What are the personal bankruptcy fees?
In order to know the personal bankruptcy fees and costs you need to understand that becoming bankrupt is an option if you are unable to pay your debts, It is also important to know that it is not necessarily the cheapest option and there can be ongoing costs. As incongruous as it appears, you need money to apply for bankruptcy and the fees are significant.
If you are considering entering bankruptcy, or are at risk of someone applying to make you bankrupt, call Chamberlain & Co on 01138 681 203 or email advice@chamberlain-co.co.uk. Our professional team are on hand to discuss all the options.
Here, we explain what costs you might expect to pay.
What bankruptcy fees and costs do I have to pay?
The total cost to go bankrupt in the UK is £680. This information is correct as of July 2018.
The fees and costs for bankruptcy are divided into two distinct areas, adjudicator fees and a deposit. The deposit comprises the majority of the costs involved, being used to cover the costs of processing your application.
To apply for personal bankruptcy in the UK, you will need to pay:
- £130 in adjudicators fees
- £550 deposit
There are no attorney fees or bankruptcy court filing fees in the UK.
Can I get help with bankruptcy fees?
While the cost of entering bankruptcy is significant, it is possible to get help. With bankruptcy fees, it is not necessary to pay the entire costs up front.
If you apply online, you will be given the option to pay in instalments. Once you have completed the online application form you will be able to choose to pay in as many instalments as you can afford.
The minimum instalment at the time of writing in July 2018 is £5 and instalments do not have to be at the same amount each month.
If you decide to pay in cash, you will not be able to pay in instalments.
If you are having trouble getting your application fee together, there are places that operate nationally and locally that can help. With more than 50 years’ professional experience at Michael Chamberlain, the team can talk through your options. We will help give you with reasoned and responsible advice on the best places where help with your bankruptcy fees and costs could be found.
What bankruptcy fees are there if my creditors make me bankrupt?
It is also possible for your creditors to apply to make you bankrupt. They can work together, or one individual may make an application.
If your creditors do apply for your bankruptcy you will not have to pay the £680 fee.
All costs of the bankruptcy petition must be paid by the person presenting the petition to court. In order for your creditors to apply, they will have to prove that you owe them £5,000 or more.
Are there any other costs?
Once you are declared bankrupt there may be additional costs to pay. Any costs that are due will come out of your:
- Savings
- Assets such as property and cars
- Spare income that is not necessary for basic living expenses
The actual costs involved with the process will vary from person to person and situation to situation. However, they will typically include:
- Administration costs
- Professional fees and expenses
- Costs associated with selling your house, car and any other assets
If you are not able to pay these costs once your assets and income have been assessed, you will not have to pay them.
Pension savings are a protected asset. This means that your pension will not and cannot be used to pay for your bankruptcy costs and fees.
Reduce your stress with Chamberlain & Co
With our experience, professionalism and integrity, we understand that facing personal bankruptcy is incredibly stressful and can cause physical and mental health issues. We can help reduce this burden somewhat, act as a supportive hand and discuss all alternatives, such as a Debt Relief Order (DRO) or an Individual Voluntary Arrangement (IVA).
To discuss your options and how we can help, get in touch with Chamberlain & Co today or call us on 01138 681 203.
This information relates to people living in England and Wales only. If you live in Scotland or Northern Ireland, you cannot apply to make yourself bankrupt in England or Wales.
It is only possible for individuals in England and Wales to apply for or be made bankrupt. If you are a limited company, there are other options for dealing with business insolvency which Chamberlain & Co can assist you with.