How much does it cost to go bankrupt in the UK?

Falling into debt can feel overwhelming, and many people wonder if bankruptcy is the only way out. One of the first questions that comes to mind is, “How much does it cost to go bankrupt in the UK?” Knowing the exact fees involved is important, because bankruptcy isn’t free, and the cost can affect whether it’s the right option for you.

In this article, we’ll break down the bankruptcy fees UK residents must pay, including the application fee, deposit, and other possible expenses in England, Wales, Northern Ireland, and Scotland. 

We’ll also cover what happens if your application is rejected, extra costs you might face after going bankrupt, and alternatives that may be cheaper. By the end, you’ll have a clear view of the cost of going bankrupt UK 2025 and where to find help if the fees seem too high.

What makes up the bankruptcy cost

When asking “How much does it cost to go bankrupt in the UK?” it’s important to know that the cost is made up of more than just one simple payment. 

The bankruptcy process includes different charges that together make up the total amount you need to pay before your application is even considered. These costs apply whether you live in England, Wales, Scotland, or Northern Ireland, although the exact fees vary by region.

The two main charges in most cases are:

• Bankruptcy application fee – the fixed amount you pay when you apply online.
• Bankruptcy deposit – the amount that goes towards covering the administration of your case.

In addition to these, some people may also face extra charges, such as:

• Solicitor fees (in Northern Ireland applications).
• Court fees (depending on where you apply).
• Ongoing contributions from your income if you can afford them.

The key point to remember is that all these fees must be paid upfront before your bankruptcy can begin. If you cannot pay the full amount, you will not be able to submit your application. This is why many people look for support schemes or instalment options to help cover the cost.

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Now that you know the types of charges involved, let’s look more closely at the specific figures in England and Wales. 

Bankruptcy cost in England and Wales

For people living in England and Wales, the total cost of going bankrupt UK 2025 is £680. This is made up of:

• Application fee: £130
• Bankruptcy deposit: £550

Both payments are made through the official online system on the government website. The money must be paid in full before your application can be submitted to an adjudicator. If you attempt to apply without covering the entire £680, your case will not move forward.

Can you pay in instalments?

Yes, but with an important condition. The government allows you to pay the bankruptcy fees UK in smaller instalments online. However, the full amount must be cleared before your application is officially filed. This means instalments may give you more time to gather the money, but they do not reduce the cost or allow you to start the process early.

Why the upfront cost matters

Paying almost £700 upfront can be difficult, especially for someone already struggling with debt. This fee can feel like another barrier, which is why charities and debt advice organisations sometimes help people find ways to cover it. Some may even point you to grants or special funds.

So, while the breakdown is clear, the real challenge is often finding the money before you can even start bankruptcy. But what happens if you live in other parts of the UK? The costs aren’t the same everywhere, and the next section will show you the differences. 

Bankruptcy cost in Northern Ireland

Bankruptcy in Northern Ireland works a little differently compared to England and Wales. Instead of a single online system, the process involves the courts, which means there are extra charges to consider.

The main costs are:

• Court fee: £151
• Bankruptcy deposit: £525
• Solicitor fee: usually around £7

This brings the total cost of going bankrupt in Northern Ireland to about £683. While this is very similar to the £680 charged in England and Wales, the breakdown shows clear differences in how the money is applied. For example, a solicitor’s fee is included in Northern Ireland, but not required in England and Wales.

It’s also worth noting that in Northern Ireland, you must physically apply to the High Court, which can add to the difficulty and stress of the process. This traditional system makes it slightly less straightforward than the online application in England and Wales.

Although the total figure is close, the route you take in Northern Ireland may feel more complex, and that’s before we look at Scotland, where bankruptcy has its own unique system called sequestration. 

Bankruptcy cost in Scotland (Sequestration)

In Scotland, bankruptcy is known as sequestration. While it serves the same purpose as bankruptcy in the rest of the UK, the process and fees are different, and the Scottish system is managed by the Accountant in Bankruptcy (AiB).

The cost depends on the type of sequestration you apply for:

• Full administration sequestration: £150 application fee.
• Minimal Asset Process (MAP): £50 application fee (for those with low income and little to no assets).

These fees are significantly lower than the costs in England, Wales, and Northern Ireland. The reason is that the Scottish government has introduced a more affordable route for people with very limited means. MAP is designed for people who cannot realistically afford to pay high bankruptcy fees but still need relief from unmanageable debt.

Another key difference is that in Scotland, you cannot pay the application fee in instalments, it must be paid upfront in one go. However, given the much lower amounts, this is often seen as more manageable.

So, while England, Wales, and Northern Ireland have similar fees close to £680, Scotland provides a cheaper route for those struggling most. But what happens if your application is rejected, do you get your money back? Let’s explore refunds and what other costs you may face even after bankruptcy begins. 

Refunds and ongoing costs after bankruptcy

Filing for bankruptcy is a major financial step, and naturally, many people worry about what happens if their application does not go through. The good news is that part of the fee may be refunded in certain cases. 

For example, in England and Wales, if your application is rejected by the adjudicator, the £550 deposit is usually refunded. However, the £130 bankruptcy application fee is non-refundable, as it covers the cost of processing your application.

