Bankruptcy (Hansard, 2 March 2004)
HC Deb 02 March 2004 vol 418 cc787-8W
Bob Spink

To ask the Secretary of State for Trade and Industry what plans she has to reduce the 8 per cent. interest rate charged on debts determined by the Judgment Act 1838 which is levied on bankruptcy debts under Rule 6.113 of the Insolvency Act 1986; and if she will make a statement. [157831]

Mr. Sutcliffe

I have no plans to amend Rule 6.113 of the Insolvency Rules 1986 so that a rate of interest other than that specified in section 17 of the Judgments Act 1838 will apply to debts mentioned in sub rules (2) and (3) and outstanding at the date of the bankruptcy order. It is for the Lord Chancellor, with the concurrence of the Treasury, to make any order amending the rate of interest which applied under section 17 of that Act.

Bob Spink

To ask the Secretary of State for Trade and Industry what plans she has to allow discretion on the charge of an interest rate of 8 per cent. on bankruptcy debts; and if she will make a statement. [157832]

Mr. Sutcliffe

I have no such plans. I consider the interest rate at which judgment debts carry interest to be the appropriate rate to be applied to bankruptcy debts in those cases where the Insolvency Act 1986 provides for section 17 of the Judgments Act 1838 to be applied.

Bob Spink

To ask the Secretary of State for Trade and Industry what plans she has to vary the percentage of debt recovered fee she charges for performance of her general duties under insolvency legislation; and if she will make a statement. [157833]

Mr. Sutcliffe

A new Insolvency Fees Order will come into effect on 1 April 2004 that will include a new rate of 17 per cent. "For the performance by my right hon. Friend the Secretary of State for Trade and Industry of her general duties under the insolvency legislation in relation to the administration of the affairs of each company which is being wound up by the court" and "For the performance by the Secretary of State of her general duties under the insolvency legislation in relation to the administration of the estate of each bankrupt". However, the fee will not be applied to the first £2,000 of receipts in a case and the maximum of this fee in any one case will be limited to £100,000. The new rate will only apply to cases where the insolvency Order is made on or after 1 April 2004.

For cases where the insolvency Order has been made before 1 April 2004 the current scales will continue to be applied except in relation to the affairs of companies which are being wound-up voluntarily where the fees will be revoked from 1 April 2004.

This is only one of a number of changes being made on 1 April 2004 in relation to fees in insolvency cases. The new Fees Order, which will shortly be signed and be made available on The Insolvency Service's website (insolvency.gov.uk), seeks to simplify the fee structure applicable in relation to insolvency proceedings by reducing the number of fees payable. Hence it is not possible to make a direct comparison between any specific fee that will be prescribed in the new Fees Order with a specific fee charged under the Insolvency Fees Order 1986 or earlier legislation.

Bob Spink

To ask the Secretary of State for Trade and Industry which body is responsible for(a) responding to complaints about and (b) reviewing trustees' remuneration under bankruptcy legislation. [157834]

Mr. Sutcliffe

Concerns regarding the remuneration of a trustee in bankruptcy should be addressed to the court dealing with the bankruptcy in question by making an application under either section 303 of the Insolvency Act 1986 or Rule 6.142 of the Insolvency Rules 1986.

GLOBAL ISLES COURT OF RECORD