Fees Charged by the Insolvency Service

It is not only insolvency practitioners who charge fees in insolvency processes. In the cases of Bankruptcies and Compulsory Liquidations, the Official Receiver is also involved in the process and he is entitled to charge fees relating to his his administration of the case.

In addition, in the cases of Bankruptcies and Compulsory Liquidations only there is a levy on sums received by the insolvency practitioner. This levy is laid down by Statutory Instrument.

A Summary of the Official Receiver’s Fees and Secretary of State Fees appears below:

Fees payable in bankruptcies only:

For the performance by the official receiver of his general duties as official receiver on the making of a bankruptcy order, including his duty to investigate and report upon the affairs of bankrupts, there shall be payable a fee of – £1,850

Bankruptcy – Secretary of State’s administration fee (applicable to bankruptcy orders made on or after 6 April 2010)

For the performance of the Secretary of State’s general duties under the insolvency legislation in relation to the administration of the estate of each bankrupt, there shall be payable a fee calculated in accordance with the following scale as a percentage of chargeable receipts relating to the bankruptcy (but ignoring that part of the total receipts which exceeds the bankruptcy ceiling) at the rate of:

0% of the first £2,000
100% of the next £1,700
75% of the next £1,500
15% of the next £396,000
1% of the remainder, subject to a maximum of £80,000

Fees payable in relation to winding up by the court only:

For the performance by the official receiver of his general duties as official receiver on the making of a winding-up order, including his duty to investigate and report upon the affairs of bodies in liquidation, there shall be payable a fee of – £2,400

Winding up by the court – Secretary of State’s administration fee (applicable to winding up orders made on or after 6 April 2010)

For the performance of the Secretary of State’s general duties under the insolvency legislation in relation to the administration of the affairs of each company which is being wound up by the court, there shall be payable a fee calculated in accordance with the following scale as a percentage of chargeable receipts relating to the company at the rate of:

0% of the first £2,500
100% of the next £1,700
75% of the next £1,500
15% of the next £396,000
1% of the remainder, subject to a maximum of £80,000

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