OR's deposit to increase to £525 from June 1st 2011 (Total = £700 to go BR)

fatbelly

Shamethere's nothing to compensate the bad news - like increasing the DRO limit

Worcsman

skylight wrote: »

Tut tut.

In my day, BR was the price of a tank of fuel.....

LOL It still is!

WLITC

Wow, had to fish out my reciept to remember how much I paid last year (March 2010) and it was £510, so from June 1st, people will be paying £190 more than just over a year ago .. outrageous, thats almost a 38% increase in the cost of the fees.

debtinfo

As most people know the majority of bankrupt's end up only paying a proportion of the cost of their bankruptcy and rely on the assets of other bankrupts to make up the difference. The current cost of a bankruptcy is £1,715 of which people pay a minimum of £525. Looked at that way it is still a fairly good deal although i understand the difficulties which people have accessing bankruptcy in some circumstances which will now obviously increase. With DRO's in place and possibly raising the limit in the future i would not be suprised if at some point in the future bankrupts are asked to cover the full cost of the bankruptcy like they are now in some european countries

immoral_angeluk

Ah the great insolvency irony... charge people that have no money a whack load of money to sort their problems out!

Angiepange

debtinfo wrote: »

As most people know the majority of bankrupt's end up only paying a proportion of the cost of their bankruptcy and rely on the assets of other bankrupts to make up the difference. The current cost of a bankruptcy is £1,715 of which people pay a minimum of £525. Looked at that way it is still a fairly good deal although i understand the difficulties which people have accessing bankruptcy in some circumstances which will now obviously increase. With DRO's in place and possibly raising the limit in the future i would not be suprised if at some point in the future bankrupts are asked to cover the full cost of the bankruptcy like they are now in some european countries

Thats interesting DI.

Between my DH and I, we paid in just under £6k into our BR so I guess the OR's fees were well covered with some going to the creditors too.

Alot of money to find though for people struggling already

debtinfo

yes so inyour case a bit of the money you paid would also have gone to pay for other peoples bankruptcies, which obviously does not affect you much but is a loss to your creditors

Angiepange

debtinfo wrote: »

yes so inyour case a bit of the money you paid would also have gone to pay for other peoples bankruptcies, which obviously does not affect you much but is a loss to your creditors

I see, thank you.

fermi

I've got no problem with people who can afford it being required to pay the costs of their bankruptcy.

It's just front loading this much of the fees that is getting to the point where it is arguably unfair. Especially as there are no provisions for means testing the OR's deposit, unlike the court fee.

Presumably part of the thinking is to discourage people from going BR in the first place? Or at least discourage those who are unlikely to provide a revenue stream for the IS post BR, due to low disposable income?

i.e. If you can afford the OR's deposit, then you are more likely to be a good candidate for an IPA later on.

fermi

immoral_angeluk wrote: »

Ah the great insolvency irony... charge people that have no money a whack load of money to sort their problems out!

lol - much more succinctly put. :cool: