IRRV Alert - week ending 30th October 2015
Information Letters
News
Consultations
Increase/revised fees in bankruptcy and company insolvency
Changes to Insolvency Service fees
From:
First published:
23 October 2015
Revised fees for bankruptcies and company insolvencies will come into force on 16 November 2015.
Fees and charges are reviewed annually.
The fee changes reduce the amount recovered from realisation of assets while increasing the initial fee paid.
The fee paid by individuals petitioning for their own bankruptcy is not being changed. The impact of recent changes to the Debt Relief Order regime and proposals to take debtor’s petitions out of the court will be analysed before considering increases in the debtor’s petition deposit.
The revised fee structure ensures that the cost of insolvency processes is paid for by those who use them in line with Managing Public Money guidelines.
|
Fee |
Current £ |
Proposed £ |
% change |
|---|---|---|---|
|
Debtors (own) bankruptcy deposit |
525 |
no change |
N/A |
|
Creditors’ bankruptcy deposit petition |
750 |
825 |
10% |
|
Bankruptcy administration fee (paid from assets in cases via the sliding scale as described below) |
1850 |
1990 |
7.6% |
|
Company winding up deposit |
1250 |
1350 |
8% |
|
Company winding up administration fee |
2400 |
2520 |
5% |
- A deposit is paid when an insolvency petition is presented to help pay for the costs of the administration of the case.
- The case administration fee is a fee charged by the Insolvency Service in every bankruptcy and winding up case on the making of a bankruptcy or winding up order. The case administration fee is partly discharged by the deposit paid on presentation of the petition.
|
Applicable Secretary of State Fee |
Current |
Proposed |
|---|---|---|
|
First £2000 (£2,500 company) |
0% |
No change |
|
Next £1700 |
100% |
75% |
|
Next £1500 |
75% |
50% |
|
Next £396,000 |
15% |
No change |
|
Remainder* |
1% |
No change |
*Maximum total payable fee £80,000 – no change
- The Secretary of State fee is a charge on assets realised in cases and contributes towards the costs of administering cases. Such cases are charged on a sliding scale and are capped.
The changes will be subject to Parliamentary scrutiny.