me and my partner are both declairing our selfs bankrupt, after alot of careful consideration, cab meetings etc. the problem we have is as we are both on low incomes, we cannot afford the fee of going bankrupt as it is around £1000 is there a way we can spread this payment? or are there any other options on how to pay this fee, as we really cannot afford anywere near this amount, if we could we wouldnt be going bankrupt. thank you in advance for response.
The answer really depends on how much your income is, yes there is a chance you can have a reduction of the court fees or not pay any at all as long as your provide proof of low income/benefits etc. But I have not heard anything about paying it over time.
You have not specified if you have children as this will also be taken into consideration by the courts along with your income.
There is more information about court fees on the courts website, I have pasted a link for you below.
I take it this is your last resort? Have you looked down all other avenues? as there are other options available. The new arrangement that has recently been made available is the Debt Relief Order, if you have no assets and virtually no income to pay creditors, after paying your essential living costs this could be an option and is much less drastic than bankruptcy but it depends on how much you owe.
Bankruptcy fees are certainly an obstacle for many people in England and Wales (they are much lower in Scotland).
The fees break down currently as a deposit of £360 plus a court fee of £150. If you are declaring bankruptcy in the High Court there may also be a fee for swearing the oath which is I think £14.
This means for a single person the fees can come to £524 and for a couple £1044.
On top of that there are companies who charge hundreds of pounds for filling in or checking your bankruptcy forms. Incidentally the Debt Advice Foundation and the CAB will do this for free.
To answer your question you can’t pay your fees in installments.
If you are on a low wage the court fee of £150 can be waived – that would save you £300 and you should contact your local court to see if you qualify for this.
The money has to be available in cash on the day that you petition. Its simply a matter of saving it up I’m afraid or borrowing it off a relative or friend.
For debts of less than £15000 there is a new insolvency procedure called a Debt Relief order that only has a fee of £90, one of you may qualify for that. IVAs generally have no up front fees.
You don’t have to declare bankruptcy at the same time, it might be an idea to have one of you do it one month and the other the next.
I know this is about 5 years after the original question was asked, but if anyone else happens to stumble upon this thread there is a guide which can help you with the bankruptcy fees should you be struggling to come up with the money.
Bankruptcy will be a good options but you need to consult an expert
first for the advices and the steps to be made.
I think Bankruptcy will be a good options but you need to consult an expert first for the advices and the steps to be made.