A reader asked:
I can’t afford to go bankrupt! Is there anyone that can help with the fees?
The bankruptcy fees in England and Wales are £680. This is made up of the £550 Official Receiver’s fee and the £130 application fee.
£680 is just stupidly high – most people go bankrupt because they are broke and they don’t have hundreds of pounds in their bank account. The fees used to be reduced if you were on a low income, but that doesn’t happen any more.
If you are struggling to get these fees together, this page looks at your options. How to pay your bankrupt fees looks at the mechanics of actually making the payments.
Contents
Help from charities
Some utility companies run trust funds that help customers with utility debts and other financial problems, including paying bankruptcy fees.
Some of them won’t consider applications if you are a homeowner or if you have been bankrupt before. Your local Citizen’s Advice will be able to sort out which ones are appropriate for you. Most of them prefer the application form to come from Citizen’s Advice not you personally, as they need to know that you have had good debt advice that bankruptcy is a suitable option for you.
Other charities may be able to help.
Sometimes these are local, sometimes you may be eligible because of your current or previous careers, for example, SSAFA helps people who have served in the armed forces (including National Service) and their families. There are specific charities for people who have been civil servants, postmen, nurses, shop workers, bank workers and many other groups.
Turn2Us has a lot of information on grant-giving charities. Your local Citizens Advice is the best place to get advice and help with this, as they may know of any local charities that only operate in your area.
Save it up
You can pay the bankruptcy fees in instalments, from a debit or pre-paid card. This doesn’t have to be a regular amount per month. If some of the ideas below will get you bits of money, keep putting it away, a bit every month, so you won’t be tempted to spend it.
Stop paying unsecured debts
If you are currently making payments to unsecured loans and credit cards, including payment arrangements or paying a DMP, then you should stop paying these and save this money up.
If you get cross letters and calls from your creditors, tell them you are taking advice on your debt options. This will only be for a few months until you go bankrupt.
Get an affordability refund?
If you have had any expensive credit, it is possible that these were “not affordable”. If you complain then you may get a refund of interest and charges which could all go towards those bankruptcy fees.
See the articles on making affordability complaints, which include template letters.
Help from a relative
You may not want to discuss your finances with relatives, but if they already know you have big financial difficulties, could you ask for an early birthday present?
Sell things to raise the money
If you have any savings, you will lose these when you go bankrupt, so you may as well use them now to pay the fees. £50 in premium bonds – this is the time to cash them in and add them to the fees.
Most people don’t lose any assets when they go bankrupt – see Will I lose my lawnmower and other bankruptcy questions. But if you do have something valuable that you will lose when you go bankrupt, it makes sense to sell it beforehand to raise the money for the bankruptcy fees. Keep a record of what you sold and for what price.
You need to selling something for a fair second-hand price if a relative or a friend is buying it. Don’t sell your nearly new BMW to your brother for £1,000 – if you try this the Official Receiver will demand your brother returns the car. For a car, if you use the Parkers valuation to set a fair price you will be fine. If you want to sell jewellery to a relative, get an independent valuation first etc.
Even if you don’t have anything “valuable”, you may be able to raise some money by decluttering your wardrobe and house – £65 from a car boot sale, £80 from ebaying things, it can all add up.
Stop paying some bills?
Debt advisors don’t like suggesting that people stop paying essential bills!
But if you are very close to getting the bankruptcy fees together, and not paying a couple of bills will get you to the magic total, you could think about not paying council tax, gas, electricity or water bills.
The current year’s council tax is included as a debt in bankruptcy. It is normally a very bad idea to not pay council tax – councils take you to court faster than any other creditor. However, if you are ready to go bankrupt and the money you would have paid to the Council this month will be enough to have the bankruptcy fee paid, then not paying this month would be a good idea. If you have never had council tax arrears before, you could consider missing two months payments.
Same approach for other utilities. Any debts here will be included in your bankruptcy.
Be careful about doing this. If you change your mind about bankruptcy, or something crops up and you have to delay going bankrupt, then having council tax arrears or energy debts is going to make your life more difficult.
And don’t miss rent payments!
What are your other options?
Don’t wait for a creditor to make you bankrupt
This isn’t likely to happen. Unless you have a lot of assets, a creditor who makes you bankrupt will get nothing, because the Official Receiver’s costs have to be paid before any money goes to creditors, and these can be extremely high.
Unless you have a house with a lot of equity (in which case you should be looking to sell the house, not go bankrupt at all) the only creditors that will sometimes make you bankrupt are HMRC and local councils. And even if you owe them a lot you can’t rely on this happening.
Don’t give up and choose an IVA instead!
Not being able to afford the bankruptcy fees is the worst possible reason to choose an IVA, where you have to make monthly payments for at least 5 years. Most people don’t have to make any monthly payments at all in bankruptcy.
And about 30% of IVAs fail, leaving you back with your debts. Bankruptcy doesn’t.
Decide if bankruptcy is the better option for you by getting advice from an impartial adviser such as National Debtline on 0808 808 4000 or your local Citizens Advice. If it is, then stop paying your unsecured debts and save up the £85 or £110 a month you would have paid to your IVA towards your bankruptcy fees.
Could you be eligible for a Debt Relief Order (DRO)?
DROs used to have very strict criteria, but in 2021 and 2024 this has been widened – see What is a DRO? for details.
Now if you owe less than £50,000. you are renting and you have very little money to make payments to your debts, a DRO may well be a better option for you than bankruptcy. And there is no fee now for a DRO. Or any monthly payments to make.
