Thinking about going bankrupt? It’ll cost you more than you think. The cost of going bankrupt rose at the beginning of this month £75 to £525. Add on the court fees and you’ll be staring down the barrel of a total upfront cost of £700.
The £525 is a deposit needed to manage a bankruptcy. This allows the individual in question to lose their debt and start afresh. Sounds good, though be aware that this way you’ll lose all your assets to pay off creditors – including your house if you have one.
Jon Elwes, from the Money Advice Trust, said: ‘This increase in the cost of going bankrupt is likely to swell the numbers of people falling through the net of the current insolvency regime. Our advisers at National Debtline speak to people everyday for whom bankruptcy would be the best solution to their debt problem, but for the fact they cannot afford the associated fees.’