Insolvency fees

the_brown_stuff

Hi guys
Merry christmas to you all.
I have a small question which may or may not be obvious.
Bankrucy fees are approx £750 which I am really struggling to afford right now , what happens if I let someone makes me bankrupt ? Who pays the fees then and what consequences will it have on my situation ?

Thanks

Ineedaname

The fees are a total of £700 at the moment. Are you in receipt of any low income benefits? If so, then you may be able to claim a reduction or exemption from the Court fee of £175 which would help.

Creditors are reluctant to actually make someone BR as it costs them a lot more, around £1500 I think. They are more into harrassment in the hope you will pay up at least something. They are also well aware that the likelihood of them seeing any money after you are BR is slim as any money you pay into your BR via an IPA goes to cover the OR's fees first and then is spread pro-rata across all your creditors.

So you could be sitting around waiting a very long time for someone to make you BR, unless one of your creditors is HMRC who are the most likely to push for BR. In the meantime you'll either need to make some arrangements for token payments or put up with creditors chasing you for money and potentially going to Court for a CCJ to try and get some money out of you. Do you really need the stress?

Have a look at the Look Here First thread as there's some links to places who may be able to help with the cost of fees. Also ask your local CAB if they are aware of any local body who might be able to help.