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What are the costs of bankruptcy?
The following costs must be paid in addition to the amounts owed to creditors from the assets available in the bankruptcy estate:
| Description | Approximate Cost |
| Official Receiver's fee | £1,715 |
| Interest on debts | At least 8% per annum |
| Petitioning creditor's costs | Ususally range from £950 to £3,500 |
| Solicitor's costs where Trustee has employed their services | This can range from £nil to several thousand pounds |
| Trustee's remuneration | Where an independent trustee is appointed he will usually seek approval from creditors for his fees to be paid on a time spent basis. With hourly charge out rates ranging from £80 to £500 per hour, such costs can accumulate very quickly. It's not unusual for costs to recah £7,500 plus VAT in a relatively short period of time. These fees frequently spiral out of control when there are delays. |
| Secretary of State fees | Charged at 17% on realisations |
Someone with debts of only £10,000 could easily find themselves in the unfortunate position of having to sell assets to raise around £28,000 or more to repay the debts, costs and expenses of the bankruptcy in full. These costs can be substantially reduced by getting the bankruptcy order cancelled / annulled.
If you have no assets, these costs need not be paid.