance, or not. They will tell you, once they know what your requirements are.
You're not a charity, or, are you?
Did you not send the client to see the IP yourself.
Normally they are quite reasonable if you have passed the work to them and include a tickle in their fees for you sending the work doing statement of affairs etc.
Looking at your profile picture Glenn I suspect you may be geographically close to me, or at least were.
No, I didn't send the client to see the IP. Its a long story that I wont go into, but I am glad to see the back of him.
Well if you ever need a few decent IP contacts let me know as there are a few decent lads locally.
Clearly, unless you are legally obliged to provide the information then you may charge your reasonable costs.
You have answered my question more succinctly.
Is there a legal obligation to provide this information.
No because you say the information doesn’t exist and needs to be worked on. That’s just new work you are being asked to do, and of course you are entitled to be paid for doing it.
You should ask the person who's asking for it (and hope that they don't charge you for their answer!).
The IP will pay reasonable fees and add it to their charges
Absolutely as Insolvency Practitioners https://www.companyrescue.co.uk we would pay reasonable expenses. The problem is of course that there may not be enough funds in the case to actually cover them. Directors have a legal duty to cooperate with the liquidator but other professionals not necessarily.