A Guide to Bankruptcy – what really happens
The big questions about bankruptcy
Bankruptcy timeline – what happens when
carol says
I was on a debt management plan with Baines and Earnst for about 3 years and claimed a lot of PPI compensation to pay off some of my debt. unfortunately my work circumstances changed and lost my house. I now live in rented accommodation. I owe a substantial amount of money to the bank when the house was eventually sold, I then discussed my problem with B & E and they advised me bankruptcy was the best option for me I was advised to stop paying my creditors on the plan and inform them of my plans and I managed to pay the fees for their support to Baker Evans a subsidiary of Baines and Earnst, but I am struggling to find the £700 to start the process. Would it be possible to ask Baker Evans to fill in the necessary forms as proof I have taken good debt advice.
Kind regards
Carol O.
Anonymous says
hi Carol,
I am sorry to hear of your circumstances and also that Baker Evans have been profiting from your situation. You don’t actually have to produce written proof that you have taken good debt advice. The judge will usually ask you if you have , so just say Yes, I have been advised by Baker Evans”.
Regarding the bankruptcy fees, I hope this post has given you some useful pointers. Your local Citizens Advice Bureau may also know of some local charities that could assist – it’s worth a try. Otherwise it is a question of putting £5 or £10 a week aside until they are saved up.
(I have deleted your surname as i wasnt sure you would want your comment to be found by anyone that googled your name.)
paula says
Hi. Its such a mess I had to leave family home due to domestic violence in which my husband refused to have anything in his name the debts are 25,000. And now I cant work due to disability. I’ve been awarded high rate for both mobility and care allowance and getting 71.40 per week ESA. Is there any help I can get to go bankrupt? Thank u
Debt Camel says
hi Paula, it sounds like bankruptcy is the best route for you and I would expect that you would be helped by one of the charities mentioned in this article. They prefer to receive applications through an approved debt advisor, so I suggest you go to your local CAB and ask them to help you apply.
linzi says
Hi,
I have massive debt including a shortfall on my second/third mortgage of around 30,000 with also other debt. I got behind with council tax and they have been handed over to bailiffs – bristow and sutor, they did a walking possession and wrote my goods down and put me in an arrangment where i had to pay £30.00 per week. I have been doing this for over 12 months and never defaulted on this. I have since had a letter from them saying they had recieved another account so my arrangment has been deleted and they now wany 78.00 per week. I cannot afford this. I have enquired about bankruptcy but can i take the bailiffs into my bankruptcy. I work part time and recieve child tax and working tax credits i also get help from housing benefit. Any advise would be greatly appreciated and could i get help with the fees?? Thanks
Sara (Debt Camel) says
hi Linzi, the situation regarding bailiffs and council tax is too complicated for a simple answer here and it may depend on the exact dates. I suggest you call National Debtline 0808 808 4000 or go to your local CAB. Your local CAB would also be a good place to discuss possible help with bankruptcy fees as they may know of some local charities that could help.
Mrs D says
Hi Sarah; I have a mortgage shortfall of £95k with Nram. Im now renting & scared if I go bankrupt I will lose this house too. I work for the council so could lose my job too. CAB & CCCS werent much help, just gave me budget sheets & everyone recommends bankrupcy. Ive heard IVA payments are higher & Nram usually reject them anyway. My life has failed, my marriage is collapsing & Im suicidal
Debt Camel says
Hi Mrs D, there will be a way forward, even if though everything seems impossible at the moment. You owe them money, not your life – please call the Samaritans 08457 90 90 90 if things feel desperate.
It is very unlikely you will lose your rented house. And few people working for a local authority would find their job at risk. But you really need someone to discuss your exact situation with in detail. I’m sorry CAB and CCCS haven’t been able to help. Can I suggest you contact CAP (https://capuk.org/i-want-help/our-services/cap-debt-help/introduction). They will be able to talk through your bankruptcy worries, NRAM and IVA concerns, and also possible sources for help with bankruptcy fees.
karen says
Hi
after being sick for almost a year now (ongoing heart/ spine/depression/fibromyalgia) I have found info on this page which had i known about a year ago would have saved me from my health deteriorating to the point i dont want to wake up.
i have recently taken advice from CAB, they did not tell me of the info i have read about here, so i will go back and ask them to apply for bankruptcy fee assistance.
i used to earn exceptionally good money, lost my husband, home, health, then job, was evicted and life just seems to be a continuous spiral downwards….. almost out of control……… thank you for the info posted here, it has given me a bit of hope that there may be light at the end of the tunnel and is not an oncoming train :) x
Rhonda says
Hi I went bankrupt on January 12th and am now getting letter from my appointed trustee about different things one being if I ever claimed a mis sold PPI claim which I did and got a cheque for £1200 last July I saved £800 of this for my bankrupty fees and spent the rest on stuff for my baby due in the September Will be made to produce any proof of my purchases and am I allowed to of paid my fees with it? I’m nervous of what they are going to say it’s been such an awful time
Sara (Debt Camel) says
Hi Rhonda, using the PPI refund (or any other refunds eg from payday loans, guarantor loans) for your bankruptcy fees is absolutely fine. As is buying necessary baby stuff. Just say what you did, it doesn’t sound wildly extravagant to me!
Simon says
Hi
Me and my wife have a past loan we defaulted due the csa hitting me hard from a past relationship. We are worried if we go bankrupt they will take the cars hers is worth about £700 and mine is a 25 year old mini worth about £800. She uses her car for work and mine for school runs, doctors etc. I have a very bad back and can’t walk far so losing any would have a big affect.
Also I hear my wife’s bank account would be frozen? Not sure if this is true and don’t make sense! As if this happens we would then miss other std bills and create more debt. My JSA is also paid in to this account. If this is true how can we avoid this?
