Help with bankruptcy fees
For those on benefits / low income and with debts exceeding £20,000 and considering or needing Bankruptcy when on Benefits we can help. Bankruptcy is generally the best solution for overwhelming debt when you simply don’t have any assets and live in rented accommodation whilst earning only sufficient for you basic living expenses. There is no possibility of being placed in an Income Payments Agreement (IPA). An IPA is the Insolvency Service’s way of raising money over a 36 month period to distribute among the creditors, but also to cover their own administrative costs in processing the bankruptcy.
This is providing you are not expecting to come into money during the 12 month term of the bankruptcy order. If you are in debt and expecting an inheritance or monies due from a house sale then don’t do it without seeking professional help first.
The problem, is generally how to raise the £680 required to cover the cost of the bankruptcy. As from 6th April 2016 everyone has to pay the same fee and there are no exceptions for those on benefits or low income. Some people are fortunate in that they have relatives who will cover the £680 cost, but for many this simply isn’t an option. But you can now make payments monthly to the insolvency service and claim the protection of bankruptcy.
For anyone in this position, there are a number of charities and organisations that may help with Bankruptcy costs and fees depending on eligibility. Some examples of these might be:
- Severn Trent Trust Fund
- EDF Energy Trust
- Royal British Legion
- Various Trade Unions – visit the Trade Union Congress (TUC) website
- Union Finder from Worksmart
- British Gas Energy Trust
- Macmillan Cancer Care if you or a family member has cancer
- United Utilities Trust Fund
Please note, you might need the assistance of the Citizens Advice Bureau in completing applications (though many do not) relating to the above and also be aware that applications can take anything up to two months to process so give it plenty of time.
If you are one of the lucky ones who has a friend or relative that will lend you the money, take care not to mention that you borrowed the money as that person could end up being one of your creditors! You need to say that you were given the money.
And finally, please remember that if you are on benefits you will at least not be required to contribute towards the bankruptcy in an Income Payments Agreement. Your debt will be gone and there will be no further action against you.