Bankruptcy Fees Set to Rise

Those in debt who wish to begin bankruptcy proceedings will have to pay out more in administration costs to do so from 31st January this year.

The cost of making a debtor's petition will increase from £345 to £525. The court fee of £115 will remain the same.

This fee hike comes at the same time as figures revealed in the Assembly by Arlene Foster MLA (Minister for Enterprise, Trade and Investment) indicate that four people are being made bankrupt in Northern Ireland every day.

CAB argued against this increase. Those proceeding with bankruptcy are already in financial difficulty. This larger fee will mean that many will be put off proceeding with the bankruptcy process, or will have to wait longer to be in a financial position to do so. This increased stress and hardship is being imposed on those who can least afford it.

Citizens Advice feels that, if such an increase is to be made, applicants should be permitted to make this payment in instalments, to ensure that those seeking to face their financial problems, get help and find an appropriate solution are not disadvantaged or discouraged from doing so in any way.

CAB also has concerns over this move's apparent desire to protect government finances at the expense of the potential creditors that those seeking to be made bankrupt will have. If those in debt must pay nearly an additional £200 in "administration fees" that is £200 less that is available to be considered as available for the payment of creditors. These creditors could be small firms and local businesses who can ill afford to lose out on any potential payment.