Thanks
Sara (Debt Camel) says
Hi Simon, re the cars, this may help: https://debtcamel.co.uk/debt-options/bankruptcy/. There are details about bank accounts after bankruptcy here: https://debtcamel.co.uk/bank-accounts-after-bankruptcy/. It sounds as though you should discuss bankruptcy with a good, impartial debt adviser – it may be your best option but you need to be sure! I suggest National Debtline 0808 808 4000 if you prefer the phone or your local Citizens Advice Bureau if you would like face to face advice.
JONES says
HI IM CURRENTLY TRYING TO FIND MONEY TO DO BANKRUPTCY AND WITH C.A.B BUT FEEL THEY R SLOW WITH ME. IM A SINGLE PARENT AND GONE INTO TROUBLE WITH COUNCIL TAX ARREAS , DUE TO LOT OF ADMISSION TO HOSPITAL WITH KIDNEY PROBS, THE COUNCIL MAN TOLD ME TO GO BANKRUPTCY, BUT IM WORRIED HOW LONG IVE GOT TO GO BANKRUPTCY BEFORE THEY DO SOMETHING ELSE HE TOOK MY COMMITTAL HEARING FROM COURT ONCE HE KNEW I WAS GOING BANKRUPTCY , BUT SADLY I STILL HAVNT FOUND THE MONEY DUE TO XMAS A HOUSE MOVE STRAIGHT AFTER
Sara (Debt Camel) says
Hi Jones, If the council was contemplating a committal hearing this is serious. Your local CAB really is the best place to help you. Go back to them and ask what they are doing and about timescales.
Frances says
Hi, I owed £24,000 4 years ago and started paying into a debt management plan, I was made redundant in January last year and then found out that I now owed £29,000, so I canceled it at the moment due to depression and stress I am on ESA, but desperately want to get back to work, I have been to the CAB for advice and who in turn applied to BG to fund it (I am struggling to live and have no assets, I am in furnished rented accommodation) but BG denied the application (not sure why), I don’t know where to turn too now, I feel like I just want to go to sleep and never wake up, I have worked since being 16 so have no idea what I am doing, need to declare myself bankrupt before I can move forward, any advice would be greatly appreciated
Sara (Debt Camel) says
Hi Frances, that isn’t an easy situation. I suggest you return to CAB and ask for their help in applying to other charities / trust funds for help. BG are not the only option.
craig says
Hi im a one parent family with lots of debt round me and i have a lawyer from CAB that is helping me keep mthly payments to a minium.
She and i are having trouble finding a charity to help go bankrupt im on ESA and the fee is all i have to find to go forward to court.
Sara (Debt Camel) says
Hi Craig, have you looked at reclaiming any PPI? How large are your monthly payments – you could consider stopping them to any non priority debts. Get a sealed piggy bank and put £1 coins in it. Ask any family for help – £50 towards the fees could be the best birthday present ever.
hazel says
Hi me and my partner are in around 6grand worth of council tax arrears, we did start paying it back to Swift but when my partner rang them due to more worries with money they said they hadnt received any payment whatsoever and yet we paid hundreds to the guy who came to our house every week,now we have had another letter through saying that they are going to see if they can make us bankrupt,what could happen to us?I suffer from serious depression,been to CAB with not much support and we’ve only been able to save a little up to now,we seriously need help thank you
Sara (Debt Camel) says
Hi Hazel, I think you need someone to look at your full situation as soon as possible to help you. I’m sorry CAB weren’t much help, I suggest you could call National Debtline (0808 808 4000 https://www.nationaldebtline.org/).
Anton C says
Hi there, One thing that doesnt seem to have been covered here is what would happen if one did not go bankrupt… i.e. couldnt afford it anyway, and just did nothing. Would the creditors then not decide to do it themselves and pay for any fees/costs ? Or perhaps they wouldnt and would just leave it. If you have no assetts, no home, no car, no money, what can they do ? Would it be financially viable for them to make you bankrupt ?
Sara (Debt Camel) says
Hi Anton, it is hardly ever worth a creditor making you bankrupt unless you have a house with a lot of equity in it, because the Official Receiver’s fees are paid first before creditors get anything, and those fees can be tens of thousands of pounds. The only creditors that will usually make you bankrupt if you don’t have any equity are the taxman and sometimes local councils – commercial creditors tend to avoid this because they would have to pay the fees (expensive) and wouldn’t get any return. But if you are sent a Statutory Demand then you can’t assume the creditor is bluffing – get debt advice fast!
Deborah says
Hi
My partner died when I was 35 weeks pregnant, I am a lone parent with debts which have just kept mounting up due to difficulties with repayment, having to cover living costs on my own including all the child minder fees. I have come to arrangements with people I owe money to and I have also been trying to cut costs in other areas. Unfortunately none of this is helping and the pressure is contributing to my on-going depression and PTSD symptoms, raising my blood pressure and making me ill. Recently I have had letters off some of my creditors demanding more payments.
I have spoken to someone at CAB and we felt that bankruptcy was the best idea, so I can hit the reset button so to speak. I don’t have any assets, I rent a furnished property and my car which I need for my job is only about £800-£900 in value. I have no savings left and my partner died without life insurance. Because we lived together and were not married I was told I could not get any widows help, bereavement benefits or funeral cost supports. His pension pay out went into a trust fund for our son, because I was told that I was not next of kin – it is locked in until he is 18.
I cannot afford the £705 fee for going bankrupt but I am trying to save up some money to do this eventually, and I have also applied to see if I have PPI or any other possible refunds. In the meantime is it okay to tell the creditors (which include my bank) that I am intending to go bankrupt?
