The handling of insolvency matters in Legalsense differs from the handling of regular matters because a.o. the remuneration of the trustee/lawyer in an insolvency matter depends on a number of factors:
- The experience of the trustee/lawyer and the insolvency employees;
- The value and size of the inventory;
- The inventory factor.
The following settings are required for insolvency matters:
- The user must be activated as an insolvency lawyer or insolvency employee;
- The matter must be set to type 'Recofa'.
Changing the user
The user in question must be activated as insolvency lawyer or employee in 'Users':
In the case of an insolvency employee 'Is insolvency lawyer' needs to have value 'No'. A begin date must be specified for both insolvency lawyer and employee. The begin date determines the years of experience of the lawyer or employee and is important for the calculation of the experience factor and the associated recofa rate.
Setting up a matter
The moment a matter is marked as Recofa matter, a number of extra fields are shown and the pricing scheme is set to 'Recofa':
Inventory value and inventory cap
The inventory value determines the inventory factor and the inventory cap is the maximum amount that can be charged.
The inventory factor is based on the inventory value. An inventory value of € 30,000 yields an inventory factor of 1.1 (the inventory value is € 25,000 or more but less than € 50,000).
How is the rate of the lawyer/trustee or insolvency employee determined in Legalsense?
The lawyer's/trustee's rate is calculated as follows in Legalsense:
Recofa rate * experience factor * inventory factor = rate
As stipulated in the guidelines, the inventory factor depends on the inventory value. If the value of the inventory changes, this may result in an increase or decrease of the inventory factor. In this case the rate of the lawyer/trustee will be recalculated. This means that if hours have already been billed in an insolvency matter, these hours will be recalculated at the new rate and included in a subsequent invoice.
Billing in an insolvency matter
The method of billing in an insolvency matter differs from the method of billing in a regular matter. Legalsense's working method is that an invoice is generated in draft form (the advance payment on the salary) and sent to the court. When the invoice is paid, the invoice should be finalized.
Below is a representation of a draft invoice in an insolvency matter:
If an inventory cap has been set, it will never be possible to bill more than this amount.
In the example matter shown below, an inventory cap of € 5,000 has been specified, and the value of these hours is therefore capped at € 5,000.
The invoice will then show the following:
If the inventory cap were to be increased afterwards and therefore more time may be billed, this would have to be done manually.
Reporting of insolvency matters
If the matter type is 'Recofa' or 'Insolvency' (depending on your settings) is selected, an Insolvency Report button will become available:
Clicking this button will take you to the next screen:
Here you indicate the period on which you wish to report. It is possible to create a salary invoice simultaneously with the report. You can do this by placing a check mark at 'Create salary invoice'.