What costs is a creditor likely to encounter in order to seek a bankruptcy order, assuming that a statutory demand has already been personally served on the debtor?

Although bankruptcy petitions are designed to be relatively straightforward, they are subject to many technical requirements, and failing to comply with these can lead to delays or dismissal. A creditor would be well-advised to instruct solicitors with insolvency expertise to manage the process. The solicitors’ own professional charges will vary from firm to firm.

The current court fee for issuing a bankruptcy petition is £280, plus a petition deposit of £990. If a bankruptcy order is made, the deposit will be refunded to the petitioner provided there are sufficient assets in the bankrupt’s estate to cover it.

Service is a hotly disputed area in bankruptcy petitions; debtors will often seek dismissal on the grounds that they were not properly served. Employing a professional process server who can effect personal service and provide a comprehensive certificate of service is the safest option.

Finally, the creditor will need to be represented at the hearing of the petition. It is sensible to budget for more than one hearing, as there are often multiple adjournments.

As to costs orders made at hearings, pursuant to the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 12.41(3), the provisions of CPR 44 and CPR 47