Fees (From 1 April 2015)

Fees for services

Bankruptcy fees regulations
Accountant in Bankruptcy (AiB) charges for the services it provides, as outlined by the Bankruptcy Fees (Scotland) Regulations. The levels of fees and charges for our services are reviewed annually.  The Bankruptcy Fees etc. (Scotland) Regulations 2014 introduce changes to AiB’s current fee structure and set out the fees involved in administering personal insolvencies in Scotland in accordance with AiB’s functions. AiB is committed to ensuring transparency in introducing these changes.

Agency funding

In line with the Scottish Public Finance Manual Accountant in Bankruptcy has been working to reduce funding from the Scottish Government by moving towards the delivery of full cost recovery. A fees system which reflects the costs of delivering our services allows the Agency to reduce its reliance on funding from the public purse.

The graph below shows a continued trend of lowering our funding requirements from the public purse since 2007/08. This has been achieved through cost reductions from value for money contracts, process efficiencies as well as fee amendments to ensure the cost of service delivery is covered where possible.

   

These figures have been taken from AiB’s annual accounts and are expressed in nominal monetary terms (i.e. they have not been converted into real terms).

Debtor application fee
The debtor application fee for full administration applications is £200 which reflects the cost of processing the application. There has been no increase in this fee from the 2012 regulations however it now applies to executors of deceased debtors.  The Minimal Asset Process (MAP) is a new route into bankruptcy introduced on 1 April 2015 has a much lower debtor application fee of £90. This reduced fee reflects the lower administration costs incurred by AiB in processing these types of debtor application in comparison to full administration bankruptcies.

There is provision to pay the debtor application fee in smaller installments and more details on this can be found in the Debtor Application Pack and by completing the Notice to pay by installments form. The application will not be processed until full payment has been made.

For comparison the fee rate for determining a debtor application for full administration In Scotland remains significantly lower than fees for the same service elsewhere in the UK:

Debtor application fees

Court fee

Debtor fee

Total

Scotland

n/a

£200

£200

England & Wales*

£180

£525

£705

Northern Ireland*

£115

£525

£640

*The above fees for England & Wales and Northern Ireland were correct as of 1 April 2014.

Creditor petition fee
The creditor petition fee has not changed and AiB’s fee remain significantly lower than elsewhere in the UK:

Creditor petition fees

Court fee

Petition Admin

Deposit

Total

Scotland (AiB as trustee)

£107

£100

£200

£407

Scotland (IP as trustee)

£107

£100

n/a

£207

England & Wales*

£280

n/a

£700

£980

Northern Ireland*

£150

n/a

£700

£850

*The above fees for England & Wales and Northern Ireland were correct as of 1 April 2014.

Exercise of functions as Interim Trustee
When appointed as interim trustee AiB previously charged £100 for each hour of work performed. This fee has been updated to a flat rate of £200 per case.

Exercise of functions as Interim Trustee
When appointed as permanent trustee the Agency previously charged £100 for each hour of work performed. This has been updated to a flat rate of £1,100 per case. This fee allows the Agency to recover the costs of case administration from funds ingathered into the case, where sufficient funds exist. The costs recovered through this fee incorporate any fees that AiB may be charged for external trustees to perform trustee functions on behalf of AiB.  This fee compares to an up-front administrator’s fixed fee for England and Wales of £1,850 with additional fees taken from funds ingathered.

Supervising proceedings in sequestration
The fees previously in place for the supervision of Insolvency Practitioners as trustee in sequestration have been removed and replaced with a single annual fee. The rationale is to achieve a simpler fees structure with fixed administration fee for cases where AiB is trustee and a different level of fixed fee where AiB is supervising private trustees.

In sequestrations where no commissioners have been elected:

 

2012 Fee Structure

2014 Fee Structure

Supervising proceedings

£139

£70 per annum or part thereof

Registering award of sequestration

£20

Special report to court

£69

Examination of sederunt book and discharge of trustee

£36

Granting certificate of discharge to interim trustee

£36

In sequestrations where commissioners have been elected:

 

2012 Fee Structure

2014 Fee Structure

Supervision of trustee

£210

£70 for first 12 month period and £50 per annum or part thereof thereafter

 

Registering award of sequestration

£20

Supervising payment of dividend

£69

Special report to court

£69

Examination of sederunt book and discharge of trustee

£36

Granting certificate of discharge to interim trustee

£36

Fees introduced by 2014 fees order
Following the introduction of Bankruptcy and Debt Advice (Scotland) Act some functions previously carried out by the Sheriff Court have been transferred to AiB. The table below summarises the fees that have been added to the 2014 fees order relating to these new functions. The fee for each of these has been set to cover the cost of the related work which compares to the ‘note in sequestration’ fee charged by the court of £56. The AiB fee descriptions can be found in full in The Bankruptcy Fees etc. (Scotland) Regulations 2014 .

Fee Description

Fee

Receiving a report to elect a replacement trustee

£50

Appointing replacement trustee where original trustee resigned

£50

Order for application for removal of trustee

£50

Declaration in relation to application for declaration of trustee office as vacant

£50

Determination on receipt of application for replacement of trustee acting in more than one sequestration

£50

Appointing trustee where newly identified estate discovered after discharge

£50

Direction in relation to a particular matter arising*

£50

Issuing order curing defects in procedure

£50

Determination of an application for recall*

£100

Considering application by member State liquidator for conversion of trust deed into sequestration*

£50

*The 2014 fees order applies only to sequestrations or trust deeds where the petition was presented or debtor application was made on or after 1st April 2015 with the exception of these fees highlighted above which will apply to all cases.

Discharge certificate 
The charge for a discharge certificate of £11.00 has been removed from the fees order and all discharge certificates will now be provided free of charge.

 

Fees for service (before 1 April 2015)