The Insolvency Proceedings (Fees) (Amendment) Order 2016 (SI 2016/692) (“Order”) will come into force on 21 July 2016, revoking The Insolvency Proceedings (Fees) Order 2004 (SI 2004/593). The Order provides for a new insolvency fee structure for bankruptcies and compulsory liquidations, however the court issue fee of £280 shall remain the same pursuant to The Civil Proceedings Fees (Amendment) Order 2014.
The order provides that the increased deposits are
• creditor’s bankruptcy petition deposit £990 (from £825)
• creditor’s winding up petition deposit £1,600 (from £1,350).
In addition to the above, the Amendment Order now provides that the Official Receiver may deduct an administration fee of £50 when deposits are returned following a withdrawal or dismissal.
Luke Harrison, lead litigation and insolvency partner at Debenhams Ottaway comments “The increases will result in a marginally increased level of funding for the Insolvency Service. It is unlikely that this will act as a significant deterrent to creditors petitioning for bankruptcy or winding up orders. It will also hopefully ensure that the insolvency service remains sufficiently funded to administer bankruptcies and liquidations that flow from petitions”.