Insolvency: Fees and Charges

Business, Enterprise and Regulatory Reform written question – answered on 16th January 2008.

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Photo of Austin Mitchell Austin Mitchell Labour, Great Grimsby

To ask the Secretary of State for Business, Enterprise and Regulatory Reform if he will make it his policy to investigate those cases where the fees paid to insolvency practitioners exceed 10 per cent. of the cash collected by them.

Photo of Pat McFadden Pat McFadden Minister of State (Department for Business, Enterprise and Regulatory Reform) (Employment Relations and Postal Affairs), Member, Labour Party National Executive Committee

The Secretary of State has no plans to investigate the fees paid to insolvency practitioners. In liquidation and bankruptcy cases it is for those who have most interest in the matter, the creditors, to consider the level of remuneration charged by an insolvency practitioner and they, or the relevant committee, must approve such remuneration. Where a minority of creditors are concerned that the remuneration appears excessive, provided at least 25 per cent. in value of creditors agree, application may be made for the court to review the level of remuneration charged.

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