Published: 06/09/2022 By Hannah McCormackFrom 1st November 2022, the Insolvency Service will be increasing the petition deposit fee on both Bankruptcies and Company Liquidations.
Creditors wanting to initiate bankruptcy or compulsory liquidation proceedings through the court will have to pay a new, higher amount in order to initiate the process. The new fee, as usual, has to be paid upfront to seek the order.
The new deposit fees are as follows:
|Creditor's Bankruptcy petition deposit
|Company Liquidation petition deposit
There is, however, no change to the fee when an individual applies for their own bankruptcy.
The deposit fee amount is used to part fund the process for the Official Receiver (OR) to cover their admin costs. Further costs incurred by the OR are ideally recovered through assets realised during the insolvency proceedings. If all the OR fees and costs are recovered from the realisation of assets, then the deposit will be returned to the creditor who initiated the insolvency proceedings. However, in most cases, there are insufficient assets to recover these costs.
For more related information, read our page on Creditor Support or our page on Winding Up by the court. Alternatively book a complimentary meeting with one of our experts to discuss your current situation, call 020 8661 7878 or email firstname.lastname@example.org or fill out our contact form.