A major overhaul of the bankruptcy fee structure is needed, the Insolvency Service has warned, after declaring it cannot sustain the current level of cases where the assets have no value.Stephen Speed, agency chief executive of the Insolvency Service, made the warning during a debate on fees generated for insolvency practitioners (IPs) and creditors from bankruptcies at Insolvency Today’s annual conference.

Speed warned that the current volume of asset-less bankruptcy cases the Service received was unsustainable, and had almost reached a point where taxpayer money would be needed to cover the shortfall. “The issue is who funds fund-less bankruptcies,” he said. “We are trying to get the number of cases down and we have got to reduce cases to a level where...Read more here---> Warning issued on bankrutpcy fees