Gregory Pennington comments on bankruptcy fees increase 

Debt management company Gregory Pennington comments on the recent increase in bankruptcy fees - the second increase this year.

by Melanie Taylor Thursday, June 23, 2011
Commenting on the announcement that initial fees for personal bankruptcy would be increased for the second time this year, debt management company Gregory Pennington said that the changes will make it more difficult for many people with unmanageable debts to get the help they need.

On June 1st 2011, the debtor's deposit on a bankruptcy petition increased to £525, up from £450. Meanwhile, the court fee was increased in April 2011 from £150 to £175, taking the overall cost of a bankruptcy petition to £700.

But a spokesperson for the company added that there are other options for tackling unmanageable debts that borrowers may want to consider that may be more appropriate for their circumstances, even if they can afford bankruptcy.

An expert at Gregory Pennington commented:

"Bankruptcy is intended to help borrowers who find themselves completely unable to repay their unsecured debts, but many people find they simply can't afford the fees. In some cases, their only option is to wait for their lenders to take action, by which time the debts have often had time to grow.

"A further increase in fees is likely to leave many more people without the help they need, at a time when increasing numbers of people are in need of debt help.

"Debt Relief Orders [DROs] can help some people who can't afford bankruptcy, but they are only available to people with a monthly disposable income of less than £50, assets worth less than £300 and debts of less than £15,000. There will therefore be many people who don't qualify for a DRO but still can't afford bankruptcy.

"With that in mind, it's very important that anyone with concerns about their debts gets help as soon as they can. With early action, insolvency can often be avoided - and if it does get to the point where insolvency is the only option, a debt adviser can help people get a better understanding of the range of options available to them."

-ENDS-

Notes to Editors

Gregory Pennington currently helps over 50,000 people repay their debts through its Debt Management Plan. The company is part of the Think Money Group, one of the UK's leading financial solutions providers.

Gregory Pennington is a founding member of DEMSA, the Debt Managers Standards Association, which was established in 2000 'to promote good practice in the debt management industry'. DEMSA's code of conduct has received Office of Fair Trading approval, under its Consumer Codes Approval Scheme.

For more information, visit the Gregory Pennington website at http://www.gregorypennington.com/.

0    submitted by Melanie Taylor
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