The costs associated with bankruptcy in England, Wales and Northern Ireland are set to increase for the first time since 2011.
Following a review by the Insolvency Service the changes, announced on 30th June and subject to Parliamentary scrutiny, will come into force on 21st July.
The changes will also see the introduction of a new Official Receiver’s General Fee which will replace the current Secretary of State fee.
The old cost of a bankruptcy petition was £705. Since April of this year, and the switch to an online application process, the cost of an individual’s petition has reduced to £655, consisting of a £525 deposit and a £130 adjudicator’s fee. The deposit is now to increase to £550, an increase of £25.
“This is the first increase in the bankruptcy deposit for some five years and despite this increase, the overall cost of applying for your own bankruptcy, under the new online application process introduced earlier this year, still works out at £25 cheaper than under the old method of lodging papers in Court.”
Michael Bellingham, Insolvency Practitioner, Harrington Brooks
The new pricing structure will also see the introduction of a £50 fee to cover the administration costs associated with handling dismissed or withdrawn petitions.
Changes in bankruptcy
From April 2016 the process of petitioning for your own bankruptcy switched to an online procedure. This means that anyone now wishing to declare themselves bankrupt must make an online application which is then reviewed by an adjudicator. Anyone considering bankruptcy should seek independent advice before making an application.
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