fbpx

What are the Insolvency Costs and Court Fees?

There are certain fees and costs in processing court and insolvency. In this guide, you’ll be aware of what are these fees and when they are charged. If you’re considering insolvency solution, you are likely to pay charges for you to pursue your application. Depending on where you live in the UK, the following charges or fees may apply

England and Wales: Insolvency Costs and Court Fees

If you live in England and Wales, you will be facing the following fees for insolvency

Debt Relief Order or DRO

  • costs £90
  • paid to the Insolvency Service directly
  • costs can be spread through monthly instalments
  • reductions are not available

IVA or Individual Voluntary Arrangement

  • does not require any upfront fees
  • percentage of the monthly payment goes towards your IVA costs

Bankruptcy

  • costs £680 (£550 bankruptcy deposit and a £130 application fee)
  • payment can be done online
  • costs can be spread through instalments but no reduction is available

In terms of County Court processes, below are the most common fees. If you’re dealing with debt issues, you may apply for some of these.:

If you have relatively low income or your sources of income are coming from your benefits, you can try waiving court fees or reducing it once you’re eligible.

In fact, you can seek help for court fee charges online. There’s no need to present proof of income when you apply. However, the court can send you a request in writing to provide pieces of evidence.

Northern Ireland: Insolvency costs and court fees 

Debt Relief Order or DRO

  • costs £90
  • paid to the Insolvency Service directly
  • costs can be spread through monthly instalments
  • reductions are not available

IVA or Individual Voluntary Arrangement

  • does not require any upfront fees
  • percentage of the monthly payment goes towards your IVA costs

Bankruptcy

  • costs £647 (£525 bankruptcy deposit, £127 application fee, and £7 solicitor’s fee)
  • court fee can be waived if determined to have a low income by filling the Form E31
  • all the other with sufficient income will have to pay the costs

If you wish to apply in waiving the costs, you can complete the Form E31. This can be possible if you have a low income or relying on your benefits as your income source. You can also check the Courts and Tribunals Service website to find out more about the details of your bankruptcy.

Besides, you might also need to suffice proof of your income to be eligible in waiving the court fees. You can refer to the guidance notes or clarify your options with the court for further information.

Scotland: Insolvency Costs and Court Fees

Minimal Asset Process or MAP Bankruptcy

  • costs £50 until the end of September 2020.
  • costs may be reduced to £0 if you’re getting certain benefits, though it may not be yours alone

Protected Trust Deed

  • no upfront costs or fees
  • percentage of your monthly payments goes to the protected trust deed costs

Scottish Bankruptcy or Sequestration

  • costs £150 at the end of September 2020
  • may be reduced to £0 if you get particular benefits, even if the benefits are not in your sole income.

Details regarding the fees for insolvency in Scotland can further check at the Scottish Courts and Tribunals website. 

If you’re getting a low income or your income source are from your benefits, you can request waiving this fees through the exemption form. Your proof of income might also be necessary once you as to cancel the fees.


FAQs Related to Insolvency

What will happen if I can’t pay court fees?

There are a group of people or organization that can help you pay your bankruptcy fees through trust funds that can be accessible for you too. When getting a low income, you may request waiving the costs by applying online. In Northern Ireland and Scotland you can apply by means on completing the form.

What is a court application fee?

A court application 

A fee is the value of money that’s given to the court to commence appropriate court cases, including insolvency. The court staff can advise you with the costs that you need to pay

Can I get refunds for court fees?

Court fees for insolvency and debt solutions are cannot be given back. It’s essential that you’re certain to go ahead with your debt solution when not paying for it. We suggest developing your application initially as this will give a clear understanding of the uncertainties.

Free Insolvency and Advice

If you are in the tailspin of giving up on your debt, finance payments, you need to consider a FREE DEBT HELP. Our debt advisor can check and explore further options that will be more suitable for you.  Should you wish to, call us on  0800 193 1024.