Cost of creditor bankruptcy and liquidation deposits rise 

The Insolvency Service has increased the cost of deposits paid to initiate creditor bankruptcies and compulsory liquidations.

Carly Davies, our Debt Control Manager reports.

The petition deposit, the amount that needs to be paid up-front to seek an order, has increased in all cases where a petition is filed at court after 1 November 2022.  

There will be no change to the adjudicator petition deposit where the individual applies for their own bankruptcy.  

• The Creditors’ bankruptcy petition deposit has risen from £990 to £1,500. 
• The Company liquidation petition deposit has increased from £1,600 to £2,600. 
• Both increases came into effect on 1 November.  

Each creditor bankruptcy or liquidation case administered by an Official Receiver is partly funded through a deposit paid by the petitioner to initiate the process.  

The deposit contributes to the Official Receiver’s administration costs, with the remainder of their costs recovered through fees charged against assets realised during the bankruptcy or liquidation proceedings.   

If there are sufficient assets to recover all the fees and costs, then the deposit is returned to the party that initiated the insolvency.  

If you would like more information about this article or any aspect of debt collection and credit control, please contact Carly on 01228 516666 or click here to send her an email.