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Bankruptcy Fees

If your debts are so serious that you face the prospect of going bankrupt, you need to be aware that there are charges for declaring yourself bankrupt.

These bankruptcy fees consist of a £140 court fee and a £310 deposit to help meet the costs of the Official Receiver. So this amounts to total costs of £450 which you are legally bound to meet yourself.

If you are on means-tested benefits, then you will be exempt only from the court costs of £140.

Call the debt solutions helpline on: 0845 519 6093

This is another reason why it’s so important that you get debt help and consider all other possible debt solutions such as an IVA (Individual Voluntary Arrangement) first.

Declaring Bankruptcy

If you have no option but to declare yourself bankrupt, then you will need to submit a petition to a court.

Equally, your creditors can do this if they can show that you owe them £750 or more in unsecured debts.

Alternatives To Bankruptcy

An IVA or Individual Voluntary Arrangement – is a formal and legally binding agreement that is created and managed by an Insolvency Practitioner. It outlines the amount you can afford to pay back to the people you owe money to over a period of time. If the IVA is accepted by the people you owe money to, you’ll be looking at paying a much smaller total amount of debt off over what is normally 60 months.

Your home and any assets will be protected in the IVA, however if you do have more equity in your property than you owe in unsecured debt, them an IVA would not be an option.

Debt Management Plans are an informal arrangement between you and your creditors were you agree to make a lower monthly payment until the debt is paid in full. Unlike an IVA there is no set period of time.

Consolidation loan is a larger loan, normally secured against a property that you use to pay off all your smaller loans. This will give you one lower monthly payment with lower interest rates.

More About Bankruptcy

Bankruptcy is a way of enabling those in debt to wipe the slate clean and start over again. It is not without serious consequences and as the most serious and final of all the debt solutions on offer for bankruptcy, should only be chosen once you have had debt advice you trust.

Since the 1 April 2004, the Bankruptcy laws in England have changed considerably to enable more people to rid themselves of the burden of their debt. For example, previously, bankruptcy would last 2 to 3 years. Now most bankruptcies get discharged in only 12 months. So why are there not more bankruptcies?

Part of becoming bankrupt involves telling your bank (and landlord if applicable) of your position and an advertisement being placed in your local and national newspapers. Bankruptcy is the least discreet of all the available debt solutions.

In addition to the public nature of bankruptcy, all bank accounts, credit cards, and store cards are cancelled and leased goods returned. And for many, the worst disadvantage of bankruptcy is that your home may be taken from you.

Can debt solutions help me get out of debt?

YES we can. Everyone’s personal situation is different and each debt solution is different so we need to work out which will best suit your financial needs.

We will complete a FREE 20 minute fact find with you to work out what your earning and spending and this will let us know how much you can afford to pay to your creditors and also which debt solution is best for you to help you get out of debt. You are under no obligation but I am sure you will be 100% happy with what out debt advisors can do for you and we have the lowest debt managenent fees in the industy

We pride ourselves in our friendly, professional approach to finding the right debt solution for every one of our clients, which is honest, confidential and always the ‘best advice’ based on your individual circumstances.

If you would like to speak to one of our friendly, professional debt experts about any of our debt solutions you can either call our debt solutions helpline on: 0845 159 6093 or complete our online contact form and one of our debt advisors will call you back within the hour.