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Dept for Constitutional Affairs

Answer

Malcolm Bruce: To ask the Parliamentary Secretary, Department for Constitutional Affairs if he will make a statement on the current costs for which (a) a company, (b) a creditor and (c) a debtor is responsible when petitioning for bankruptcy; how much revenue has been generated from the costs of administering (i) company winding up petitions, (ii) creditors' bankruptcy petitions and (iii) debtors bankruptcy petitions in each year since 1997, broken down by (A) nation and (B) region of the United Kingdom; and what plans he has to undertake a review of these costs. [137844] Mr. Leslie: The cost of insolvency from the point of view of the parties is made up of (a) fees charged by the Court Service, an executive agency of the Department for Constitutional Affairs, on issue and subsequent steps in the court proceedings; (b) fees charged by the Insolvency Service (part of the DTI); (c) lawyers and accountants fees. My Department is not in a position to provide a breakdown of (a-c) from the point of view of the parties to the proceedings, either nationally or locally as it deals only with the part of the process relevant to (a). The fees currently payable (relevant to (a) above) on issue of proceedings are: Debtor's Petition: £140 Creditor's Petition: £180 Winding up Petition: £180 Further fees may be payable during the course of the proceedings depending on the steps taken by parties. Those unable to pay the fees and in receipt of specified means tested benefits may claim exemption. Those not qualifying for exemption may apply for remission on grounds of hardship. Lists of the fees payable on issue of insolvency proceedings (and the exemption and remission provisions) are published annually in the Civil Court Practice. Prior to the Civil Justice Reforms of April 1999 the same information was published annually in the County Court Practice and Supreme Court Practice. All of these publications are available in the Library of both Houses. Figures on cost and income in insolvency proceedings (relevant to (a) above) are published in the Court Service Annual Report and Accounts. In the latest edition, 2002-03 (page 51), the cost of insolvency to the Court Service was put at £9,259,000. Income was put at £7,103,000. The Court Service Annual Report and Accounts is available in the Library of both Houses and on the internet www.courtservice.gov.uk/about us/ our performance/annual report 02 03 contents.htm. The Secretary of State and Lord Chancellor has no plan to carry out a review of the total cost of insolvency from the point of view of the parties to the proceedings.

Secondary information

Type

Written question

Reference

137844; 413 c381-2W

Session

2002-03

Subjects

Companies Administration Costs Fees and charges Insolvency Petitions

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk