Insolvency (Deposits) Order (Northern Ireland) 2006

Explanatory Note

(This note is not part of the Order)

Article 3 of this Order revokes the two previous orders providing for the payment of a deposit on the presentation of a winding-up or bankruptcy petition to which the Insolvency (Northern Ireland) Order 1989 applies.

Article 4 provides for increased deposits of £620 in the case of a winding-up petition, £310 in the case of a bankruptcy petition presented by the debtor and £370 in the case of a bankruptcy petition presented by someone other than the debtor. The deposit is to be refunded if the petition is dismissed or withdrawn, unless, in the case of a bankruptcy petition, it is required to pay fees arising under Article 5 of the Insolvency (Fees) Order (Northern Ireland) 2006 (“the Fees Order”). Depending on whether there are sufficient assets to discharge the fees for which it is security, the deposit is likewise to be refunded in full or in part if a winding up or bankruptcy order is made, even if that order is subsequently annulled, rescinded or recalled.

Article 5 provides for a £335 deposit on notification of an individual voluntary arrangement to the Official Receiver in cases where the Official Receiver is to act as nominee. A full refund will be made in the event of the Official Receiver declining to act, and any balance left after deducting fee IVA2 in the Table of Fees in Schedule 2 to the Fees Order will be refunded if the Official Receiver is willing to act but the bankrupt’s proposal is rejected by his creditors.

A Regulatory Impact Assessment was prepared for the Insolvency (Northern Ireland) Order 2005 which deals with the restructuring of the system of insolvency fees. Copies of this assessment are available from the Legislation Unit, Insolvency Service, Fermanagh House, 20A Ormeau Avenue, Belfast BT2 8NJ.