Parliamentarians have launched an attack on the fees charged by the
insolvency profession after 30 MPs signed a cross-party Commons motion urging
the government to review legislation so that charges might be reduced and
unsecured creditors receive a greater return.
Written by Ochil and South Perthshire Labour MP Gordon Banks, the motion
protests that “that current UK insolvency laws and regulations fail to
adequately protect unsecured creditors”.
Banks complained current law ensures practitioners receive their fees, then
secured creditors, who may include banks, leaving unsecured creditors to share
out whatever is left.
He said : “Unsecured creditors are in a very difficult position and are often
exposed almost to breaking point when one of their customers goes bust.
“To resolve this situation we need to look at reducing the often significant
fees charged by receivers, administrators and liquidators to allow for a larger
proportion of the estate to be made available for creditors of all nature.”
Banks said other means should also be considered to secure “a guaranteed
slice of the cake for unsecured creditors”.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
"The whole idea of HMRC officials supplying confidential information about individuals to the media on a non-attributable basis is, or should be, a matter of serious concern," say Supreme Court judges
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK