Changes to Insolvency Fees
In 2014 the Insolvency Service agreed it would carry out an evaluation of the insolvency fees with a view to designing a new, more transparent structure that would place the agency on a more maintainable economic platform. The changes come into force on 21 July 2016.
As with the current structure, the deposit and administration fee will remain, and a new Official Receiver’s General Fee will be introduced. This will replace the current Secretary of State fee, which will no longer apply to cases where orders are made on or following the commencement date.
- The General Fee will be charged on all cases and will be set at a fixed level;
- The Trustee/liquidator fee will be charged on assets realised by the Official Receiver when carrying out the duties of trustee or liquidator;
- Two new fees relating to the dismissal/withdrawal of petitions and setting up an Income Payments Agreement/Order will be introduced; and
- The distribution fee charged when a distribution is made to creditors by the Official Receiver will remain the same
The fees are as follows:
| Deposit / Fee rate | Current amount | New Amount | Difference | Notes |
| Bankruptcy deposit (debtors case) | £525 | £550 | £25 | Not changed since 2011 |
| Bankruptcy deposit (creditors case) | £825 | £990 | £165 | |
| Company winding up deposit | £1,350 | £1,600 | £250 | |
| Bankruptcy administration fee (debtors case) | £1,990 | £1,990 | No change | |
| Bankruptcy administration fee (creditors case) | £1,990 | £2,775 | £785 | |
| Company administration fee | £2,520 | £5,000 | £2,480 | |
| General fee | Up to £80,000 – Varies from case to case, charged on a sliding scale on realisation of all assets in the case | £6,000 | Up to -£74,000 | Effectively replaces the Secretary of State fee but charged at the start of the case and one fixed fee |
| Trustee/liquidator Fee | – | 15% of assets realised | New Fee | New Fee |
| Fee for setting up an Income payments agreement/order | – | £150 | New Fee | New Fee |
| Dismissed petitions fee | – | £50 | New Fee | New Fee |
For further information on the changes to insolvency fees or for any insolvency enquiry please contact Associate Solicitor, Lauren Hartigan-Pritchard on 01905 677051 or lhartiganpritchard@thursfields.co.uk
