Bankruptcy fee waiver and paying in instalments

The bankruptcy fee in England & Wales is £680, made up of a £550 deposit and a £130 adjudicator fee. It is paid to the Insolvency Service when you submit your online application. For many people on low or no income, finding £680 in one go is the biggest practical barrier to bankruptcy — so it is worth knowing the help available.

Can the fee be waived or reduced?

You can apply to pay the £680 fee in instalments rather than one lump sum. The Insolvency Service allows this when you cannot pay in full at the point of applying — you set up instalments and your application is only submitted once the full fee is collected. This is the most common route for people on benefits or low wages.

A fee waiver (or reduction) for part of the fee is available if you meet certain criteria, typically:

• You receive specified qualifying benefits (such as Income Support, income-based JSA, income-related ESA, or Universal Credit with no earnings), or
• Your gross income is below a set threshold after deductions.

The rules and thresholds change, so confirm the current position on gov.uk/bankruptcy before you apply. The waiver is applied at the point you pay, not refunded afterwards.

How to apply for instalments or a waiver

1. Start the online application at gov.uk/bankruptcy.
2. When you reach the payment step, select the option to pay by instalments or apply for a fee waiver.
3. Provide details of your benefits or income as requested.
4. If paying in instalments, agree the schedule — the bankruptcy is only processed once the full £680 is paid.

If you genuinely cannot raise the fee

• Speak to a free debt charity (StepChange, National Debtline, Citizens Advice). Some have hardship funds or can signpost local grants.
• Ask whether a DRO might suit you instead — it costs only £90 and may be more appropriate if you owe under £30,000 with low income and no assets.
• Never borrow from a payday lender or doorstep lender to pay the bankruptcy fee — it creates a new debt that may complicate your bankruptcy.

Beware fee-charging companies

Some firms offer to "help you go bankrupt" for £1,000 or more on top of the official fee. You do not need them. The online application is designed to be completed by individuals, and free debt charities will check your forms for nothing. Fee-charging companies often take payments for months before submitting anything, leaving you still owing the official fee.

The fee is not refunded if bankruptcy is refused

If the Adjudicator refuses your application (rare, usually because forms are incomplete or debts are disputed), the fee is not automatically refunded. This is another reason to use a free charity to review your application first.

See How to apply for bankruptcy online for the full step-by-step process.

England & Wales only. General information, not legal advice.