Sara (Debt Camel) says
Hi Deborah, trying to reclaim money eg from payday loan refunds is a good way to get bankruptcy fees. In your case I wonder if there are any trusts that could help because of your partner’s work or your previous work? It’s generally not a good idea to tell your creditors you are going bankrupt – some may be sympathetic but some may just hassle you more :( See https://debtcamel.co.uk/tell-creditors-bankrupt/ for more details.
mr oneall says
hi
i started my own handyman business last year it started off really well but due to losing my home due to a slum landlord and then my works van dying i have found myself with no money to replace my van and finding a flat is difficult as i have no work coming in i dont no what i can do i have looked at all my options and have none left except bankruptcy but i cxant aford this i live near london please help
Sara (Debt Camel) says
Hi Mr Oneall, this is one of those occasions where what matters is getting you housed and settled in. Until them all your debts can wait! I suggest you go to your local Citizens Advice and ask for their help with housing and benefits.
Charlene says
My husband and I have been on a DMP with Stepchange for over a year. I’ve been on maternity leave and we’ve still managed to keep up to date with our DMP payments. However, my SMP payment is on 24th March and I am unable to return to work within the foreseeable future. Therefore, after much research and discussion, we both plan on going bankrupt as soon as I have received this last payment from my employer on 24th March. We obviously need to save £1410 for our bankruptcy fees. I’ve spoken to Stepchange about closing/stopping our DMP with them and using our monthly payments towards our bankruptcy fees. They can’t really give me much advice as they said it’s up to us whether we close the account or not. We’ve got a payment of £369 due to Stepchange on 1st Feb and another £369 due on 1st Mar. Would you recommend that we stop our DMP and use this to save for our fees? My only concern is that we’ll get bombarded with phone calls and/or letters from our creditors demanding payment and I used to get extremely anxious and stressed about this before. I don’t want to put myself through it for the next 8 weeks before we go bankrupt.
Sara (Debt Camel) says
Hi Charlene, StepChange will be able to talk about whether bankruptcy is a reasonable option for you. If it is, then stopping the DMP is a good way to help save up the bankruptcy fees. Yes you may get some calls and letters, but it sounds as though this will only be for a short period and you are clear about what you want to do, so there is no need to be too stressed by them.
derek says
I took over a business a year ago and all was good but then went very bad. ..I now owe 20k and have no money for shop rent. ..or home rent. ..do not know what to do
Sara (Debt Camel) says
Hi Derek,
your top priority is the rent on your home, your other debts can wait until this is sorted. You may be eligible for Housing Benefit – I suggest you go to your local Citizens Advice office and ask them about this and what other benefits you may be entitled to.
Whether you are personally liable for the shop rent will depend on whether you had a limited company? If you aren’t absolutley sure about this, it would be a good idea to talk to Business Debtline, see https://www.businessdebtline.org/EW/Pages/default.aspx.
Matthew Cheetham says
How to find the money to pay for a bankruptcy is one of life’s conundrums. By definition, the debtor doesn’t have any material assets to sell to raise money. The options include a gift from a friend which is unlikely to be repaid, in the near future. I use the term “gift” because of the uncertainty surrounding repayment. The alternative is to charge the bankruptcy to a credit card, if the debtor still has one with any credit limit left on it. That is defrauding the creditor if there is no intention to repay, so that is not recommended either.
The government has created an instrument (bankruptcy) that can be the appropriate advice but then charges a fee for it. There is a cost in processing a bankruptcy so someone has to pay.
Sara (Debt Camel) says
HI Matthew, yes it is a silly catch 22, if you can afford the bankruptcy fees you aren’t broke! My answer to the “someone has to pay” is that the someone in this case is the tax payer. This isn’t huge amounts of money – under 16,000 people went bankrupt in 2015 – so reducing the bankruptcy fee to the £90 that is charged for DROs would cost less than £10m – that is the price a civilised society should be prepared to pay.
Matthew Cheetham says
It’s up there with “why do Kamikaze pilots wear helmets” and other questions that keep me awake at night!
I think your suggestion of a fee of around £90 is the most pragmatic solution.
We offer, for which we charge a fee, to complete all of the bankruptcy forms (its a detailed document) followed up by 12 months free advice from an IP. Given the circumstances, we have had internal TCF debates about whether we should charge any fee. We came to the conclusion that the fee should approximate the costs of delivering the service. We provide a lot of free bankruptcy advice for which we receive no fee. It’s only if the debtor wants their hand holding all the way through the process and for the following 12 months where we charge a fee.
I only mention that in the interests of transparency as I didn’t want to be accused of hypocrisy!
A says
I have 35k of debt. My DMP firm says I should move to an IVA but I am wondering if I should go bankrupt instead. I got into debt years ago before meeting my husband. He knows about my debts but I am reluctant to drag him into an IVA where his income would be counted as they were my fault.
I have a job, am renting and have a new family as my husband’s children live with us half the time.
I think the amount they are saying for an IVA payment (£500) would cripple us. I do not want to affect my family’s lives by my past issues. We do not live extravagant lives by any means and I still want us to be able to provide for them at Christmas, birthdays and holiday times.
What are the limits on’normal’ expenditure for a family? How can I prove that we can, on average over a year, only afford what I have been paying?
Sara (Debt Camel) says
With no assets to protect, you should be considering bankruptcy as a better option than an IVA – it’s over quicker and the monthly repayments my well be lower. See this comparison https://debtcamel.co.uk/hard-choices/iva-vs-bankrutcy/.
£500 a month would be a very high monthly payment in bankruptcy. I suggest you phone National Debtline 0808 808 4000 and they can talk you through the pros and cons of bankruptcy and look at your income & expenditure.
