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Insolvency Service to hike bankruptcy petition fees 19 April 2011

For debtors, the deposit on a bankruptcy petition will increase from £450 to £525 and the creditor deposit will increase by £100 to £700.

The creditor’s deposit on a winding up petition will also rise from £1,000 to £1,165.

A spokesperson for the Insolvency Service said: “We accept that the increase in the deposit that must be paid for a bankruptcy petition will not be welcome for those who find themselves in financial difficulty and for whom bankruptcy is the only option.”

Changes will not be made to administration fees in bankruptcy and company cases. There will also be no increase to the secretary of state or fee band charges.

The spokesperson added: “The deposit paid on a petition by a debtor is only a contribution of the cost of administering bankruptcy cases with the balance being provided from the recovery of assets. The overall cost of administering a bankruptcy case has not increased since 2007.”

The Insolvency Service also pointed out that there are alternative insolvency measures to bankruptcy for individuals with little surplus income, few assets and less then £15,000 worth of debt. These include Debt Relief Orders that were introduced on April 6 2009.

 

 

 

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