January 14, 2025

Insolvency Proceedings (Fees) (Amendment) Order 2024

Posted in Dispute Resolution
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Milan Kapadia
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This Order amends the Insolvency Proceedings (Fees) (Amendment) Order 2016 to increase specified fees in relation to insolvency proceedings in England and Wales under the Insolvency Act 1986.

The new fees came into force on 9 January 2025.

Whilst most fees have increased by approximately 20%, the deposit payable by the Secretary of State to the Court on presentation of a winding up petition on the ground of public interest has increased by 170% and the Official Receiver’s (“OR”) fee for winding up by the court on petition under section 124A Insolvency Act 1986 will see an 80% increase.

The fees that have been increased include the following:

  • The deposit payable by the Secretary of State to the Court on the presentation of a winding up petition on the ground of public interest will increase from £5,000 to £13,500.
  • The OR’s bankruptcy administration fee following a debtor’s application will increase from £1,990 to £2,390.
  • The OR’s bankruptcy administration fee following a creditor’s petition will increase from £2,775 to £3,300.
  • The OR’s administration fee for winding up by the court other than a winding up on a petition presented under section 124A Insolvency Act 1986 will increase from £5,000 to £6,000.
  • The OR’s administration fee for winding up by the court on a petition under section 124A Insolvency Act 1986 will increase from £7,500 to £13,500.
  • The OR’s general fee will increase from £6,000 to £7,200.

There has been no explanation provided by the government as to the reason for the increase in fees, but the last increase was 9 years ago. However, the explanatory notes of the Order state that the instrument is expected to have no, or no significant impact on the private, voluntary or public sector.

Conclusion

The Insolvency Proceedings (Fees) (Amendment) Order 2024 introduces significant fee increases across various aspects of insolvency proceedings, effective from 9 January 2025. While the general increases, such as the 20% rise in the Official Receiver’s general fee, align with expectations of inflation or administrative costs, the sharp hikes in fees for winding-up petitions on public interest grounds and section 124A petitions are particularly striking. Moving forward, it will be crucial to monitor the impact of these adjustments on businesses, individuals, and the administration of insolvency cases in England and Wales.

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