Harri M says
Hi I’m only 21 and went through a really rough time at uni i got very depressed not being with my family and got myself in a lot of debt getting the money to come back home. I owe around 7500 pound to different companies am just wondering what the best option is for me as i really cannot afford to pay to go bankrupt
Any help at all my outgoing each month are high then my in-comings
Sara (Debt Camel) says
Hi Harri, have you looked at a Debt Relief Order? See https://debtcamel.co.uk/debt-options/dro/. A good place to get advice about this would be your local Citizens Advice or by calling National Debtline on 0808 808 4000.
Gary says
Hi
I have over £40,000 worth of debt,the biggest was short fall in mortgage when had to hand keys back!since then my wife and I have divorced and she has went bankrupt,I used to be on a debt management plan but was advised to go bankrupt a few years ago,I have never had the money to sort,I have no property as have been staying in hotels due to working away from home self employed only have a little van,I am now working near home at the moment staying with friends and family,where do I stand going bankrupt when have no fixed address etc
Many thanks
Sara (Debt Camel) says
You don’t have to have lived at an address for a long while. You going bankrupt won’t affect the credit record of anyone else at that address. You must have some address for your bank statements, van insurance and DVLC?
The new online bankruptcy form (https://debtcamel.co.uk/complete-bankruptcy-application/) asks where you have lived for the last 3 years. I suggest you talk to Business Debtline (https://www.businessdebtline.org/EW/Pages/default.aspx) about this and your business and whether it will be affected by bankruptcy.
Hina says
Hi,
I definitely, think bankruptcy is the only way forward for me. I have over 30k debt after my divorce. Currently I’m with Stepchange who have put me on a Token Payment Plan. I had family help me in the past also, who I returned there money back to them, in total 5k. Is it true if I go bankrupt, they can go after them, even though they have given me most of the money back to help me survive with rent, bills etc? Also isn’t it true, that if you cant pay to go bankrupt, you don’t have to pay bankruptcy fee, if you can prove you have less money coming in then going out?
Thanks in advance
Sara (Debt Camel) says
If you can’t afford the rent and bills, have you looked at whether you are getting all the benefits that you are entitled to? I think it might be useful for you to go to your local Citizens Advice and ask about this.
Citizens Advice will also be able to talk to you about bankruptcy, the problem of the repayments to you family (this may depend on the details such how long ago the repayments were) and whether you could get help with the fees from any charities. Because it’s not true that you don’t have to pay the bankruptcy fees if you have no spare income each month.
Jo says
If you pay in instalments does this hold up the bankruptcy process until they have the whole fee? (I have been working myself into the ground doing overtime to pay it) Also I have had advice from CAB but was not able to get an appointment any time soon to do application, I have completed this myself, is this acceptable? How long does process normal take.
Sara (Debt Camel) says
The online bankruptcy application cannot be submitted until the whole fee has been paid.
It is good you had some advice on your options from CAB but you can do the application yourself – as you have probably realised it is long but pretty straightforward. More about the process here https://debtcamel.co.uk/complete-bankruptcy-application/.
Once you submit the application, most are approved in 1 or 2 working days. You may find this https://debtcamel.co.uk/bankruptcy-time-line/ useful as it covers what happens when during bankruptcy.
joanne says
Another question, am I better opening a basic account before I submit my bankruptcy?
Sara (Debt Camel) says
See this article which covers your bank account options: https://debtcamel.co.uk/bank-accounts-after-bankruptcy/
jill says
hi. what happens to your fee if your turned down for bankrupty, do you get it back…
Sara (Debt Camel) says
If your bankruptcy application is rejected, you will receive a refund of £550 – that is the £680 fees less the application costs of £130.
Are you worried about being turned down? Have you read https://debtcamel.co.uk/can-i-go-bankrupt/ ?
Alaco says
Hi there – in October 2012 I had to sell my home in Ireland (paid 415k euro – sold it for 215k losing all my equity). There was a shortfall and in order for the bank to allow me to sell I had to sign a form saying I was wholly responsible for the outstanding debt. I had no choice. I tried to negotiate with them, on the basis that I would move back to the UK and go bankrupt if necessary but at that stage in Ireland there was no debt forgiveness. Having heard absolutely nothing from them in the intervening 4 years (I left no forwarding address but they had my email and phone details), I had assumed the debt may have been written down. I have just received a letter telling me that I owe them 46,509.44 euro and they have appointed debt collectors. I live in the UK now, have no assets (rent a house from my sister at a peppercorn rate), get around on a bicycle as I can’t afford a car and scrape a living with some freelance work, I sell my art and do casual jobs. I make less than £10k per year.
Should I file for bankruptcy now or wait until approached by the debt collectors (I don’t want a bailiff situation at my home)!
Sara (Debt Camel) says
I can’t say anything useful about your Irish mortgage shortfall. I suggest you talk to StepChange https://www.stepchange.org/ because they have an Irish branch and will be able to get information from them if it is relevant, they can also give general good advice about bankruptcy in England.
David says
Hi there, hope you can help. I have got myself into a right mess financialy around £23,000. I’m on ESA £73 per week for depression, I am waiting for my assessment at 13 weeks. It’s now 10 months past. If I get my esa upped by £25 a week what will happen to My Social Security Disability Back Pay? I’m paying up by installments just now to go bankrupt. Thanks
Sara (Debt Camel) says
Hi David,
I’m not sure if you are worried about getting the money before you go bankrupt or after.
If you get it before, then using some of the money for your bankruptcy fees is a very good use of it! Then you can spend the rest on any essentials you need before going bankrupt. See https://debtcamel.co.uk/spending-money-before-bankrupt/.
If you get it after you go bankrupt you may be worried the OR will take it. As you are on ESA you can’t be working so you won’t be paying an IPA. (An IPA is a monthly payment a few – about 1 in 8 – people have to make for 3 years if they are bankrupt.) if you are not paying an IPA the OR won’t be interested in your back dates benefits. So this won’t be a problem.
