Options for paying the Bankruptcy Application Fee

James Falla

• 03 Feb 2022

One of the things that might put you off bankruptcy is the application fee. However there are various things you can consider to help you get the money together.

Included in this article:

• Can the fee be paid in instalments?
• Can you borrow the money you need?
• Other ways you could get the fee together
• What if your application is rejected?

Rather speak to a person? Call 0800 044 3194 or click here to complete the form below and we’ll call you

The information given on this page relates to England or Wales. The application fee and methods of payment are different in Northern Ireland and Scotland.

Can the Bankruptcy Application Fee be paid in Instalments?

If you want to go bankrupt you will have to pay a fee. Everyone has to pay this in full. There is no option for a reduction even if you are on a low income or in receipt of certain benefits.

You may have read that you can pay in instalments. This is correct. Once you have registered with the government’s application system you can make payments towards the total in increments of as little as £5.

However it is not possible to submit your application and get the protection from your creditors that bankruptcy provides until the fee is paid in full.

Your bankruptcy application cannot be submitted to the Adjudicator until the fee is paid in full.

Can you borrow to pay your Bankruptcy Fee?

Borrowing more money when you are considering bankruptcy may seem like the wrong thing to do. However this can be a simple solution to the problem of how to pay the application fee.

You might be able to borrow from family or friends. You will be able to pay them back once your bankruptcy has ended. However if you do not know anyone who can help you could also use an available credit card or overdraft facility.

Borrowing money to pay for your bankruptcy fee is not considered fraudulent and will not mean your application is viewed in a different light. The Official Receiver will take the view that it is reasonable to borrow a little more to stop your overall debt problem getting any worse.

Borrowing to pay for your bankruptcy application fee is not ideal. However it will not negatively affect the outcome of your application.

Other ways you could get your Bankruptcy Application Fee

It may may decide to save the money you need to pay your application fee. Once of the things that will help you do this is to stop making further payments towards the unsecured debts that will be included.

Once you stop paying these creditors are likely to start harassing you for money. However tell them you have taken decided to go bankrupt. Ask them to put your account on hold to give you time to save for the fee. Most will be helpful in this regard.

If your car is worth more than £1000 you could consider selling it. You can use the money from the sale to buy a cheaper car and pay for your bankruptcy fee.

Some charities and utility companies have funds available to help people to pay for bankruptcy. It is possible that they will simply give you the money you need if you apply:

• EFD Energy Trust (not currently taking applications)
• United Utilities Trust Fund
• British Gas Trust Fund
• The Royal British Legion
• Turn2us – National Hardship Charity
  

What happens to your Fee if your Application is Rejected?

Once you have paid your fee and submitted your application it will be reviewed by the Adjudicator. As long as you qualify for bankruptcy then it is almost certain that it will be accepted.

However if for any reason it is rejected you will get back the majority of the fee you have paid. This is because fee is actually made up of two elements. One is called the application fee and the other the bankruptcy deposit.

After your application has failed you will be returned the bankruptcy deposit element. However the smaller element (the application fee) will be retained by the government to cover the Adjudicator’s costs.