Bankruptcy: Interest on sums held in Insolvency Services Account
13.For many years it has been possible for funds held in the Insolvency Services Account for a company in liquidation to be invested in government securities for the benefit of the estate. There was also a facility for funds in excess of £2,000 to be placed in an interest bearing account and since 1994, interest of 3.5% per annum has been paid automatically on such funds. Similar provisions have never applied to bankruptcy estate funds. The Act, therefore, gives the Secretary of State the power to make rules or regulations which will remove that anomaly.