David says
Hi thanks for replying. I now have date for assessment & it looks Like i could be getting my backdated esa in the 12 month period of bankruptcy. About three or four months into it before getting discharged. Will this change anything to do with the money. Thanks again
Sara (Debt Camel) says
No. you should be OK. Any problems, go to your local Citizens Advice and ask for help – but I am not expecting that you will have any.
steve p says
Hi.I am currently in a lot of debt and just today i received 14 letters from one debt collection agency totaling just under 7000 pounds.I got into the mess because of gambling i have mental health issues and i take a lot of medication just to try and get through each day.
Last year i contacted step change and after a long telephone conversation they told me that bankruptcy was the best option for me i currently receive ESA and DLA but half of the esa is my wifes so i havnt done anything yet as i am concerned that if i went bankrupt the benefits my wife receives in her name esa,child benefit and child tax credits would be taken into consideration as an income as i feel it could cause hardship for us if i did go bankrupt.
I told my bank i was thinking of going bankrupt last year after speaking to step change and to be honest barclays were great they said we will change your bank account to the most basic but still have a debit card and now i dont even get charged if a direct debit fails and whats more they told me that my bank account would not be affected if i go bankrupt as i get benefits paid into it so thats one thing i was pleased about.
I have no assets at all my wife has a car which i am named driver on insurance but logbook in her name would they take car if i go bankrupt its worth about 1500 but is needed for kids school runs and shopping as we live in a small village and need to travel to get weekly shops in.
any advice would be greatly appreciated as i know bankruptcy is right thing but i am scared of what will happen to my wife and kids finances and belongings.every asset i had i always sold to gamble with i know i am a screwup but i am trying to make amends and get my life sorted now my debts stand at around 24000 pounds all because of my gambling.
Thanks for reading
Sara (Debt Camel) says
If your only income is benefits – ESA & DLA – you won’t have to make any monthly payments in bankruptcy. Any benefits and income your wife gets won’t be relevant.
If your wife bought the car it is hers, not yours and it is safe. StepChange can talk things through in detail with you.
With debts that large and no income, a fresh start is probably a good idea.
Diana says
Hello
Are child maintenance payments taken into account when the OR calculates income in bankruptcy, the payment I receive is due for annual review in December and I am certain that he will have found some way to manage to decrease the payment (my son is 16 and in full time education, ex has only paid maintenance for him since January)
Thanks
Sara (Debt Camel) says
Yes they are counted. But if they fall, any IPA is reduced accordingly.
Jen N says
Hi Sara,
I have a question after having read your excellent article and this thread. I’ve been advised by StepChange to go bankrupt. I’m currently researching what to do about this as it’s obviously something with big implications.
I noticed one commenter asking whether she had to provide evidence of how she spent her PPI refund she received before declaring bankruptcy. I received around £2.5k in PPI refunds before (I think) my DMP started in 2014. I used the majority to pay back family to whom I owed money, the rest probably went on rent and everyday bills. Would this stand against me in the Official Receiver’s eyes? It was such a blessing at the time but now I’m anxious that I can’t prove how it was used.
Thanks
Sara (Debt Camel) says
Repaying loans from framily and friends and not paying your other debts is called “preference”. In general it’s not a good idea… but this was a long while ago. If it had happened last year I would expect the OR to look into it. With it being 3+ years ago, I doubt the OR will have an issue with it.
El J says
Not sure if there is any advice for this but I’m trying to go bankrupt due to a huge change in personal circumstances at home. I can’t afford the fee in one payment so am applying to pay the government fee in instalments.
I just wanted to know if this is enough to keep the bailiffs away whilst I’m paying the fee? Will they accept this as part of the bankruptcy process? It could take me 6-12 months to pay the fee and I couldn’t bear the thought of debtors knocking on the door.
Sara (Debt Camel) says
What sort of debts do you have? Do you have any CCJs or council tax arrears? Are you currently making any payments to these debts?
El J says
I have credit card, bank loans, council tax arrears all amounting to 28000. I have a failed IVA because I couldn’t pay it. Currently making no payments to debtors.
I’ve tried ppi but it came back unsuccessful. Started the online government application but was worried about what todo during the process of paying the fee. I spoken to one of the collection agencies who have put my account on hold for 30 days but not sure if it’s possible for them to do this during the time I’m paying the fee.
Sara (Debt Camel) says
“I’ve tried ppi but it came back unsuccessful.” is this because you didn’t have any PPI or because claims were rejected? If they were rejected, it’s well worth trying again as there is a new rule, see https://debtcamel.co.uk/ppi-deadline-august-2019-plevin/.
It is worth going to your local Citizens Advice and asking for help to make a grant application to get money for the fees.
Of the debts you mention, it would take a very long while before you could see bailiffs for credit card and loan debts. First the creditor who have to go to court for a CCJ – if you defend the case this can take many months. Then you can apply to make payments of just £5 a month – if you make the payments bailiffs aren’t possible.
Council tax arrears are probably the hardest ones to deal with – you could ask your local CAB if they could help you apply for a Section 13A write off. Or the simplest answer is just to ignore council tax bailiffs – they have no right to enter your property and if you refuse entry after a few weeks they will just return the debt to the council as uncollectable.
Kelly says
Has anyone tried the below to help with the Bankruptcy fees?
Help from charities
Many utility companies run trust funds that help customers with utility debts and other financial problems, including paying bankruptcy fees. The following is a partial list: British Gas, EDF Energy, Thames Water, NPower, United Utilities.
Kate says
I am a discharged bankrupt. I was discharged in March 2016. Unfortunately my partner and I need to go bankrupt individually. Which means this is twice for me. This is for various reasons Inc continued ivf treatment plus a dramatic change in income due to a loss of a job to a new job which is lower paid… And mental health issues. My partner has never been bankrupt before. My question is can I go bankrupt twice and can this be checked for me. I am deeply concerned.
