Bankruptcy Fee Increase 2009

fermi

penguin83 wrote: »

Hi all - apologies if this has already been posted - did a quick search and couldnt find it but Fermi feel free to shout!

Thanks.

I saw this the other day, but then forgot about it.

In black and white here:

The Insolvency Proceedings (Fees) (Amendment) Order 2009

sieve

fermi wrote: »

In black and white here:

The Insolvency Proceedings (Fees) (Amendment) Order 2009

They make these things soooo easy to read and understand don't they! :rolleyes:

Lost2

sarahspain wrote: »

I will confirm with Brighton court, as our BR is on the 6th April and we were told £495

That is the fee you will pay now, up-until 6th April

Mister-D_3

I was told by my local court that the fee you pay on the day that you petition for your BR is the fee that is currently in force (so if you petition on 31st but for some reason not "heard" on that day then you will pay the fee in force on the 31st)

HTH

MrsCaptain

If anyone is concerned about the cost of Bankruptcy, there will soon be an alternative.

As of the 6th April 2009 it'll be possible to apply for a Debt Relief Order for a fee of just £90.

Undertaking a DRO is a very different process to going bankrupt but the objective is still the same. ie to relieve yourself of debts you have no prospect of repaying.

Full DRO information can be found on The Insolvency Service website, but here are the main points (as I understand them) in laymen's terms.

1. DROs are processed through authorised intermediaries like the CAB. The courts aren't involved at all
2. The only fee for applying for a DRO is £90, which can be paid in installments
3. DROs are administered by The Official Receiver
4. DROs will only be granted if you owe £15000 or less, have less than £300 worth of assets and you have less than £50 worth of disposable income each month after essential expenditure. (there other restrictions surrounding previously bankruptcies etc)
5. You will be subject to the same kind of restrictions as you are under bankruptcy, ie not being able to take out more than £500 worth of credit for the length of the DRO
6. DRO lasts 12 months. There is no allowance for 'early discharge' like there is for bankruptcy
7. Unlike the bankruptcy, only the debts you declare are included in your DRO. You will still be liable for any debts you haven't included. This includes under-egging debt values.
8. If at any stage the Official Receiver finds out you've not been truthful about your circumstances, assets or debts they can revoke the DRO, meaning you'll be liable for all your debts again.

There are a lot of people who won't be able to take advantage of the new DROs because of the strict criteria but it should help those people who have nothing, are on a low income and are genuinely insolvent with relatively low liabilities.

For full details, google 'Debt Relief Order' and click on the insolvency service website. (sorry, can't post link as new user)

MrsCaptain

Plus.... regarding the Bankruptcy fee, if someone pays this for you they will get first dibs if there are any funds left once the Official Receivers have taken their fees.

So if you've a £5k car and you can get to work by walking or taking the bus the Official Receiver will probably take your car but on the plus side whoever paid your bankruptcy fee are likely to get their money back.

(this only applies to the bankruptcy fee, not the court fee)

stellaaaa

hi there just wondering if anyone could tell me about this new law thats supposed to be coming in this year where if you are struggling with your debts they just wipe them .because im having an awful time ive lost my job nd now on benefits and i just cannot afford to keep up the repayments any advice would be much appreciated thnx

philnicandamy

That would be either bankruptcy or a debt relief order both incur a fee to do....unfortunatley no law exsists that just wipes your debts cost free..
http://forums.moneysavingexpert.com/showthread.html?t=1597255