Online bankruptcy applications by debtors
From 6th April 2016 changes to the Insolvency Act 1986 brought in by section 71 and Schedule 18 of the Enterprise and Regulatory Reform Act 2013 mean that debtors who wish to bankrupt themselves will no longer present petitions to the court.
The new regime inserts several new sections into the Insolvency Act 1986, namely sections 263H-263O and 398A. The key to the changes is that instead of presenting a debtor’s bankruptcy petition to the court to declare yourself bankrupt, you will now need to make a bankruptcy application online to an adjudicator who is acting as part of the Insolvency Service. There will only be court involvement in such applications in a very narrow set of circumstances. Corresponding amendments to chapter 3 of the Insolvency Rules 1986, made by the Insolvency (Amendment) Rules 2016 SI 2016/187 also come into force on 6th April 2016.
Income Payments Agreements and Orders
The Official Receiver will now charge fees for entering into an Income Payments Agreement or on the making of an Income Payments Order of £150.
Secretary of State’s Fees and Petition Deposits Changes
The Insolvency Proceedings (Fees) Order 2016 came into force on 21st July 2016. This abolishes the previous regime of charging Secretary of State’s Fees and introduces a new Official Receiver’s General Fee of £6000 for the administration of all estates both in corporate matters following a winding up order and in individual matters following a bankruptcy order.
The petition deposits payable have also been changed and are now as follows:
(a) on the making of a bankruptcy application, the sum of £550;
(b) on the presentation of a bankruptcy petition, the sum of £990;
(c) on the presentation of a winding up petition, other than a petition presented under section 124A(c) of the Act, the sum of £1,600; and
(d) on the presentation of a winding-up petition under section 124A of the Act, the sum of £5,000.
Official Receiver Acting As Liquidator
The fees for the Official Receiver to act as a liquidator will be 15% of the chargeable receipts realised in the liquidation by them.
Official Receiver Administration Charges
The fees charged by the Official Receiver in administration of estates will be either £5000 or £7500 in winding up matters, and £2775 on the making of a bankruptcy order based on a creditor’s petition.