Hi, Does anyone know the rules about fees for bankruptcy and how they are paid? A relative has asked me to lend money to cover £350 fees each for her and her husband and says there are also costs of £150 each to pay on the day but these extra costs can be waived if you don't have the cash to pay?
If I lend £700 for the fees then would the court accept this needed to be repaid fairly soon - or would I just be added to the list of their creditors thanks!
If you decided to lend the £700 to your relatives then you would be treated as another creditor and would not receive the money before any of the other creditors.
Any money that your relatives would pay via the Income Payment Agreement (IPA) are distributed by the OR to the creditors on an equal basis. You would also need to make sure that you were on the SOA (Statement of Affairs) as a creditor with £700.
I don't know the circumstances of your relatives financial situation or their income but the chances of you getting the £700 back are very slim.
I pay into an IPA but my creditors will only get about 33% of the money back that I owe provided I keep the same level of income that I have now and that is without the OR taking their fees.
Hi many thanks for that link. The form says you can get automatic remission of the £150 court fee if on certain benefits. Otherwise, you need to list your income/outgoings and they decide based on your net income whether you are eligible for full or part remission of the fee. I had a sneaking suspicion that I wouldn't be top of the list to be repaid the £350 fee - but, having never known much about bankruptcy before, what on earth happens if you are bankrupt and virtually penniless - if someone doesn't agree to lend you the £350 then what happens? You can't declare bankruptcy and have to wait for a creditor to declare it or what?? Thanks again for your help
I declared BR as none of my creditors were going to declare it for me. They were going to send bailiffs in. I declared myself and took £360 ( the fee has gone up by £10 now ) to the court bankruptcy fee and a form with proof that I was on a relevant benefit. The court cost of £150 was waived so I did not have to hand it over. I am not sure but I think you have to take the BR fee with you and they like cash. Hope this helps.
bankruptcy fees
Posted - 17 July 2009 : 18:31:50
