Published in Debt Advice Features on Friday, March 30 2007

Yes there are a few ways you end up paying for bankruptcy; through the fees, by handing over assets and by something known as an Income Payments Order.

The fees are £150 to file for the bankruptcy and £335 towards the Trustees costs.

Assets may be claimed such as property or vehicles and any proceeds from the sale of these would be put into your bankruptcy. Bear in mind these assets are often sold at auction and so do not always get the full value.

An Income Payment Order will be required if you have a certain amount of disposable income (some money left over from your income after all your expenses have been taken into account). These can be taken for up to three years usually and will be put directly into your bankruptcy. And this is why bankruptcy isn’t always the best option as you may end up paying more than you owed in the first place if you have money left over each month.