It has recently been reported that the raft of fees applied by the Insolvency Service, to personal and company insolvencies, are changing from 21 July 2016.
The petition deposits (the amount paid up-front to obtain a bankruptcy or winding-up order) will be increasing in all cases where the petition is lodged with the Adjudicator, or filed at Court, on or after 21 July 2016. Additionally, the Official Receiver’s administration fee will increase by £785 (from £1,990 to £2,775) when a creditor petition for an individual’s bankruptcy and the equivalent fee will also rise by £2,480 (from £2,520 to £5,000) when companies are wound up.
Another significant shift is in the introduction of a new Official Receiver’s general fee, which is a fixed single amount brought in to replace the existing Secretary of State fees. This will apply to all types of case, where an order is made on or after 21 July 2016. The fee will be initially set at £6,000 (which will go towards meeting the costs of the Official Receiver’s operations) and takes over from the Secretary of State fees, which was charged as a percentage of assets realised in an insolvent estate (up to a maximum of £80,000). The hope is that on cases with significant realisations there should be more funds available to return to creditors.
If you or your business are in the unfortunate situation of being a creditor in an insolvency process – or if you are struggling to manage your own debts – then it may be appropriate to seek professional advice. Elwell Watchorn Saxton offers Corporate and Individual services to provide advice at difficult times and discuss the options available in relation to your own or your business’s finances. Please contact us if you would like an initial consultation, free of charge.