Bankruptcy Fee's

zenseeker

I have been seriously considering bankruptcy as all other attempts at sorting out our debts, including IVA's and help from the CAB have failed miserably, but I have discovered that we need to pay close to £500 each in fees to declare ourselves bankrupt, but we just don't have nigh on £1000 lying around! Is there anyway around the fee?

chelseabun_3

Hi zenseeker!
Welcome to the board!

You may be entitled to have the court fees waived - there's an application form for that (see link in 1st thread on this board), but you will have to pay the OR's fees - £350 each. Can you stop paying your creditors, and save up for the fees? That's what a fair few people here have done. There are letter templates to send to creditors if they become difficult while you're saving up. Hope that helps! CBx;)

zenseeker

Thank you for your reply, I suppose that we could try and save up, but even so it will be a long hard slog to amass £700 for that option as I am out of work in an area with few job prospects (and believe me I have been trying) and my wife is unable to work due to severe depression, not helped by mounting debts

So saving £900 on an income of less than £100 a week is going to be some juggling act, and not very soon in coming either.

I have heard that you do not have to pay if one your creditors declares you bankrupt, but I'm not sure how likely this will be.

fiveyearplan

Hi Zenseeker and welcome. Depending on who your creditors are it is highly unlikely they will make you bankrupt. I wouldn't hold your breath! Do you have anything of value that you could sell? Or lots of things of not much value?

chelseabun_3

So sorry to hear about your situation - I really hope you and your wife get some relief from the stress soon.

I know some people have used their existing credit cards or overdraft to pay the fees. The OR seems to overlook using more credit to pay for BR, but I wouldn't recommend taking out a new card just to pay BR. Have you got one with a bit left on it?

The only creditors who do make people BR are Council Tax, HMRC and American Express (oddly!) No one else will do it as it costs them £1000. You also have to wait a very long time for it to get to BR, with lots of unpleasantness in between.

Can you ebay anything? Someone on here not long ago sold their furniture to raise the fees, then replaced it all through freecycle (freecycle.co.uk - very good for freebies!)

Hope that helps - keep asking on here - folks are very helpful and kind. CBx;)

zenseeker

We have very little of value that we could sell, and the only things we do have are items that we couldn't really afford to live without, even for a short time. We have a PC, TV, DVD Player, but my wife is pretty housebound and relies on them as a source of entertainment and for keeping in touch with people.

I don't even know anyone who has that kind of money spare that they could lend to me, everyone is broke right now.

I have another appointment with the CAB, but they seem to have helped me as much as they are able.

skylight

Some water boards have BR "funds" that you can apply for - but this is probably unlikely as so many would be asking. But try your water supplier.

Are you claiming benefits? Which ones?? If on certain benefits you will get the court fees waived (about £150 each), so its "only" the £350 odd each to find. Borrowing is not great, but perhaps (if you have not taken out too many already) a social fund loan to cover these - not telling them you need £700 for BR, but a new fridge and washing machine or something. They would take a few pounds or so out of your benefits each week though, so not ideal but perhaps an option in a few months when you have saved something towards BR so you need to borrow less.

zenseeker

We are receiving disability based Income Support, so we probably qualify for a Social Fund loan, something I hadn't considered...thank you for the idea.

Sadly, I am overdrawn, over limit and have no way of borrowing anymore than I already have.