Bankruptcy petition fees from the Government backed Insolvency Service will increase from £360 to £450 from 6th April 2010. This basic fee increase equates to 25 per cent and there will also be an additional court fee of £150. The new total fee is £600, just £60 short of double the current fee.
The reason given by the Insolvencey service was because of the economic downturn which means that money recovered from debtors is not enough to cover the costs of going bankrupt. The Insolvency Service said that the fall in property prices was one of the main contributing factors.
An Insolvency Service spokesperson said: ‘The economic downturn has reduced asset values especially property which means a greater proportion of cases dont generate enough money to cover the fee.’
‘This has meant that within the overall fee structure, we have had to ensure that more cash is realised earlier in the process. This has led to increases for some but will ensure that the cost of the regime is paid partly by the debtor and partly by creditors.’
‘Over the last year, the average unsecured debt in debtor petition bankruptcies has been around £33,000. Even with the new higher petition deposit cost, it is not unreasonable to expect those getting the benefit of writing off this debt to pay a proportion of the cost.’
Craig Gedey Marketing Manager for Debt Advisory Line said: ‘choosing bankruptcy is a huge decision and people must be sure it is the right choice for their curcumstances.’
‘Choosing a DEMSA approved debt management company like Debt Advisory Line means that you can be sure the company will be providing advice that is best for your circumstances.’
‘DEMSA stands for the ‘Debt Managers Standards Association’ and it is the only organisation within the debt management industry to have code approval from the Office of Fair Trading.’
Visit www.debtadvisoryline.co.uk today for more details or call our help line on 0800 542 6872.