Important changes to insolvency fees
11 Jul 2016

The Insolvency Service will be introducing a new fee structure on Thursday 21st July 2016. Back in 2014, The Insolvency Service agreed with the HM Treasury that they would review the full fee structure and devise a more transparent charging system in accordance with the ‘Managing Public Money’ guidelines.

Deposits on debtors, creditors and company winding up petitions are increasing; this increase is the first since 2011. The Official Receiver’s case administration fees are also increasing and the Secretary of State fee is being replaced with a new fee called the Official Receivers General Fee.

The following changes are being made to the fee structure:

  • Trustee/liquidator fees: They will now be charged on asset realisations when the official receiver is acting as a trustee or liquidator.
  • Income payment set-up fees: They will now be charged when the official receiver accepts an income payments agreement or secures an income payments order
  • Dismissed petition fees: This will be payable when a winding up or bankruptcy petition is dismissed and the deposit is returned to the petitioner

This new fee structure has been devised to achieve the closest to full cost recovery as possible. The structure will work on matching the revenue to the work carried out allowing those who use The Insolvency Service to know what options are available to them and make an informed decision.

For more information about the changes to The Insolvency Service fees, visit the website here.