March 22, 2010 -
PRLog -- With the Insolvency Service raising bankruptcy costs by 90 the price of going bust has never been so high, standing at 600 all in, including court fees. However, when the cost of bankruptcy is seen in context of the average bankrupts unsecured debts, this is still value for money for the debtor. 600 is just 2% of the average amount of unsecured debt which stands at 33,000. In fact it actually costs the Insolvency Service 1,715 to administer and investigate a bankruptcy, recoverable on asset realisations, although sometimes this wont get paid. The higher charge has been introduced to ensure that bankruptcy costs dont come out of the public purse and fund the Insolvency Service, which has never seen such a high demand for its unwanted services. To cover the 600 fee we have seen cases of family and friends pitching in and in other instances, we have seen cases where employers will lend the money to be paid back on future earnings. There is better news for those who can''t afford bankruptcy and have debts of less than 15,000, as it is proposed to allow them access to the Debt Relief Order process, costing less than 100, even if they have a small pension.For those with larger debts, it does cost money to go bankrupt but that could be money well spent, providing peace of mind and marking a line in the sand.The Association of Business Recovery Professionals is the UKs leading trade association for insolvency, business recovery and turnaround specialists in the UK. Known also by its brand name R3, it promotes best practice for professionals working with financially troubled individuals and businesses. R3 has representation around the UK and provides a forum for debate on key issues facing the profession.R3, The Association of Business Recovery Professionals is registered in England and Wales at 8th Floor, 120 Aldersgate Street, London EC1A 4JQ. Registered in England number 2553435.
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