The truth about bankruptcy
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Bankruptcy in England costs £700 - which is a lot of money, especially if you're struggling with debt. There is help available if you need it, however.
If you're struggling with debts, the last thing you'll want to think about is paying out even more money for bankruptcy fees - but it'll help to be prepared.
Knowing about all the fees and payments that you may need to make before and during your bankruptcy could help you decide whether it's the best solution for you. If you're not sure, you should seek professional advice as soon as possible.
If you fill out our debt solution finder below, a debt professional will get in touch to talk about your situation with you.
Bankruptcy fees in England and Wales cost £700. This is made up of a £175 court fee and £525 to the official receiver. If you know about these fees well enough in advance, you may be able to budget and save for them over a few months.
If you don't think you'll be able to afford the bankruptcy fee in one go - don't worry. You may have a number of options.
For example, you might also be able to pay the fees in instalments if it's clear that it's the best option for you. You may also be able to get financial help from certain institutions or charities - visit your local Citizens Advice Bureau for more information.
Will I have to make other payments?
The up-front fees aren't the only costs you'll have to consider when going bankrupt. You may have to make further payments to the person organising your bankruptcy for up to three years.
You won't be asked to do this if you can't afford to, though.
The official receiver will look through your finances and decide whether you should pay anything towards your debts. If you have more than £20 left over after you've paid all your essential living costs each month (like bills), you'll probably be asked to pay towards your bankruptcy.
If you have any valuable assets - like a house - these may also be sold to repay some of your debts.
And don't forget the impact that bankruptcy will have on your credit rating. It'll show up on your record for six years, making it harder to borrow money in this time.
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by Christine WalshBack to blog home