In order to go bankrupt in the UK, you have to pay bankruptcy fees to the court.
Bankruptcy fees in the UK comprise a court fee and a bankruptcy deposit.
In England and Wales:
- the court fee is £180 and
- the bankruptcy deposit is £525
In Northern Ireland:
- the court fee is £115,
- the bankruptcy deposit is £525, and
- there is a solicitor’s fee of £7
- Sequestration (Scottish bankruptcy): the Accountant in Bankruptcy fee is £200
- Minimal assets process (MAP) bankruptcy: £90 application fee
- Low income low assets (LILA) bankruptcy: £200 fee
If you are on a low income or receive certain benefits, the court fee may be waived. Whatever your circumstances, the bankruptcy deposit always has to be paid.
Once you have petitioned for bankruptcy, the official receiver will look through your finances and decide if you need to pay anything towards your debts. You may have to pay a monthly contribution towards your debts for up to three years. This is called an income payment arrangement. It is payable if you have available income of more than £20 per month after paying your household bills and essential living costs.
The official receiver will not make you pay anything towards your bankruptcy if you cannot afford to, and will always leave you with enough money to live on each month.
If you have any valuable items, such as property, a vehicle, jewellery or savings, the official receiver may arrange for them to be sold, and the money generated will be used to pay back some of your debts.