Insolvency Court Fee Changes 2024: What You Should Know
The government has recently issued a series of miscellaneous amendments to the cost of Court and Tribunal fees following a consultation by the Ministry of Justice.
And – we imagine to nobody’s surprise – they have decided to increase a range of fees across the board.
All fees have been increased by around about 10%. The changes will come into effect on the 1st of May, 2024.
These changes have resulted in a whole host of insolvency-related court fees rising. In this guide, we’ll detail which fees have risen and by how much.
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Why Have Court Fees Increased?
The Ministry of Justice has increased fees to help fund Her Majesty’s Courts and Tribunals Service amidst escalated running costs. 200 court fees have been increased by roughly 10%, a move the Ministry expects should raise a projected £34-£42 million a year.
According to the latest consultation, court fees generated £727 million in 2022/23. During that same period, it cost £2.3 billion to run HMCTS. The £1.57 billion difference was funded by taxpayer money.
Minister of Justice, Mike Freer, explained:
“It is critical that HMCTS continues to receive an adequate stream of income by ensuring fees keep pace with increased costs to HMCTS as a result of changes in the general level of prices, while at the same time minimising the cost to the taxpayer as much as possible.
“[The 10% rise] creates a fair balance between more closely aligning user contributions to growing HMCTS costs and recognising the ongoing financial pressures to households as a result of increases to the cost of living.”
Fees were last raised back in 2021. The government has acted on the consultation’s suggestion to review court fees once every 2 years, meaning that they will likely be raised again in 2026.
Which Insolvency Fees Have Been Affected?
Just over half of all court fees relating to the Companies Act 1985, Companies Act 2006 and the Insolvency Act 1986 have been affected.
The fees for a debtor to declare bankruptcy and to request a certificate of bankruptcy discharge remain unchanged. The fee for insolvency practitioners to submit a nominee report has also remained the same.
You can see the full list of fee changes below:
| Name of Fee | Old Fees | New Fees |
|---|---|---|
| Creditor Bankruptcy Petition | £302 | £332 |
| Administration Order Petition | £302 | £332 |
| Other Insolvency Petition | £302 | £332 |
| Misfeasance Application, etc | £280 | £302 |
| Notice of Intent (Administration) | £50 | £55 |
| Application by Consent | £26 | £29 |
| Application within Existing Proceeding | £99 | £109 |
What Does this Mean for You?
The impact these changes will have on you depends on your situation.
If you’re a debtor, you’ll likely be unaffected. Many will find it unfortunate that the £680 fee to declare bankruptcy hasn’t been reduced or scrapped, but thankfully, no increases have been made. Other solutions, like IVAs, remain the same.
Creditors will be the ones to feel the pinch of these increases. However, these increases of £20 or £30 shouldn’t be majorly impactful to those already pursuing potentially expensive legal proceedings.
If you’re having trouble with debt and are worried about the changes covered in this article, speak to one of our team.
