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Ask Payplan a question… Can I go bankrupt for free?

For those seeking help with their debts bankruptcy is often seen as the quick and easy solution. Some people also believe it is free. However, this is not the case. Let us explain…

In order to go bankrupt you must pay two sets of fees; the first of £175 to the court and the second of £525 to the Official Receiver, totaling £700. The first fee of £175 for the court may be waived for debtors who are on low income or benefits. However, the second fee of £525 must be paid by everyone who wishes to go bankrupt.

Once a person has petitioned for bankruptcy, the assigned Official Receiver will assess their finances; including their income, expenditure, assets and debts. In doing this they will determine whether the person could pay a contribution towards their debts over what may be a three year period. This is called an Income Payment Order.

For more information about bankruptcy click here.

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