Bankruptcy and Insolvency Practitioner

[DCASTLE]

Hello everyone,

I was wondering if anyone is familiar with the process of claiming debts from an Insolvency Practitioner (IP).

I keep being asked to provide different documents by the IP from time to time and I'm wondering if that's normal.

Many thanks!

[atticus]

He wants you to prove your claim, and therefore to provide clear evidence of the debtor's liability to you.

If want further clarification, please provide some details to enble the situation to be understood.

[DCASTLE]

Thank you for your comment.

The Insolvency Practitioner (IP) gave me a claim form to fill out. I sent it back with all my solicitor's invoices and the judgment.

The next day, the IP asked for a "detailed statement". I didn't know what that was, so I asked my solicitor. They never replied. I told the IP I didn't have one, and asked what to do. The IP didn't respond.

Six weeks later, the IP asked for a "statement of costs". Again, I didn't know what this was. I checked my solicitor's files and sent a "budget costs" document I found. The IP said it was wrong. I contacted my solicitor, then I was sent a "costs update" which was filed with the court 5 months before the hearing. I sent that to the IP but I was told it was also wrong.

The IP emailed me an explanation of what they needed and told me to forward it to my solicitor to clear things up. My solicitor then sent me budget costs and said the IP was mistaken - there was no "statement of costs" because it was a multi-track case. They said the budget was made a year before trial. I forwarded all this to the IP. When I asked if it was enough, the IP said they'd review it after Christmas.

My questions are:

1. Why did the IP repeatedly ask for additional documentation after I submitted my initial claim, rather than providing a complete list of requirements at the outset?
2. Since the judge has already ordered the claimant to pay my legal costs, what is the purpose of requesting a "detailed statement" and "statement of costs"?

Because of this, I've had to pause my complaint against my solicitor for now. I don't know what else the IP will ask for, and I might still need my solicitor's help.

[atticus]

2. so as to be able to assess the amount of the costs to be paid.

[DCASTLE]

When the IP first requested a statement of costs, I sent the costs budget. I was informed this was the wrong document.

I then forwarded the IP's email to my solicitor. The solicitor replied, re-sending the same costs budget and noting that this is a multi-track case (for which a budget is required). I forwarded this response and attachment to the IP.

The IP has now said she will review the documents.

Given my lack of expertise, I am trying to understand: is the IP mistaken in her request, or have my solicitor and I misunderstood what is required?

[atticus]

A budget is anticipated or expected costs. The IP is entitled to know the costs actually incurred, looking forward.

Can you send the bills you have paid?

[DCASTLE]

I have already provided the IP with every legal cost invoice pertaining to my case. These were submitted alongside my initial claim form. Despite this, the issue of costs continues to be raised. I am unsure what further documentation I can possibly supply.

[DCASTLE]

Hello all,

This is somewhat urgent, and I wonder if anyone knows the answers.

I received an email from the Insolvency Practitioner (IP) today, and they are still insisting on a copy of the Statement of Costs. They have not accepted any of the other evidence or documents provided by my solicitor.

My first question is: Does every court case require a Statement of Costs before the judge conducts the final hearing?

I am trying to understand why my case might not have had one. My solicitor explained to the IP that it was a multi-track case. Does that mean a multi-track case does not need a Statement of Costs?

Secondly, in the final hearing, the judge’s written judgment clearly stated that the claimant must pay me a specific amount—which was described as 70% of my legal costs—by a certain date. If the judge specified an amount as 70% of my costs, surely he must have seen some document or statement detailing the total legal costs. What kind of document would that typically be?

I am so puzzled and frustrated here because I have already sent the IP copies of all my legal fee invoices, but they will not accept these. Why must my claim rely on a Statement of Costs rather than the actual invoices?

Thirdly, I find the behaviour of this particular IP rather suspicious. They were appointed by the other respondents in my case—who, although also defendants, are effectively my adversaries. I suspect the IP is being difficult with me because of the conflict between me and the other respondents. I want to believe the IP is acting professionally, but I cannot help remaining cautious.

If a Statement of Costs is important and required in every case, how could my solicitor not have produced one for the court? And why would the judge or court not have requested it before the final hearing? The entire process seems never-ending and, in my opinion, is only getting worse.

Any advice or comments would be greatly appreciated, as always.

Many thanks.

[atticus]

Q1. Not every case. Statements of costs are prepared for summary assessment, which is usually carried out if costs are ordered at tge end of a Fast Track trial or a hearing lasting no more than one day. https://www.justice.gov.uk/courts/pr...costs2#para9.1

Q2. This means 70% of the costs assessed, either on summary assessment or a later detailed assessment.

Q4. It is not for the judge to request a statement of costs if one is required.

[DCASTLE]

Thank you very much for answering my questions.

My next question is: what are my options while the Insolvency Practitioner (IP) continues to request a Statement of Costs, given that one does not exist?

The solicitor firm has been informed of the required documents, but they remain unable to provide what the IP is asking for. Is there any alternative document or comparable information that could fulfil the IP's requirement?

Thank you again for your time and assistance.

[atticus]

I think that you are going to need professional assistance in dealing with this IP, maybe from a new solicitor if your existing one is ineffective.

[DCASTLE]

Thanks for the advice.

Having been let down by two different solicitor firms in the past, do you have any recommendations for a reliable and competent firm please?

[atticus]

Rough location?

[DCASTLE]

Birmingham/Midlands, thanks!

[atticus]

I have no particular knowledge of firms in that region. I suggest that you research firms in Birmingham or the larger towns that have 5 to 15 partners including lawyers specialising in insolvency and litigation. You probably want to avoid small firms and the really big ones.