You can pay your bankruptcy application by debit card or cash. If you are paying by card, you can do this in instalments.
The payment methods are all explained in the new online application. I’m going through it in detail here as you might like to understand how this will work but don’t yet want to start a bankruptcy application.
If you want to know more about the rest of the bankruptcy application, read How to complete the online bankru[ptcy application.
Start a bankruptcy application
The first step is to start a bankruptcy application.
If you and your partner are both going bankrupt, these are handled separately so you will each need to start a bankruptcy application.
You will then be emailed your bankruptcy application number and a link to sign into the bankruptcy application. On the first Application Overview page there is a green Make a Payment button, which takes you to this screen:
Paying online
To make a payment by credit, debit or prepaid card you enter the amount. You can pay by instalments, adding more money when you can afford it. The minimum payment allowed is £5.
Although it is possible to pay by credit card, the application informs you that “You shouldn’t use your own credit card to pay for bankruptcy“. The credit card company could potentially regard this as fraud – you took out money knowing you couldn’t repay it because you were going bankrupt.
As you can see from the above picture, you will be able to see how much you have paid and how much is left to pay.
Until you have paid the full fees you can’t submit your bankruptcy application.
How to pay your bankruptcy fees in cash
Paying in cash
If you want to pay in cash, it has to be the whole amount – £680 – you can’t make cash payments in instalments. To do this, you need to:
- select the ‘I can’t pay by card‘ link at the bottom of the page;
- you will then be given the payment details: the sort code and account number for the Insolvency Service account and your unique payment reference, which will begin with ADJ, see this screenshot;
- NB this payment reference is not the same as your bankruptcy application number;
- go to any branch of NatWest with the cash and these payment details. Ask for a receipt which shows the amount and the payment reference from the cashier as proof you have paid;
- cash payments will take two or three working days to show up in your bankruptcy application as being paid.
Someone else paying for you
Sometimes some or all of your bankruptcy fees will be paid by someone else, usually a relative or a charity that gives grants for bankruptcy fees.
If they want to pay in cash, you give the cash payment details that you would have used (see above) including your ADJ payment reference and they can use these in any branch of RBS. This has to be for the whole £680 amount, not for just part of the fees. And make sure they keep the proof of payment!
If they want to pay online, they can pay all or part of the fees. You need to:
- select the ‘Have someone else make a payment on my behalf’ link at the bottom of the page;
- you will be told your payment reference – it will begin with ADJ. This will always be the same for you, so if your mother wants to pay £100 a month into your account for the next 6 months you don’t need to get a new reference each time;
- you will also be given the internet address of the third party payment page – send this and your payment reference to the person who will be paying.
You can change your mind and get the money back!
At any point before you submit your application you can change your mind and get a full refund of all amounts you have paid in towards the fees.
Just select the ‘Discard application‘ link on the overview page. The refund can take up to three weeks to process. Any refunds will go back to the card the money was paid from, or to you if the payment was in cash.
This means that if you aren’t sure if you will go bankrupt ist can make sense to start saving up for the fees just in case.
After you have submitted the bankruptcy application, you can’t withdraw it and ask for a refund. If your bankruptcy application is rejected, which happens to less than 1% of applications, you will receive a refund of £550 – that is the £680 fees less the application costs of £130.
This article is kept updated.
A checklist for going bankrupt
Completing the online bankruptcy application
Bankruptcy timeline – what happens when
Nick Pearson says
Its a rum thing this paying fees by card (whether a credit card or direct debit with overdraft) – not that I’m overly concnered about the effect on credit card providers! The Insolvency Service are surely basically encouraging clients to play fast and loose with the Theft Act 1968. The Insolvency Service seem to have adopted the principle of “you may as well be hung for a sheep as a lamb” ie is, well whats another £655 on to your debts; Barclaycard, MBNA, Capital One etc etc won’t mind! My guess is they will mind and it may not be long before payment by credit card is withdrawn.
In the past, the OFT and now FCA have specifaclly forbidden DMP providers to take DMP set up fees via credit cards (they seem to ignore the payment by direct debit via an overdraft). DMP debts are typically repaid in full, unlike bankruptcy.
It is indeed a funny old world.
Jane Clack says
But let’s be pragmatic here – how on earth can people find the funds to do this? – and it is not as if credit card companies have not been charging interest in the first place. Are the credit card companies going to the wall for this? Yes, it is technically fraud and we should point this out but people would spend it anyway … getting out cash to do it? They have to have funds available on a card to do this – or an overdraft facility and how many people in this situation have either.