Kate
Sara (Debt Camel) says
Yes you can go bankrupt again. But two questions.
1. who are the lenders that have given you a large amount of credit in the two years since you were discharged? If you or your partner have problems getting the bankruptcy fees, making affordability complaints to the lenders could be one way to try to get some money for the fees.
2. Do you owe less than £30,000 (EDIT this is the current limit, it went up from £20,000 in summer 2021)? If you do, you may be eligible for a Debt Relief Order (DRO) which is an alternative to bankruptcy with much lower fees. Read https://debtcamel.co.uk/debt-options/dro/ and talk to National Debtline 0808 808 4000 https://www.nationaldebtline.org/ about this,
Kate says
Hi Sara. Jointly we owe over 20000 but separately we each owe less than 20000. What complicates things is my partner has a car on finance with 3 years to run.
Sara (Debt Camel) says
You two don’t have to have the same debt solution, see https://debtcamel.co.uk/couple-different-debt-solutions/. You could have a DRO and getting rid of your debts may make it easier for your partner’s to be paid, perhaps with a debt management plan? Talk to National Debtline about the options for both of you.
Ayesha says
Hi, I have 20k+ debt and I am a lone parent receiving universal credit. I barely have enough to live on and I have applied to trusts and energy trust funds but no one seem to want to help. The only option I now have is not pay my rent for 2 month to gather the bankruptcy fees otherwise it’s just going to keep going.
Sara (Debt Camel) says
Are you making any payments to the debts at the moment?
Ayesha says
Hi, no I’m not, my outgoings are more than my income so there’s certain bills I can’t keep up with either.
Sara (Debt Camel) says
Is council tax one of the problems to keep up with? Do you have any council tax arrears for previous years, if so how much do they add up to?
(This may seem like an irrelevant question but bare with me.)
Sara (Debt Camel) says
Do you have any high cost credit debts eg payday loans?
Ayesha says
I have had a reduced amount due to my universal credit since October 2017 but I have been a college student since September so this year is not affected. I have around £1000 debt with them, most of my debt are from 40+ creditors.
Ayesha says
Yes, I have quite a few. I also have things such as provident loan debt and excessive overdraft from a previous bank account.
Sara (Debt Camel) says
OK then I suggest you read https://debtcamel.co.uk/payday-loan-refunds/ for the payday loans, https://debtcamel.co.uk/refund-doorstep-loans/ for the Provident debt and https://debtcamel.co.uk/refunds-catalogue-credit-card/ for the overdraft and start make affordability complaints.
I’m not suggesting these will pay off your debts or even get them down to a manageable level. But they could help in two ways:
– if you get a refund from any of them in cash, it could be used to help pay bankruptcy fees. Go after any payday lenders you used before where you don’t have a debt.
– if you get some of the balances written off, your total debt may get under £20,000 and you can go for a Debt Relief order which would only have a £90 fee.
Ayesha says
Can you get a refund from payday loan even if you didn’t pay them back? I’ll try to clear the smaller debts to get it under 20,000 and hopefully do a DRO. Thank you for your help
Sara (Debt Camel) says
If you had previous payday loans from that lender, the refund may be more than enough to wipe out the debt.
If only the last loan is decided to be unaffordable, then interest is removed from the balance, leaving only what you borrowed. If you are only just over 20k having that done for a few debts may be enough to get you safely under?
I suggest you go for affordability complaints to all the payday lenders and provident.
Have you asked all creditors to freeze interest? Otherwise you are working hard at trying to get the debts down and another one goes up :(
Ayesha says
No I’ve just been ignoring them in the hope a trust fund would help me but I feel like this while process is never ending and never going to get better.
Sara (Debt Camel) says
OK, well now you need to do this ASAP.
Draw up a budget that will presumably show you have negative disposable income. This tool https://tools.nationaldebtline.org/yourbudget/ is good and will produce a report in a standard format creditors are used to that you can then send to every creditor with a letter or email saying that you have large debts, including a priority debt (council tax) and no money to make any payments. Ask them to freeze interest and not add any charges so your debt does not get worse. Say you will contact them again after 6 months, or sooner if your situation improves.
Then get going on the affordability complaints.
Also have a think if there could be any PPI you could reclaim.
Kate says
Please could you tell me what happens to car insurance, TV licence and car tax installments? I pay monthly for each of these, are they considered to be debts?
Sara (Debt Camel) says
Car insurance is credit. Are you asking if you can carry on paying this after you are bankrupt? That depends on whether running a car is an allowable expense for you – have you talked to a debt adviser about this?
There won’t be any problems with paying TV license by instalments or road tax.
Phil says
PLEASE HELP!!!!!!
I’m on the edge – I have been advised by the Business Debt Line to apply for Bankruptcy but I cant afford the fees. I have applied for grants etc. and got no where. I’m panicking. Any advice would help? How can I pay the fees if I can’t afford to live?
Sara (Debt Camel) says
It’s often a case of piecing together money from different places.
Are you currently paying anything to your debts? Are you paying council tax? Are you buying or renting? Could you have had PPI on any debts that you could reclaim? Could you have had unaffordable payday loans?
Emily says
Good evening!
I have millions of questions about the practicalities of bankruptcy, but would appreciate your help with a couple!
* Does the receiver only contact the companies that are your creditors when you file for bankruptcy or all of the accounst that you hold? For example, I owe Barclays over £23,000 but use my Monzo account daily, which I have no borrowing facility on. I would like to keep the Monzo account if I can for use during bankruptcy.
* Can the bankruptcy fees be paid from an overdraft facility of I have not saved enough by the time I have gone bankrupt.
