The Insolvency Service introduces changes to deposits made to initiate creditor bankruptcies and court-ordered liquidations.
The motion filing, the amount that must be paid upfront to seek an order, will increase in any case where a motion is filed in court on or after November 1, 2022.
There will be no change to the filing of the arbitrator’s petition when the individual files for bankruptcy on their own.
Changes to repositories
| Current fees | Price from November 1, 2022 | |
|---|---|---|
| Filing of bankruptcy petition from creditors | £990 | £1,500 |
| Filing of the application for liquidation of the company | £1,600 | £2,600 |
Each case of bankruptcy or liquidation of a creditor administered by an official receiver is financed – in part – by a deposit paid by the applicant to start the process.
The filing contributes to the official receiver’s administration costs, with the remainder of their costs being recovered through fees against assets realized during the bankruptcy or liquidation proceedings.
If there are sufficient assets to recover all fees and costs, the deposit is returned to the party that initiated the insolvency.
Fees have not changed since April 2016. The number of insolvency cases has fallen to a historic low, and the majority of the remaining cases have insufficient asset values to recover administrative costs.
The increased bond will allow the Insolvency Service to continue to effectively administer and investigate insolvencies, maximizing outcomes for creditors while mitigating the risk of cost recovery being passed on to the taxpayer.
There will be no change to the filing of the arbitrator’s petition when the individual files for bankruptcy on their own.
This change was implemented by an amendment to the legislation. The Insolvency Proceedings (Costs) (Amendment) Order 2022 was tabled in Parliament on 5 September 2022.
For more information about these changes, please contact: [email protected].
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