Borrowing from family members and then discreetly paying them back?
I would never encourage someone to do this due to the “fraudulent” aspect but think we have to be realistic.
This should be something for the Insolvency Service to monitor.
Kate Cook says
I think the comment on the page which covers help with bankruptcy fees – “if one of your cards or your overdraft isn’t maxed out, this could be used for some or all of the fees” – is a very unwise suggestion. I also suspect that credit card companies will start to object, and may ask the OR to penalise the bankrupt if they do this on an account which is then included in the bankruptcy. A Bankruptcy Restrictions Order may then follow, as the debtor will have incurred a debt that couldn’t be repaid, something the court may well consider to be reckless or dishonest behaviour.
Sara (Debt Camel) says
Hi Kate,
I thought long and hard about putting it in, as I am aware it goes against all previous practice. However I have been at a meeting where Liz Thomas, the Adjudicator, seemed entirely relaxed about this, and at another meeting where someone from an OR’s office said that a BRO if this was the only issue would be very unlikely but if there was a pattern of problems it could be considered as part of it.
In practice of course people have always been able to withdraw cash and use that for bankruptcy fees.
And for many people their cards are maxed out or already defaulted. I’m not sure how many people will actually be affected by this.
Sara (Debt Camel) says
Well the IS now seems to have changed its mind about credit cards – I have updated the article. It’s not really a coherent decision – anyone with a credit card that isn’t maxed out can take money out in cash and use that (as indeed they could in the old Court Petition days), or still use their overdraft.
Paul Drake says
So can I use credit card to pay bankruptcy fees or not…
Sara (Debt Camel) says
As the article above says, the system won’t stop you doing this.
This could be regarded as fraud by the card lender, in which case that debt may not be written off by your bankruptcy. (NB I have never actually heard of this happening, I mention it as a theoretical possibility.) But your bankruptcy application would still be accepted.
I suspect some people take a more indirect route, by using their credit card to pay for more everyday living expenses for a few months resulting in them having more cash in their bank account to pay the bankruptcy fees. In theory you shouldn’t do that either, but some people may feel it is less likely to be spotted.
Louise Brenchley says
Do I have to pay the full amount before putting in my bankruptcy application or can I pay it monthly, after I’ve applied? as I don’t have all this money
Sara (Debt Camel) says
You can’t put in the application until it is all paid. See https://debtcamel.co.uk/help-with-bankruptcy-fees/ for ideas that may help.
John clark says
If I pay by instalments, and I tell the people I owe money to that it will take say three months to get the £680 together, will they, Give me the time to gather the money or will they still harass me for the debt I owe.
Sara (Debt Camel) says
what sort of people do you owe money to?
Kelly says
I have completed my bankruptcy form just trying to come up with ways to pay the fee.
Anyway my question is, I’m waiting for the ombudsman to look at my Wonga interest and fees case, if I go bankrupt will any payment that may be made by Wonga to me have to be given straight to the person in charge of my bankruptcy to go towards my debt. I don’t owe Wonga any money by the way.
Sara (Debt Camel) says
Yes, if you have already gone bankrupt a refund will go to the official receiver. But now, getting a refund from Wonga could be a great way of paying the bankruptcy fees!
Kelly says
Thanks for the quick reply.
I’m one of those 6year cases so in for a long wait if I’m relying on that refund to pay the fees
M Kia says
Does anyone know what payment reference Worldpay uses when paying via http://www.gov.uk?
I don’t want any bankruptcy identifiers appearing on my bank statement, as I’m planning on paying by instalments until I reach the full £680.00
S says
Hi
If I paid for Bankrupty in 6 instalments, obviously my submission will not happen until it’s paid in full, do I simply advise all creditors I am seeking bankruptcy and advise them of the time frames ?
Any advise would be helpful on this
Sara (Debt Camel) says
This article looks at your situation: https://debtcamel.co.uk/tell-creditors-bankrupt/
Jan says
Hello Sara…I am really desperate…hope You can advise me.
Can I take out a Payday Loan to fund my Bankruptcy Fee?
