If at least 25% of creditors (per total value of debt) agree that the administrator’s remuneration is excessive, it is within their rights to apply to the court for a reduction.

Legal Considerations

Supporting evidence will be the principal factor in the court’s decision. The court will be interested not just in the time that has been spent, but on the reasons for the time being spent in that area, and the value that has been achieved

Should the court not find sufficient evidence to impose a reduction of fees upon the administrator it has the power to dismiss the application. Creditors will always have an opportunity to extend the court for an ex parte hearing, however.


Creditors considering applying to the court should be aware that, unless the court ordered otherwise, the costs of the application will be payable by them.

Appeal in Court

If such an application proves successful, the court will order the administrator to reduce their fees either at a reduced rate, or a reduced total amount.

Need Advice about Administration?

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