Bankruptcy fees

Anyone having substantial debt finds bankruptcy as the last option to get rid of his or her critical debt situations. If you think that you will not be able to clear your debts from your available sources of income, you can see bankruptcy as your last resort. Bankruptcy has many bad financial implications and should be avoided as long as you can. Following your bankruptcy, you lose your assets and your credit records suffer drastically. If bankruptcy is unavoidable, you need to file for your bankruptcy in a County Court by filling up specified forms and paying applicable bankruptcy fees.

What is the bankruptcy fee?

If you want to file your bankruptcy petition, the first thing you need to do is to find your local county court. Along with your bankruptcy application, in England and Wales, you will have to submit a bankruptcy fee of £700, if it’s a personal bankruptcy petition. This fee comprises of court fees of £125 and a £575 fee for the official receiver. You may be exempted from paying the fees or will have to pay a lower fee, if you come under lower income group. If you are not entitled to get an exemption, your bankruptcy petition will not be heard by the court unless you pay the applicable bankruptcy fees.

In some cases, your bankruptcy fees can be divided under following heads:
£450: For covering your bankruptcy managing costs. This fee is to be paid in all cases.
£150: For covering costs related to the court proceedings. You can be exempted from paying this fee if the case of an income support is applicable on you. The court staff can guide you in this regard whether you need to pay this part of your bankruptcy fees or not. If your income is less than £14000 per annum, this fee will be waived off but to avail this benefit, you need to fill the Waiver Form ex160.
In Scotland, if a person owes a debt of at least £1500, he or she can file a petition to obtain a certificate of sequestration and will have to pay a fee of £100 to the Accountant in Bankruptcy (AIB). After obtaining this certificate, the person can apply for bankruptcy within 30 days of getting the certificate. If the person fails to make his or her application within 30 days, his or her application will be rejected and the fee of £100 will be forfeited. The process will be started again and the person will be charged a fee of £100 again.
If you are filing for bankruptcy in the Northern Ireland, you will have to pay following fees:
A Court fee of £120
A deposit of £250 as your bankruptcy administering cost
Fee for swearing the statement of affairs

In a County Court, you won’t have to pay any charges or fees to pledge an affidavit that forms your testimonials related to your bankruptcy affairs. But you will have to pay a fee of £12 if your case is being heard at the High Court. That means if you are filing your bankruptcy petition in London, it will cost you £612 instead of £600.

If both the partners of the married couple are applying for bankruptcy, then both of them will have to pay separate bankruptcy fees. In the same manner, if several partners of a business file for bankruptcy, they will have to pay bankruptcy fees separately. If all the partners file a petition for a joint bankruptcy, they may have to pay a single bankruptcy fee together, as applicable on them.

Paying for your bankruptcy fees

There are some charity organizations in UK that can help you in paying your bankruptcy fees. You can contact your local Citizens Advice Bureau in order to get details of the charity organizations operating in your area.

If you are finding it difficult to manage your bankruptcy fees, you can check with the water, gas or electric suppliers of your area. In many cases, they provide you with grant funds to help you manage your various types of expenses.

The court will accept your bankruptcy fees through some specific modes only. They will not accept your personal cheques. You can pay your bankruptcy fees through the following modes:
in cash
through postal orders
by a bank cheque or a solicitor’s cheque. Cheque should be made payable in favour of Her Majesty’s Courts Service
You will have to pay your applicable bankruptcy fee in full at the time of filing your petition in the court.

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