In 2016, after being ‘dismissed by my Employer for my sick absence record’ ( had 2 bad accidents in their office..resulting me having a Prolapse Disc) I am now claiming Universal Credit & I am really struggling! Recently Royal Bank of Scotland contacted me via a Debt Collector…stating a 17 year old Loan is still outstanding…over £9,000 in Interest!! I had been advised by RBS “that the Interest had been written off”..unfortunately I did’nt receive written confirmation & now RBS are denying this. I’m 58, no children, live alone in a rented flat (rent is £450) after paying my rent & utilities bills etc…I have £30 for the month for food. I have noone to ask for help re the £680 Fee. I am in a terrible predicament & its getting worse… I have worked since leaving school at 18…now 58 years old & no chance of getting a job anytime soon. Thank you for having this wonderful website & your incredible advice. Kind regards.
Sara (Debt Camel) says
Sorry quite a few questions!
Do you have other debts as well as this RBS loan?
Is your Universal Credit being reduced because of repaying any debts?
This old RBS loan – when did you last talk to them about it?
You say it is with a debt collector, who is this and do you know if the debt collector has bought the loan or if they are collecting it on behalf of RBS?
Jan says
Hi Sara thanks so much for reply.
In April 2019 received mail from ROBINSON WAY DEBT COLLECTOR, requesting a repayment plan for the RBS Loan of £8,000. I setup a Complaint as I’d found a letter dated May 2011 from RBS to DEBT ADVICE re:- PPI…RBS had replied “they had lost/misfiled my Agreement Loan & according to Consumer Credit Act 1974 Under Section 77..”they cannot enforce repayments”. In July ’19 received RBS’s Response.. completely glossed over the fact losing my Loan Agreement! Loan is 17 yrs old.
2. Entered an IVA in 2009 the Company went into Administration.
3. Past year I’ve started to receive correspondence from various other debt collectors re Store Cards all 17 years old. I’ve only got this RBS Loan
just this outstanding interest of £8,000. In total owe £15,000.
4. I have’nt advised DWP re:-my outstanding debts.
5. I’ve advised Debt Collector’s my intention to declare Bankruptcy.
6. Therein lies my problem! I’m unable to save for the Fee. .don’t have an Overdraft or Credit Cards.
Could I use a Payday Loan? I would need a Guarantor. Going to ask my Sister.
Thanks Sara so very much.
Sara (Debt Camel) says
Let’s hang on a moment here.
Has RW bought this debt from RBS? or are they collecting it on behalf of RBS?
What were you sent in July 19 – the CCA agreement? or a letter ignoring it?
Sara (Debt Camel) says
You don’t need a guarantor for a payday loan. If you get a guarantor loan and then go bankrupt, your sister would be asked to repay the loan – it would be much simpler for her to give you the bankruptcy fee. But from what you have said so far, I think there is a good chance you won’t need to go bankrupt at all!
Jan says
Dear Sara
Thank you from the bottom of my heart for your time, trouble & advice. I’ve escalated my RBS Complaint to the Ombudsman for their comments. Thanks again so much. Jan
Jul says
Hi, has anything changed in the bankruptcy rules / process at the moment? Also reading a reply before where it says “This could be regarded as fraud by the card lender, in which case that debt may not be written off by your bankruptcy” so how likely is that to happen if paying the bankruptcy fee by credit card? Also reading that comment makes me worry as technically all the credit cards I’m in debt with could claim fraud as they could say I spent money recklessly? I’m confused as what is the point of filing bankruptcy if I might end up getting sued for fraud and the bankruptcy not covering any of my debts. Step change have advised me bankruptcy but didn’t mention this. Thanks
Sara (Debt Camel) says
“has anything changed in the bankruptcy rules / process at the moment?” sorry that question is so vague that’s it’s impossible to answer. Changed since when? What area are you concerned about?
“how likely is that to happen if paying the bankruptcy fee by credit card” there aren’t any statistics but I have never heard of it happening to anyone.
“that comment makes me worry as technically all the credit cards I’m in debt with could claim fraud as they could say I spent money recklessly?” you don’t need to worry about that! First of all “fraud” require you to have had an intent to defraud, not just been reckless. Read https://debtcamel.co.uk/bankrupt-after-borrowing/. This is not a problem that happens in practice which is why StepChange didn’t mention it.
Using a card to pay the fees is a lot closer to fraud because you KNOW you are just going to go bankrupt and won’t pay the money back. That is completely different from having lived on your credit cards for too long when you should have take action about your debts sooner.
Most people don’t even get accused of having been reckless though. Read the reasons why people get BROs from this list: https://www.insolvencydirect.bis.gov.uk/IESdatabase/viewbrobrusummary-new.asp.
Sara (Debt Camel) says
If StepChange have suggested you should go bankrupt, that is VERY likely to be the best option for you. They will have thought carefully about your situation and whether you have any other options.
