Winding Up and Bankruptcy Petition Court Costs Increase
Monday 21 April saw the second increase in Insolvency proceedings fees during the month of April 2014 making it even more costly to deal with your own debts or chase those owing you money through the Court.
Highlights (or lowlights) are that it now costs over £700 to petition for your own bankruptcy and over £1,500 to petition for the winding up of a company!
With the government’s own website not being wholly accurate the day after the change here is an accurate list of court fees you will have to pay from 21 April 2014 in the most common forms of Insolvency proceedings:
Court Fee £ Deposit £ Total £
Debtor’s own petition 180 525 705
Deceased persons petition 180 525 705
Creditor’s petition 280 750 1,030
Creditor’s or company’s petition 280 1,250 1,530
Creditor’s or company’s petition for an Administration Order 280 – 280
Notice of Appointment/Intention to Appoint an Administrator 50 – 50
Given the increase in fee levels, you may find it is more cost effective to take alternative courses of action to those you had previously considered, e.g. petitioning for the Administration of a company than winding-up, and in those circumstances this may achieve a better outcome for you as Administration is designed for company rescue rather than closure. For further help or guidance on a particular situation, or to discuss these fees, contact us.
If you’re reading this post out of personal interest because you are thinking about taking any of the actions mentioned above, don’t forget that some processes will need a solicitor and/or an Insolvency Practitioner whose fees will be on top of the fees shown above that are payable to the court.
The fees of professionals can vary between firms as the quality and depth of service varies. The professional fees for quality advice should never put you off taking a particular course of action, especially as the fees may be payable from the assets of the proceedings depending on circumstances. If this is of concern to you, contact us for further information.