Fees

Question 1

How much is the OR’s general fee in a bankruptcy or liquidation?

Answer 1

£6,000

Question 2

How much is the OR case administration fee in a liquidation?

Answer 2

£5,000

Question 3

How much is the OR’s administration fee in a debtor’s bankruptcy?

Answer 3

£1,990

Question 4

How much is the OR’s case administration fee in a creditor’s petition bankruptcy?

Answer 4

£2,775

Question 5

What is the OR’s realisation fee?

Answer 5

15%

Question 6

What are the realisation scale charges for realisations by liquidators and trustees as set out in sch 11 of the Rules?

Answer 6

Where the trustee has requested the creditors fix the basis of remuneration and they have not done so; or
 The trustee’s remuneration is not fixed by the creditors within 18 months after the date of the liquidator’s or trustee’s appointment
The trustee is entitled to the fees set out in Sch 11. (Up to the sum needed to play the expenses and debts in full inc interest.)

The realisation scale (distribution scale is half)
On the first £5,000 - 20%
On the next £5,000 - 15%
On the next £90,000 - 10%
All further sums realised - 5%

Question 7

A: If the adjudicator refuses a debtor’s application, is the deposit fee refunded?

B: Where a bankruptcy petition is withdrawn or dismissed, how much is returned

C: What is the liquidation deposit?

Answer 7

A: yes

B: £1,450 (£1,500 deposit fee less £50)

C: 2,600

Question 8

What fees are charged where OR is trustee?

Answer 8

General fee plus administration fee plus 15% asset realisations plus IPA/IPO fee of £150.

Question 9

Howe long do secured and unsecured creditors have to request information about remuneration and expenses after receipt of a progress or final report?

Answer 9

21 days
The trustee must respond to creditor requests for information within 14 days of receipt unless the following grounds for not so doing apply;
 It would be excessively time-consuming or costly to provide the information sought
 It would prejudice the conduct of the bankruptcy to provide the information sought
 It would expose a person to risk of violence

Question 10

When can a secured or unsecured creditor make an application to court that remuneration is excessive?

Answer 10

The application must be made not later than 8 weeks from the delivery of the progress or final report which first reports the charging complained of

 A secured creditor
 Or an unsecured creditor
 With the concurrence of at least 10% in value of unsecured creditors
 Or with the permission of the court
 May make an application to court on the ground that
 The remuneration charged by the office holder is In all the circumstances excessive; or
 The basis is inappropriate; or
 The expenses incurred are in all the circumstances excessive

Question 11

What is the small debt exception?

Answer 11

R14.3-A creditor is deemed to have proved for the purposes of determination and payment of a dividend but not otherwise where—
 (a) the debt is a small debt; (£1,000)
 (b) a notice has been delivered to the creditor of intention to declare a dividend or
make a distribution …..; and
 (c) the creditor has not advised the office-holder that the debt is incorrect or not owed in response to the notice.
 R14.31 - The office-holder may treat a debt, which is a small debt according to the accounting records or the statement of affairs of the company or bankrupt, as if it were proved for the purpose of paying a dividend.

Question 12

Which debts are not provable in bankruptcy?

Answer 12

 An obligation arising under a criminal confiscation order
 An obligation arising from a payment under the Social Security Contributions and Benefits Act 1992 by way of crisis loan or budgeting loan
 a fine imposed for an offence
 an obligation (other than an obligation to pay a lump sum or to pay costs) arising under an order made in family proceedings, or
 an obligation arising under a maintenance assessment made under the Child Support Act 1991
 The bankrupt will remain liable for these debts, even after discharge

Question 13

What is the priority of debts in bankruptcy?

Answer 13

 Pre-preferential debts (very rare)
 Preferential debts
 Certain claims by the bankruptcy employees
 Sums owed to employees’ occupational pension scheme
 Since December 2020: Taxes collected on behalf of HMRC (e.g. VAT or PAYE)
 Unsecured debts
 Statutory interest on preferential and unsecured debts
 Rank equally (alongside) each other
 Payable at the higher of the contractual rate or 8% per annum
 Deferred debts ie Debts to spouses/ civil partners