* My son has a child’s account with Santander, which requires me to have an account with them. My account balance is £0 with no borrowing facility. Would my bankruptcy mean that the accounts would have to be closed? More importantly, would his savings disappear in to my bankruptcy as they are in trust with me as the main account holder?
Thank you in advance for your help.
Sara (Debt Camel) says
1) All your bank accounts will be informed. Why don’t you ask Monzo now if you will be able to keep the account after bankruptcy? It’s best to know the answer so you can plan for this.
2) read https://debtcamel.co.uk/pay-bankruptcy-fees/. There is nothing that will stop you doing this and you won’t be warned against it. But technically you shouldn’t borrow money when you are just about to go bankrupt.
Some people like to move the money in small amounts to another account and pay the fees from there. Or they use their overdraft for everyday food and bills so they have more in another account. I can’t say if these approaches are is less likely to be noticed.
3) your son’s account will not be touched. (Assuming you haven’t shifted thousands of pounds into there before you go bankrupt!) I can’t guess what Santander’s policy would be here. You can ask, or just sort it out afterwards if it proves a problem.
Roger says
Please can you offer some advice. I am just about to file for bankruptcy and have a car on HP. I have contacted the finance company to return the car, which is being collected next week. Should I file my bankruptcy form now or wait until I hear from the finance company. Confused as some say you should return the car before bankruptcy and others say after, help??
Sara (Debt Camel) says
It won’t make any difference – your debt to the finance company will be included in your bankruptcy if the car is repossessed before you go bankrupt or afterwards.
Can I check you have taken some debt advice? Bankruptcy may be your best option but it’s always worth 30 minutes of your time to confirm this with an expert. Call National Debtline on 0808 808 4000.
claire says
Hi, I owe around 20K and earn £1500 per month with house bills of £1100.
Roughly how much do you think I’ll have to pay towards my debts. Nowhere gives a % table, or idea of the amount of your original debt you’ll have to pay off, just that it will be 3 years.
Thanks,
Sara (Debt Camel) says
Hi Claire,
there isn’t any simple table for calculating monthly payments for an IPA. It doesn’t matter how large your debts are, what matters is what your income and expenses are. Do your “house bills” in there include your transport costs? food and clothes? are you single? with children?
George says
Hello there,
I am a bit confused for any real clarity or advice for my unusual situation.
I was made redundant in UAE a few years ago and left with some debt. Now the UK debt wolfs acting on the banks behalf are requesting full payments or payment plans which I cant afford.
So bankruptcy is the only way to avoid the constant hounding for full payment. Problem is that, I don’t have any tangible assets as I have been unemployed and had health issues since my return to UK.
I also don’t have any debt in UK the only debt was in UAE. Any idea how the case would be reviewed as its only foreign debt.
Thanks
George
Sara (Debt Camel) says
I think the first question is whether the debt is unenforceable in England? And second whether the debt collector would bother to do anything if you have sent them proof that you are unemployed.
It seems extreme to rush into bankruptcy if you have no British debt. Would it not be better to just send them standard replies saying you have no money and you will contact them if their situation changes?
I suggest you talk to National Debtline on 0808 808 4000.
Rebecca says
Hi, I was a sole trader and my business has ceased trading. It ends up substantial amount of business debts(including business rates), however I only have a very small amount of personal debts. I am considering IVA or bankruptcy. Have been phoning around for debt advice, but going nowhere. I have been unemployed since 10/2018 and becomes sole carer for my ASD child. My partner works, and we are on tax credits, DLA rejected. I have no assets, no valuable and I don’t have control of household finance. He pays all bills(all in his name), rent and council tax. He only gives money for me to buy grocery. If I go for IVA, I need to do part time which fit school hours, also it will drag him into my trouble. Also he doesn’t want to pay my debts. Just like other people here, I also don’t have money to pay for bankruptcy fees. We are not married, will it better off for one of us to move out before trying to go on IVA or bankruptcy? Business rates arrears and Jacobs never give up harassing for money. I have sent letters to councils and Jacobs already and hoping they will take small amount instalments for now. Of course, they never listen.
Everybody just said never open the door but they threatened to take the cars on driveway which belongs to my partner.
What else I can do? I have no relatives or friends willing to help. Who will lend money to somebody who is already in heavy debts and going to make bankrupt? Do I have any way out?
Carrie says
I’ve filled my application in but I’m having to pay the fees bit by bit so may take a while I’ve got bailiffs chasing me (old council tax) and this yrs council tax building up I’m actually on maternity leave and scared stiff to leave my home i have told them I’m applying but they said they can still peruse till my application is paid for my life is hell… anything i can do can’t get a loan no one to help me pay fee. Thank you
Sara (Debt Camel) says
I hope some of the suggestion in the article above may help.
re bailiffs – at the moment there are no bailiff visits because of the lockdown. Before they restart, you will have a letter giving you 30 days notice, so in the short term you don’t need to be worried.
Also. for later, bailiffs for council tax have no right to force entry to your house unless you have let them in before. Do not answer the door to them. If you have a car, make sure it is in a locked garage or parked a long way away from your house. See https://debtcamel.co.uk/bailiffs-dont-open-door/.
Sara (Debt Camel) says
Also can I just check you have had some advice on going bankrupt? It may well be the best options for you , but it is always worth getting a debt adviser to look at your situation and they may be able to explain some practicalities as well.
I suggest you phone National Debtline on 0808 808 4000.
Kevin says
I’m just wondering if there is any Grant’s for men to go bankrupt as I’m going though cap with my debts. Please give me the advice that I need
Sara (Debt Camel) says
Have you looked at all the options in the article above? Are you making any payments to your debts at the moment?