The changes brought into effect by the Insolvency Proceedings (Fees) (Amendment) Order 2022) will see a jump of £1,000 on the deposit payable on presenting a winding-up petition to £2,600 and an additional £600 on bankruptcy petitions to £1,500. It should be remembered that court fees are payable in addition to the Insolvency Service deposit. This may put some clients off due to the exponential increase in the fees due upfront.
A winding-up petition is a strong choice of weapon available to creditors and is particularly effective at differentiating out those that ‘won’t’ pay from those that ‘can’t’ pay.
Creditor bankruptcy and liquidation petition deposits to rise The up-front petition deposit fee paid by those initiating creditor bankruptcy and compulsory liquidation proceedings is rising from 1 November 2022. From: The Insolvency Service Published 5 September 2022 The Insolvency Service is introducing changes to the deposits paid to initiate creditor bankruptcies and compulsory liquidations. The petition deposit, the amount that needs to be paid up-front to seek an order, will be increasing in all cases where a petition is filed at court on or after 1 November 2022. There will be no change to the adjudicator petition deposit where the individual applies for their own bankruptcy. Changes being made to deposits Current Fee Fee from 1 November 2022 Creditors’ bankruptcy petition deposit £990 £1,500 Company liquidation petition deposit £1,600 £2,600https://www.gov.uk/government/news/creditor-bankruptcy-and-liquidation-petition-deposits-to-rise