BusinessBusiness RecoveryMPs petition for lower insolvency fees

MPs petition for lower insolvency fees

Parliamentarians push government to protect the return to unsecured creditors

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”.

Read More:

Challenge
to insolvency fees could backfire

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

1w Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

1w Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

4w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor