Fees for entering bankruptcy will reduce from £705 to £665 in April 2016, and will be payable in instalments. However, the fees will still need to be paid in full before people can enter bankruptcy.

The current fee is made up of a £525 deposit and £180 application fee, with the latter falling to £130 in April.

Stuart Frith, of insolvency trade body R3, welcomes the news that the cost of petitions has fallen, but says that £655 is still a large amount for anyone to find:

“While it’s a step in the right direction that fees will be able to be paid in instalments, R3 would much rather see the fees paid over the course of the bankruptcy rather than up-front.”

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