Cost of deposits payable on creditor bankruptcy and winding-up petitions to increase
The Insolvency Proceedings (Fees) (Amendment) Order 2022, which is due to come into force on 1 November 2022, will increase the deposits payable when presenting a petition to the court for a bankruptcy order or for the winding up of a company.
In order to commence insolvency proceedings against a debtor, the creditor presents a petition to the court. This is either a bankruptcy or winding-up petition depending on whether the debtor is an individual or a company.
When the petition is filed, a deposit needs to be paid by the creditor as security for the payment of the Official Receiver’s fee. If the assets realised during the insolvency proceedings are sufficient to cover this fee, or the order is not made, the deposit is returned to the creditor.
The deposits payable in respect of creditor bankruptcy and winding-up petitions presented on or after 1 November 2022 will be as follows:
• For creditor bankruptcy petitions the deposit will increase from £990 to £1,500.
• For creditor winding-up petitions the deposit will increase from £1,600 to £2,600.
These increases are the first since 2016 and are reported to have been introduced, at least in part, due to the relatively low level of recent insolvencies. Creditors intent on bringing insolvency proceedings may wish to do so before the 1 November deadline.
How can we help?
If you would like advice and assistance in relation to debt collection or insolvency proceedings, please contact a member of our Commercial Dispute Resolution Team.