NEW FINANCIAL REGIME - FEES AND CHARGES

The new financial regime was introduced to ensure fairness, to provide accountability and a more commercial approach.  It means that The Insolvency Service’s costs are met by those fees charged in connection with case administration, banking, administration of FTVAs and IP authorisation and regulation. Policy development, investigation and enforcement costs are met by BERR. 

 

Casework is paid for by creditors (the deposit and administration fee) and from asset realisations (Secretary of State [SOS] fee) and, where applicable, time and rate fee.

 

Basically 15 fees have been reduced to two main fees – administration fee and SOS fee.

Current fees and charges (from 6 April 2008)

 

Deposits:      

  • Bankruptcy debtor’s petition - £345
  • Bankruptcy creditor petition - £415
  • Company petition - £690

Case administration fee:

  • Bankruptcy - £1,715
  • Company - £2,160

SOS fee – 17% of all asset realisations between  £2,000 and £80,000 where the insolvency order was made after 1 April 2004.

 

In those cases where the order was made prior to 1 April 2004, SOS fees will not apply.

 

Time and rate charges – distributions etc 

 

FTVA Nominee fee - £310

 

FTVA Registration fee - £10

 

FTVA Supervisor’s fee - 15% of all asset realisations.

 

In summary the new regime is a simpler fee structure, it balances the needs of the debtor and creditor and it provides full cost recovery for administration.