The costs regime in insolvency litigation is outdated and not fit for purpose, especially when it comes to the clawback claims designed to allow officeholders to restore the insolvent estate when assets have been deliberately dissipated. Many such claims can become uneconomical to run, especially where recipients of dissipated assets have no desire to preserve them but every incentive to diminish them with their own costs.  Often a sale or assignment is the last resort to seek justice against wrongdoers in such situations.  

Reform is needed to rebalance the scales. A return of the LASPO exemptions to make ATE premiums and CFA uplifts recoverable again should be the absolute minimum, but a wholesale overhaul with more innovative options should not be dismissed.  Some of the solutions could be relief from court fees, relief against adverse cost risk or even access to central funds (akin to costs in private prosecutions) for insolvency practitioners.