Challenge Trustee in Bankruptcy’s Costs

Can you challenge the trustee in bankruptcy’s fees / costs?

Yes, a person who has been declared bankrupt has (since 6 April 2010) the right under the Insolvency (Amendment) Rules 2010, specifically Rule 6.207A to apply to challenge the fees received by a trustee in bankruptcy.

What are the trustee in bankruptcy’s costs / fees?

Your assets are likely to be sold to pay the bankruptcy debts. Once a bankruptcy order is made against you then your assets have to be handed over to the person that has been appointed to manage your bankruptcy. This person is known as the trustee in bankruptcy and it will be either the Official Receiver or an insolvency practitioner.

The trustees costs / fees are the charges for the time spent in managing the bankruptcy estate.

The order of priority i.e. the list stating which creditor gets paid out of your assets first, places the trustee top of that list, so they will get paid first.

As specialist bankruptcy Solicitors and Barristers, we can make an application if you instruct us to do so. The Court would then decide (based on the evidence presented) whether to reduce the fees of the trustee in bankruptcy.

Case examples of a trustee’s remuneration being reduced by the Court

  • A reduction of circa 40% of the trustee’s fees was secured after the court found that costs should not be for all the time that the trustee spent on the matter but instead the remuneration should be what is proportionate to the size of the bankruptcy estate and the case complexity.
  • In another case, the court asked the trustee in bankruptcy to explain the benefit which had accrued to the bankruptcy- which was not done adequately – and the trustee’s claim was therefore found to be unjustified.

We challenge trustee remuneration

Our legal team fight to defend your rights when you been made insolvent. Our bankruptcy specialists are leading U.K. experts in personal insolvency law and are well-versed in challenging disproportionate fees. There is case law which suggests that should your case be heard by the court, the judiciary are likely to allow challenges to a trustee’s fees that evidence charging at a disproportionate level (bearing in mind the complexity of the matter and the size of your bankruptcy estate).

Challenge a Trustee’s Fees: Instruct Specialist Bankruptcy Annulment Solicitors

We are a specialist City of London law firm made up of Solicitors & Barristers operating from the only law firm based in the Middle Temple Inns of Courtadjacent to the Royal Courts of Justice. Generally many solicitors are unfamiliar with the Insolvency Rules and the minutiae of the bankruptcy process, we are experts in dealing with matters surrounding individual insolvency.  Our team have unparalleled experience at cancelling bankruptcy orders, liaising with the Official Receiver, providing a solicitor’s undertaking, representing you at any bankruptcy hearing at the Bankruptcy Court, at the Royal Courts of Justice (Rolls Building), or the relevant High Court District Registry or County Court with jurisdiction under the Insolvency Rules.

Our expert Bankruptcy Solicitors & Barristers provide professional and specialist legal advice to guide you to the best legal outcome. Our team of London lawyers are based in Middle Temple adjacent to the Royal Courts of Justice. For your case assessment and for more information about our legal services get in touch using our online form, ☎ 02071830529 or email us on .
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