Jul says
Ok thanks. Yes Step change adviced me Bankruptcy but they didn’t ask anything about how I got into debt. You say you never heard any one getting sued for fraud by paying their bankruptcy fees with a credit card they have debts on. I’m not sure if I should risk it and go ahead and pay with the credit card as I’ve tried the grant charities and couldn’t get help to pay the fee. In my debit card I have about £700 and it asks how much money I have in my bank account in the bankruptcy application should I put 700 even though if I pay the £680 with the debit card when they check I will only have £20 in my bank account. Should I put how much money I have before or after paying the bankruptcy fee? Wanted to pay with the credit card as that would be easier but I’m scared of the fact you mentioned it could be considered fraud. It’s the waiting time usually 3 days after sending the application to be made bankrupt? Thanks
Sara (Debt Camel) says
You should put the amount of money you will have in your account after paying the bankruptcy fee – as that will be the amount there actually will be when you submit the application.
2-3 days is typical.
Hannah says
If paying by instalments.. Do I tell my creditors I have applied for bankruptcy and will it keep them off my back or can they still keep on u till its all paid and cleared
Sara (Debt Camel) says
this article https://debtcamel.co.uk/tell-creditors-bankrupt/ looks at what to do.
Daniel says
Hi, just looking for any guidence or advice.
I’m in debt 19k, depressed and dependent on alcohol as of this. I don’t miss payments to my creditors and hold down a stable job. In a manic moment under the influence of alcohol I made myself bakkrupt. I took no finanancial advice before hand and now I’m at a lost end. I paid for my bankruptcy in drink and have no way out for making annulment as I don’t have the funds to make the application, and an iva is not available as I have a guarantor loan who won’t accept my iva offer. I’m shocked as their has been no opportunity to cancel my application I made. No one checked my application was made in sound mind and now I have to ride with it. Even if I applied for an annulment on the grounds I was not in a sound mind when I made the application – I will still have the fees on top for the official receiver, (which are 1000’s) I’m happy to continue to make my repayments if I cut back drastically on my spending but there is no option to do this according to my official receiver.
Any help? Not interested in any criticism I know I made a stupid mistake.
Sara (Debt Camel) says
Do you have any assets?
Daniel says
No, I don’t have any assets.
Sara (Debt Camel) says
Were you the guarantor for a loan or the borrower?
With no assets, an IVA is usually not better than bankruptcy. You have to make payments for 5 years, but for bankruptcy it is just 3. IVAs can fail (about 30% do!0 but bankruptcy doesn’t. They have the same bad effect on your credit rating.
Also with no assets you have made a not great decision if you could simply have repaid your debts but is it a disaster?. You now have a quicker route out of debt at a cost of a wrecked credit record for 6 years.
Are you getting any help with your alcohol problem?
I don’t know what you put on your bankruptcy application. Did the figures you put for the Income & Expenditure show that you could repay your debts easily? If they did, then you could talk to National Debtline on 0808 808 4000 to see if they can suggest anything.
Ben says
Hi Sara,
I have approx £53k of non-priority/unsecured debt at the time of writing, I say this as at present I’m not in my arranged £1.5k overdraft facility. I’ve done as much research I can & feel that bankruptcy is likely the best debt solution for me. I’ve been in contact with Stepchange & based on my answers the only options are IVA or Bankruptcy, my job shouldn’t be jeopardised by bankruptcy & I do not have any assets, hence my conclusion.At present i haven’t defaulted/missed any payments to either priority or non priory debts. My question is can I cancel the direct debits to all my non-priority debts and use this money to pay the bankruptcy fees or would this be considered fraudulent??
Sara (Debt Camel) says
If you have no assets to protect then an IVA has no advantages over bankruptcy and should be avoided as too often it fails. If you have To make payments in bankruptcy they are only for 3 years and they are completely flexible – if your energy bills go up £50 a month and yiur income hasn’t changed you ask for the bankruptcy IPA payments to be cut £50 a month.
Cancelling the DDs to non priority debts is the simplest way to save up the bankruptcy fees. It isn’t fraudulent. And if you do it to all your non priority debts it is treating 5hem all equally which is important.
How long will it take to save the fees.
Robin says
Hello
After reading your very informative site I believe my best option is bankruptcy (38k£). My worry is further consequences. The fact that it will be made public.
Will it come up when someone googles my name?
Sara (Debt Camel) says
That depends a bit what your name is.
But if bankruptcy is the best option for you, what else do you propose to do with your debts?