Can you afford to go bankrupt? You may think this is an odd question but many borrowers are unaware that you have to pay to be declared bankrupt, not only that but bankruptcy fees are increasing despite there being no increase in the cost of administering bankruptcy. So if you’re credit card debts are mounting up and you are thinking if it all goes pear shaped I can just file for bankruptcy it may not be as simple as you originally thought and may take you a while to afford the bankruptcy fees itself.

The government has announced that the cost of bankruptcy will increase in April and is raising its fees by £90. From the 6^th April the cost of bankruptcy will rise from £360 to £450, as well as an additional court fee of £150 which will be waived for those on benefits but overall the cost of bankruptcy will be at an all time high of £600. This is far from good news for those borrowers who are severely stressed and unable to afford to pay anything at all towards their credit card debts and are seeking credit card debt relief in the form of credit card debt bankruptcy.

The new increase in bankruptcy fees will force borrowers to seek debt advice on alternative debt solutions such as a debt management plan or a debt relief order.  On a positive note these solutions don’t have the same negative stigma as bankruptcy and in most cases a debt management plan can help a borrower to achieve credit card debt relief and put them back on the straight and narrow, as creditors will see that the borrower is willing to attempt to pay their debts back and are actively seeking credit card debt management help.  

The best thing to do is to call a free debt helpline where you can get free professional advice on the debt solutions available, then weigh up your options and choose the most cost effective solution to suit your circumstances; bankruptcy should only be your last option.