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HI just wondering as i have failed in my IVA i need a rough figure as to the cost of going bankrupt please? i owe approx 25k

Hi tkst and welcome to the forum - this is not my area of expertise, but the figure generally bandied about s £485 for the actual court costs, then there are additional costs for disbursements of assets (usually 10%) and 17% tax – as I understand it.

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Hi tkst

If you are wanting to petition for your own bankruptcy, you will need to pay the Court £485 in cash on the day of your hearing. Thats it - no more money. If you have any surplus income once the OR has been through your I & E, they will call for 50% of it which you will have to pay through an Income Payment Arrangement for 3 years.

Sue

Ho Hum! Think I'll bang my drum!

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Mike

I have to correct you on your figures. You are correct in the £485, this is a standard fee payable by the applicant in every Court - which I suspect is what the poster was looking for. Thereafter, there are charges levied upon the assets, based upon 17% of all realisations over £2,000. These are called Ad Valorem Charges and are payable to the Insolvency Service, and are not taxes. Not sure where your 10% comes from.


Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
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Hi Melenie - Thanks for the correction, as I said not my area of expertise, the 10% for disbursement costs was something I was reading yesterday whilst researching the total cost of bankruptcy, can’t remember where it was – Note to self: Must make more notes…

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

Firm FSA No:313790
Personal FSA No:MJB01557

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

That's why you don't see me giving out mortgage advice!!! Well not very often anyway!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

hmmm, likewise regarding IVA's and Bankruptcy

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

Firm FSA No:313790
Personal FSA No:MJB01557

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

What happens if you can't afford the £485 payment?


Kitkat44444

Then you cannot make an application for bankruptcy. And these days this fee needs to be paid in cash.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

So what then? If you can't afford to repay your creditors, an IVA or bankruptcy?

Kitkat44444

Write to the creditors and tell them you cannot do either, and invite them to make you bankrupt. It is unlikely that they will, but there is nothing else you can do.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

I stopped paying my IVA contributions so that I could save the money for my BR fees.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

Thanks Melanie and Skippy for those answers. Very helpful.

Kitkat44444

I was given the same advice as Skippy by my IP

Surely the creditors will eventually make YOU bankrupt if you don't do anything?

Debbie

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