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Rise in Insolvency Fees

01/04/2010

Rise in Insolvency Fees

On 6th April 2010, the Official Receiver’s deposit, which must be paid upon presentation of a bankruptcy petition or winding up petition, will increase significantly.

  • Debtor’s bankruptcy petition will increase from £360 to £450.
  • Creditor’s bankruptcy petition will increase from £430 to £630.
  • Creditor’s winding up petition will increase from £715 to £1,000.

Paul Hatton comments: “The increase in the various deposits is significant. Creditors seeking to issue a petition, will have to dig deeper to fund deposits. Creditors already have to face the risk that they will not receive any payment of the debt and having to pay in the region of £200 to £300 extra to issue the petition, is a further burden for them to bear.”

“The increase in the deposit for debtor’s bankruptcy petitions makes it all the more difficult for individuals to petition for their own bankruptcy. It is likely therefore, that insolvent individuals will wait for a creditor issue a petition, rather than being able to start the process themselves. In that intervening period, the individual may build up further debts, which is not in the interest of the creditors as a whole.”