OR Deposit Increase – 1st November 2022

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In September 2022 the Insolvency Service announced that the Official Receiver deposit, payable on the issue of bankruptcy or winding up proceedings will be increased.

From £990.00 to £1,500.00 for individual bankruptcies, and from £1,600.00 to £2,600.00 for Company liquidations (Winding Up Petitions), with the increase due to take effect from 1st November 2022.

The deposit is payable upon the issue of the petition and is aimed at partially funding the initial administration costs incurred by the Official Receiver.

Whilst insolvency fees generally have not changed since 2016, the increase is significant – between 51% and 62.50%.

The Insolvency Service has justified the increase by stating that it was necessary to enable them to administer and investigate insolvencies effectively, particularly where there are low or no funds available in the insolvent estate.

For creditors, it increases the need to weigh up the costs involved against any likely return from the insolvency. More care and scrutiny should be applied before the issue of proceedings to ensure as far as possible that there are sufficient assets in the insolvent estate to cover not only the increased costs, but to also see a return to creditors.

Olivia McAllister

Greenhalgh Kerr
Olympic House, Beecham Court,
Smithy Brook Rd,
Wigan WN3 6PR

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+44 (0)333 200 5200

We are confident in our work and we know that recoveries is a key part of a lender or creditor’s business

We are confident in our work and we know that recoveries is a key part of a lender or creditor’s business. We have designed our pilot projects to give lenders and creditors the comfort and confidence in our service before formally and fully switching recoveries providers. This time also allows new clients to benchmark our service levers and results against existing providers and others.

How it works

01

You choose 10 recoveries cases

You choose 10 recoveries cases to get us started. We’ll deliver our usual onboarding protocol where we’ll get to know you and your systems, culture, methods, preferences, and requirements.

02

We get started

We assess each case by setting a strategy then grading and reporting on the case in terms of prospects and timescales and cost. We make immediate contact with debtors, and pursue a recovery in our tried and tested ways.

03

We review

We deliver ongoing, structured, tailored reports as per your needs and carry out a full 3-month review on these 20 cases. There we’ll discuss how we have worked together, patterns we have seen in your borrowers, your systems, your documents, your pre-legal conduct, outcomes, highs and lows, legal costs (and costs borne by debtors), and possible improvements in all of these.

04

No strings

We carry on working in this way until all cases have been concluded. You are then free to carry on your discussions with us or to use the experience and market intelligence gained by working with us in the future.

Lenders and creditors have nothing to lose, and everything to gain, by engaging with us on a pilot project.