Insolvency (Deposits) Order (Northern Ireland) 2006
Citation and commencement1.
This Order may be cited as the Insolvency (Deposits) Order (Northern Ireland) 2006 and shall come into operation on 27 March 2006.
Interpretation2.
In this Order—
“individual voluntary arrangement” means a voluntary arrangement pursuant to Chapter II of Part VIII of the 1989 Order;
“the 1989 Order” means the Insolvency (Northern Ireland) Order 1989;
Revocation3.
Deposits - winding up by the High Court and bankruptcy4.
(1)
In this Article—
“appropriate deposit” means—
(a)
In relation to a winding-up petition to be presented under the 1989 Order the sum of F1£1,165:
(b)
In relation to a bankruptcy petition to be presented under Article 238(1)(b) of the 1989 Order the sum of F2£525; or
“order” means a winding-up, or as the case may be, bankruptcy order;
“petition” means a winding-up, or as the case may be, bankruptcy petition;
“relevant assets” means the assets of the company or, as the case may be the assets comprised in the estate of the bankrupt; and
“relevant fees” means in relation to winding-up proceedings fee W1 in the Table of Fees in Schedule 2 to the Fees Order and in relation to bankruptcy proceedings fee B1 in the Table of Fees in Schedule 2 to the Fees Order together with any fees payable under Article 247 of the 1989 Order.
(2)
Where a petition is presented the appropriate deposit is payable by the petitioner and the deposit shall be security for the payment of the relevant fees and shall be used to discharge those fees to the extent that the relevant assets are insufficient for that purpose.
(3)
A deposit shall be repaid to the person who made it in a case where a petition is dismissed or withdrawn except in the case of a bankruptcy petition where it is required to pay any fees arising under Article 5 of the Fees Order.
(4)
In any case where an order is made (including any case where the order is subsequently annulled, rescinded or recalled), any deposit made shall be returned to the person who made it save to the extent that the relevant assets are insufficient to discharge the fees for which the deposit is security.
Deposits –official receiver acting as nominee in individual voluntary arrangement5.
(1)
Where a proposal for an individual voluntary arrangement with the official receiver acting as nominee is notified to the official receiver, the notification shall be accompanied by a deposit of F4£315 as security for fees IVA1 and IVA2 in the Table of Fees in Schedule 2 to the Fees Order.
(2)
The deposit shall be used to discharge fees IVA1 and IVA2.
(3)
Where the official receiver declines to act in relation to a proposal of the kind mentioned in paragraph (1) the deposit mentioned in that paragraph shall be refunded to the person entitled to it.
(4)
Where the official receiver agrees to act as nominee in relation to a proposal of the kind mentioned in paragraph (1) but the proposal is rejected by the bankrupt’s creditors, any balance of the deposit after F5deducting fee IVA2 shall be returned to the person who is entitled to it.
Sealed with the Official Seal of the Department of Enterprise, Trade and Investment on 16 February 2006
Sealed with the Official Seal of the Department of Finance and Personnel on 16 February 2006
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.