Bankruptcy and creditor liquidation filings will increase

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The The Insolvency Service introduced changes to deposits made to initiate creditor bankruptcies and court-ordered liquidations.

The motion filing, the amount that must be paid upfront to seek an order, will increase in any case where a motion is filed in court on or after November 1, 2022.

The creditors’ bankruptcy petition filing will increase from £990 to £1,500, and the company’s liquidation petition filing will increase from £1,600 to £2,600.

There will be no change to the filing of the arbitrator’s petition when the individual files for bankruptcy on their own.

The deposit contributes to the administration costs of the insolvency administrator, with the remainder of the costs being recovered by fees levied on assets realized during the bankruptcy or liquidation proceedings.

If there are sufficient assets to recover all fees and costs, the deposit is returned to the party that initiated the insolvency.

The service said the change comes as fees have not changed since April 2016 and the number of insolvency cases has fallen to a “historic low”, with the majority of the remaining cases having asset values insufficient to recover administrative costs.

The increased bond will allow the Insolvency Service to continue to “effectively administer and investigate insolvencies, maximizing results for creditors while mitigating the risk of cost recovery being passed on to the taxpayer”.

There will be no change to the filing of the arbitrator’s petition when the individual files for bankruptcy on their own.

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