Bankruptcy
Costs:
The costs of bankruptcy depend entirely on the amount of disposable income you have and the assets you have. Disposable income in this context means the amount of income you have left over after your essential expenditure. The official receiver will sit down and have a face to face meeting with you to understand your individual circumstances. In relation to your income if surplus income exists it is likely that they will request that you continue to make payments to your creditors for three more years out of the disposable income you have. Beyond your income any assets with real value will also have to be handed over and realised for your creditors.
Note: You will be allowed to keep personal possessions and a cheap car.
The second level of costs is the actual payments you need to make to the court. In practice you will need to raise approximately £400 to declare yourself bankrupt. This is split with £120 going to the court, £250 going to the Official receiver and there may also be a requirement to make a couple of small additional payments of £7 for other testimonies.
The final cost involved is not a financial one but one of time. You will have to first fill out the forms, you will then have to go to the court to register the forms. Thereafter there needs to be a court hearing where you will need to attend. Thereafter you will need to spend time with the Official Receiver in the realization of your assets.
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Bankruptcy: Main
Bankruptcy: Criteria
Bankruptcy: Considerations
Bankruptcy: Costs
Bankruptcy: Merits