Official Receiver’s Office Fees Increase
In July 2016 the Insolvency Service (an executive agency sponsored by the Department for Business, Energy and Industrial Strategy) announced a new fee regime on bankruptcy and compulsory liquidation cases.
The Insolvency Service deals with these cases in the first instance following the granting of a bankruptcy order against an individual or a compulsory winding up order against a company. The new fees regime is quite a departure from the previous system and provides for a fee of £6,000 in every case and a further fee of 15 % of realisations applicable in those cases which will be run by the Official Receiver.
This may see a decline in the number of creditor petitions being presented due to the upfront cost which may lead to unscrupulous companies or individuals continuing to incur debt to the detriment of creditors where previously it would have been wound up.
« Back to newsletter articles