Our Fees Explained
Our costs are charged using hourly charge out rates. We have different grades of staff that we will utilise for different aspects of each assignment in which we are engaged. Our charge out rates are very competitive as a small company. We are happy to explain our hourly charge rates, however, they will be set out in our letter of engagement; we believe in complete transparency.
For the Trust Deed appointments we are engaged in our costs are straightforward as the fees are calculated on a set basis. For each Trust Deed we are engaged in we charge a set fee of £2,500.00. In some cases it can be less. In addition to this set fee, we charge 20% of what is realised during the lifetime of the Trust Deed.
As an example, if a client pays £200.00 per month over 48 months our fee for the lifetime of that assignment would be £4,420.00. This is £2,500.00 + £1,920.00 (20% of £9,600.00 – which is 48 payments of £200.00 per month).
For our Trust Deed clients, don’t worry, you will never receive an invoice from us, this is not a separate payment you are required to make. The payment of our fees is included in the monthly amount you are paying into your Trust Deed for the benefit of your creditors. As your payments are received, we collect the funds in an account that we hold in trust for the benefit of your creditors. Periodically, we will draw a fee for the work we have done and pay a ‘dividend’ to your creditors. This is all set out and explained in our welcome brochure.
For the Sequestration (Bankruptcy) appointments we are engaged in we charge our time based on our hourly chargeable rates. We charge our time for performing our work and we submit our fees for approval to the Accountant in Bankruptcy in each 12-month period of your Sequestration. The Accountant in Bankruptcy supervises all Sequestrations and Trust Deeds in Scotland. The Accountant in Bankruptcy will audit and determine an appropriate fee for us to be paid for the work we have done. We then send a note of that to you and your creditors before we are able to take payment. Both you and your creditors are able to consider the fee and if you wish to appeal it in any way that can be submitted to us and we will in turn let the Accountant in Bankruptcy know so that it can be appealed and reviewed.
We do not charge any fees for initial consultations, nor do we charge any fees in the event that you do not engage us following any initial consultations. Our charge out policies and rates per hour are explained at our initial meetings and a copy can be provided on request.
For further information, please contact us.