filing for bankruptcy- is the deposit refundable?

authornick

Hi there,

I'm seeking to file for Bankruptcy at some point this year to clear my snarled tangle of post-uni debts. I've done a little research, and discover I must raise £500 cash in order to file my claim. About £150 is required to pay the court fees, for which there is a form to reclaim some or all of this fee. As for the remaining £350 odd, this is termed as a 'deposit'. My question is this: do I get this deposit back when/if I'm declared bankrupt? Or do I get it back at the end of the bankruptcy period when I file for a discharge? Or do I never get this money back at all?

I'm asking because my girlfriend has offered to loan me some cash to file for bankruptcy, and I need to know the position on when I can pay her back.

Thanks in advance to anyone who can help, Nick

G-G_4

It is Court fees and the fees for the Official Receiver.

I think you can get off the £150 ish fee for the court, if you are on low income or certain benefits.

The £350 fee is not negotiable and non-refundable..

Hope that helps, and good luck x

philnicandamy

The fees are the same at all courts.
For each person it is a £150 court fee and a £335 deposit for the OR.
If you are on certain benefits then you can be exempted to £150 court fee.
• Income-Support
• Income-Based Jobseeker’s Allowance
• State Pension Guarantee Credit
• Working Tax Credit with no element of Child Tax Credit
Or if your income is low enough then you may get it waived on those grounds.

The £335 for the OR is always payable though..its classed as a "deposit" because the true OR costs are over £1,000 (they try to claw back money from creditors)

authornick

Darn... but thanks anyway... Who'd have thought you'd have to pay to declare yourself bankrupt? Tis a strange world in which we live...

philnicandamy

yup....strange world

one thing to remember though...if your borrowing fees with the intent of paying back the official receiver wont take kindly to that...i'd be very suprised if your allowed as you have to work to a SOA & a tight budget after the OR goes through everything, if you start to pay your girlfreind back you could find yourself landed with a BRO as it can be seen as favoring a creditor..the whole idea of going BR is that you dont have the cash to do things like that so once she gives you the cash you wont be able to pay her back as she'll be classed as a creditor....usually people do as lizzibuff suggested might be an idea?

Lizzibuff

Don't know if this will help but i know many people have ( and me included) raised the money by taking a cash advance from a credit card or increased their overdraft to get the necessary cash.

its not ideal but if you have no other option - it's something im sure the or's are used to seeing.