In Northern Ireland, a similar rule applies. The deposit may be returned if the court does not approve your bankruptcy, but the court fee and solicitor’s fee are lost. In Scotland, where sequestration operates, refunds are rare due to the much lower application charges.

Ongoing costs you may face after bankruptcy

Paying the upfront fee is only the beginning. Once your bankruptcy order is approved, you could still be asked to make payments if you have any spare income. These are known as Income Payment Agreements (IPAs) or Income Payment Orders (IPOs).

Here’s how they work:

• You may have to pay a set amount from your monthly income for up to three years.
• The amount depends on how much disposable income you have after covering essential living costs.
• If your financial situation changes, the payments can be adjusted.

In addition to income payments, you might also lose valuable assets, such as property, vehicles, or savings, which can be sold to repay your creditors. This means the real cost of bankruptcy goes beyond the initial fee, it can affect your financial stability for years to come.

And if the thought of ongoing payments or losing assets makes bankruptcy seem less appealing, you may be wondering whether there are other, possibly cheaper, debt solutions available. 

Not Eligible for Bankruptcy? 

If you’re not eligible for bankruptcy, you might want to explore other potential debt solutions in the UK. There are several options available in the UK, each with its own eligibility criteria. Choosing the right option can help resolve your debt issues, but the wrong one may make your financial situation worse.

However, it is essential to seek professional advice before committing to any debt solution. A debt advisor can help you assess your situation and guide you in selecting the most appropriate option.

Some of The Key Debt Solutions Available in England, Northern Ireland, and Wales:

• Debt Management Plan (DMP): An informal arrangement where you make monthly payments toward your debts. There is no legal commitment, but your creditors may agree to reduce interest or freeze fees.
• Individual Voluntary Arrangement (IVA): A formal agreement where you make regular payments to creditors over 5 or 6 years. The remaining debt may be written off, but this solution has strict criteria.
• Debt Relief Order (DRO): Designed for individuals in severe financial distress, this option freezes interest and allows a year of no payments, potentially leading to debt resolution. 

Debt Solutions Available in Scotland

1. Protected Trust Deed: A formal agreement to repay part of what you owe over four years. The remaining debt may be written off afterward. It is legally binding and affects your credit rating. 
2. Debt Arrangement Scheme (DAS): A government-backed scheme allowing you to repay your debts through a Debt Payment Programme (DPP) based on what you can afford. Interest and charges could be frozen, and creditors can’t take legal action. 
3. Sequestration (Scottish Bankruptcy): A formal insolvency process where most debts may be written off, but assets may be sold to repay creditors. It offers a fresh start but comes with serious consequences. 
4. Minimal Asset Process (MAP): A simplified form of bankruptcy designed for individuals with low income and few assets. It allows eligible debts to be written off after six months, provided the individual fully cooperates with the process. However, in practice, the process may take longer depending on the complexity of the case. MAP also offers lower fees and reduced administrative burden compared to full bankruptcy.

Caution: These debt solutions have both advantages and drawbacks, so it’s important to carefully weigh your options before making a decision.

Conclusion

So, how much does it cost to go bankrupt in the UK? The answer depends on where you live, but the picture is clear: bankruptcy is never free. In England and Wales, the £680 fee must be paid upfront, while in Northern Ireland the total is similar but includes court and solicitor costs. 

Scotland, through sequestration, offers a cheaper route with fees starting at just £50 for Minimal Asset Process, making it more accessible for those with limited income.

Beyond the application charges, there are other financial realities to face. Deposits may be refunded if your application is rejected, but processing fees are not. 

You may also have to make income contributions for up to three years, and in some cases, assets can be sold to repay debts. This means the true cost of going bankrupt UK 2025 is more than just the initial fee, it can reshape your financial life for years.

Bankruptcy can provide a clean slate and remove overwhelming debts, but it comes at a price. Before making a decision, it’s worth exploring alternatives such as Debt Relief Orders, Individual Voluntary Arrangements, or seeking advice from a debt charity. 

The key is to weigh both the costs and the long-term consequences carefully. If you’re unsure, getting professional debt advice could be the most valuable step you take before deciding on bankruptcy.

Key Points

• Bankruptcy in the UK is not free, and costs vary depending on whether you live in England, Wales, Northern Ireland, or Scotland.
• The main charges include the bankruptcy application fee and the bankruptcy deposit, both of which must be paid upfront.
• In England and Wales, the total fee is £680, made up of a £130 application fee and a £550 deposit.
• You can pay the bankruptcy fee in instalments in England and Wales, but the full amount must be cleared before submitting your application.
• In Northern Ireland, the total cost is about £683, including a court fee, a £525 deposit, and a solicitor’s fee.
• In Scotland, bankruptcy is known as sequestration, with lower fees: £150 for full administration or £50 for the Minimal Asset Process.
• If your application is rejected, deposits may be refunded, but application or court fees are non-refundable.
• Ongoing costs may apply after bankruptcy, such as Income Payment Agreements or Orders, requiring payments from spare income for up to three years.
• Bankruptcy can also involve the loss of assets like property, savings, or vehicles, which adds to the overall cost beyond the initial fee.
• Alternatives like Debt Relief Orders or Individual Voluntary Arrangements may be cheaper options, and professional debt advice is recommended before applying.

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