Block transfer query

Hi all,

I have just taken a block transfer of cases from another IP (the vast majority of which are IVAs).

The transfer was by way of a court order - one of the provisions was that all creditors be written to within 28 days (this has already been done) regarding the change of office holder.

The issue I'd like to put to the forum is would it be reasonable to charge for the letters sent - the court order made no provision for the costs of carrying out this work

If this can be done, what would be a resonable charge (e.g. £5 per letter) including postage at cost, would this be regarded as a Cat 2 disbursement?

Any advice greatly appreciated.
  • Have a look at SIP9, it couldn't be cat 1 as it isn't specific expenditure paid to an independent third party; so if it is a disbursement it must be cat 2.

    If you want to charge cat 2 expenses you will need to look at the terms of the fee basis in the original VA (including mods). If cat 2 are allowed then there must be a reasonable basis for the charge ie the cost of the paper, the printing, the postage etc. To be clear, you can't include any element of time spent dealing with the letters which would be remuneration.

    Maybe something to address in the court order next time?
  • To clarify, if the fees are based on time costs you can clearly draw your time costs for dealing with the letters. If your fees are fixed or on a percentage of realisations you are not.

    If you seek to recover the costs by way of a disbursement you are not able to build an element of time cost into a disbursement calculation.