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Hello all,
I hope you don’t mind me getting straight to the point.
I am having difficulty completing a proof of debt form and am hoping someone here is familiar with the process of making a claim with an insolvency practitioner.
Briefly, three years ago, I was wrongly sued by a shareholder. The petition went to trial, and the judge dismissed the case. The judge's order required the petitioner to pay my legal costs on the standard basis up to a specific date, and on an indemnity basis thereafter, to be subject to detailed assessment if not agreed. The order also included a clause for the petitioner to make a payment on account of £99,000 (70% of my costs) by a specific deadline. Two months after the judgment, the petitioner declared bankruptcy. I now need to register as a creditor with the insolvency practitioner.
My question concerns the 'total amount of claim' on the proof of debt form. My total legal costs are £146,000. To pay these, I took out personal loans and used credit cards, accruing approximately £14,000 in interest (£6,500 from loans and £7,500 from credit cards).
Should I claim for £146,000 (legal costs only) or am I allowed to include the £14,000 in interest from the loans and credit cards?
When I first contacted the IP, I was told I could only claim the amount awarded by the court. However, the judgment did not specify a final figure. I subsequently emailed the IP, stating my intention to claim for all costs, including the interest. The IP replied, pointing out that the costs order was "subject to detailed assessment if not agreed," and asked if this assessment had taken place.
The petitioner never discussed the costs. He made a settlement offer of £40,000, which I rejected, and then declared bankruptcy. The situation is incredibly frustrating.
My key questions are:
1. What is a "detailed assessment"?
2. How do I obtain one, especially now that the petitioner is bankrupt?
If anyone is familiar with this process, your advice would be greatly appreciated.
Many thanks!
I hope you don’t mind me getting straight to the point.
I am having difficulty completing a proof of debt form and am hoping someone here is familiar with the process of making a claim with an insolvency practitioner.
Briefly, three years ago, I was wrongly sued by a shareholder. The petition went to trial, and the judge dismissed the case. The judge's order required the petitioner to pay my legal costs on the standard basis up to a specific date, and on an indemnity basis thereafter, to be subject to detailed assessment if not agreed. The order also included a clause for the petitioner to make a payment on account of £99,000 (70% of my costs) by a specific deadline. Two months after the judgment, the petitioner declared bankruptcy. I now need to register as a creditor with the insolvency practitioner.
My question concerns the 'total amount of claim' on the proof of debt form. My total legal costs are £146,000. To pay these, I took out personal loans and used credit cards, accruing approximately £14,000 in interest (£6,500 from loans and £7,500 from credit cards).
Should I claim for £146,000 (legal costs only) or am I allowed to include the £14,000 in interest from the loans and credit cards?
When I first contacted the IP, I was told I could only claim the amount awarded by the court. However, the judgment did not specify a final figure. I subsequently emailed the IP, stating my intention to claim for all costs, including the interest. The IP replied, pointing out that the costs order was "subject to detailed assessment if not agreed," and asked if this assessment had taken place.
The petitioner never discussed the costs. He made a settlement offer of £40,000, which I rejected, and then declared bankruptcy. The situation is incredibly frustrating.
My key questions are:
1. What is a "detailed assessment"?
2. How do I obtain one, especially now that the petitioner is bankrupt?
If anyone is familiar with this process, your advice would be greatly appreciated.
Many thanks!
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