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From today it's easier to enter bankruptcy

From today, applications by insolvent individuals to enter bankruptcy will be made online rather than by petitioning the court. Applications will be assessed by a government adjudicator rather than a judge.
The up-front cost of entering bankruptcy will fall as a result. In total, it will now cost people applying online £655 to enter bankruptcy (down from £705). The £655 comprises a £130 application fee and a £525 government deposit.
These fees can now be paid in instalments, but crucially, the applicant may only enter bankruptcy once all of the £655 has been paid.
Phillip Sykes, R3 president, says: “The fall in the cost of entering bankruptcy and the introduction of online applications is good news. Both changes will make bankruptcy much more accessible to those who need it, although the government will need to keep a close eye on the new system to ensure fraudulent applications are spotted and that the new system works as well as the court-based system it replaces.”
“The easier it is for an individual to enter an insolvency procedure that is appropriate to their situation, the easier it is for them to pay back what they can and to get back on their own two feet again. It’s better for the individual, their creditors, and the rest of society.”
“Obstacles still remain to people entering bankruptcy, however. The application fee and deposit should be paid in full before an individual can leave bankruptcy, not before they can enter it. Up-front fees mean bankruptcy is accessible to only those that can afford it, not all those who would benefit from entering it.”
“It is hard enough for most people to find £655 when they’re solvent, let alone when they’re facing bankruptcy.”

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.