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Friday, March 14, 2014

Changes to the fees charged by the Insolvency Service announced

In April, the price tag for involuntary bankruptcies will be going up in England and Wales.  People petitioning for bankruptcy on a voluntary basis will not need to pay higher costs.

The rationale is:

"The increases reflect the true cost of administering insolvencies to the Insolvency Service and provide a balance between the interests of both debtors and creditors. It means that those who benefit from the insolvency process pay for that while protecting taxpayers’ money."

What do you think of prices staying flat for some cases and increasing for others?  

Per the Insolvency Service 

13 March 2014:

The Insolvency Service has announced increases to the fees paid during insolvency procedures in line with inflation, to make sure people benefiting from the process pay their fair share while protecting those who cannot pay.
From 6 April 2014, fees and deposits paid in creditor and company winding up petitions in England and Wales will increase. The increases take account of inflation since the last time fees and deposits were put up in 2010 and 2011 respectively. Deposits for people petitioning for their own bankruptcy remain at 2011 levels.
The increases reflect the true cost of administering insolvencies to the Insolvency Service and provide a balance between the interests of both debtors and creditors. It means that those who benefit from the insolvency process pay for that while protecting taxpayers’ money.
Business Minister Jenny Willott said:
“No one wants to increase fees but today’s increases will make sure the Insolvency Service continues to provide a high quality service to those in debt whilst still representing good value for money.
“People petitioning for insolvency are expected to pay their fair share of the cost and the taxpayer should not be responsible for the fee. Only the deposit is paid upfront and the remainder of the fees are collected once assets are realised.
“To make sure the process is accessible to those people who need it, we have not changed the deposits paid by people petitioning for their own bankruptcy.
“Bankruptcy gives people a fresh start and keeping the deposits at the current level will make sure that people who find themselves with debts they can’t pay are able to make a clean break and get on with their lives.”
For the changes to fees, and more information see:
http://insolvency.presscentre.com/Press-Releases/Changes-to-the-fees-charged-by-the-Insolvency-Service-announced-69a30.aspx


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