Bankrupt on Benefits

Clare551

I am considering bankruptcy as my final option now. I have heard things of court fees and payments afterwards of up to about 200 a month etc... Does this apply if you are on benefits?

I am currently in receipt of Incapacity benefit, income support, child tax credit, child benefit and DLA.

gratton20

Hi

I am not an expert but just gone through BR as a person on benefits and I can answer your question.

Firstly though PLEASE get independent free advice from CCCS or CAB or National Debtline, BEFORE you decide if BR is the right option for you. You MUST get proper advice and these agencies make no charge and work solely with your best interests in mind. Never pay for "help" from commercial companies!

Now, assuming you DO go BR. If your ONLY income is benefits and your partner has no income or just benefits then a IPA CANNOT be imposed and you will NOT have to pay anything excpet your initial £345 to the OR as a deposit, and you will have to pay the court fee of £150 but can claim expemption from that.

If you have some wages as well as income then sometimes that can affect the assesment, but if you ONLY have benefit income you will NOT have to pay anything towards your debts. It also means that you don't have to take such great care in doing your SOA as the OR will not be quite so interested in your spending pattern as it is irrelevent if no IPA is possible.

Does this help? Good luck and welcome to the board .. one of the "brains" will be along soon to give proper detailed advice I am sure