Following on from our previous post, insolvency litigators are thanking their lucky stars for the second time in less than a week. The Government is set to significantly increase court fees with effect from Monday, 9 March 2015 as published on our Talking Solutions blog yesterday. However, the proposed new rules only amend certain court fees and the court fees for insolvency claims are untouched.

What does this mean for litigators? In general claims the amendment order will increase issue fees to 5% of the value of the claim for claims over £10,000 (subject to a maximum fee of £10,000). This means that for a claim for £190,000, for example, the fee payable will increase from £1,315 to £9,500. This represents a huge fee increase of 622%.

For insolvency claims however, the fixed fees we currently have will still apply. Regardless of the value of the claim, the fixed fee for an application under the Insolvency Act 1986 will remain at £280. An insolvency claim for £190,000 would therefore command a fee of £280 and not £9,500 as explained above – a saving of £9,220 for insolvency claimants.

Together with the announcement that the ‘Insolvency Carve Out’ is to continue indefinitely, this news is sure to spare insolvency practitioners some sleepless nights. In regards to fee increases relating to general claims, The Law Society is beginning a judicial review challenge amid concerns that the imminent fee increases will limit access to justice.

This post was edited by Joseph Evans. For more information, email

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This blog is intended only as a synopsis of certain recent developments. If any matter referred to in this blog is sought to be relied upon, further advice should be obtained.