It does not cost anything for people to declare themselves bankrupt. Similarly bankrupts discharged without making any payments towards their debts do not have to pay any fees. Where a bankrupt's trustee collects (realises) money through either the recovery or sale of assets or through contributions, fees and percentages are payable to the Trustee as follows:
- an 3.5% charge is payable to the Commonwealth on gross realisations [Bankruptcy (Estate Charges) Act 1996]
- fees payable to the Official Trustee - a flag fall fee of $3000 (incl GST) plus 20% of monies realised[Bankruptcy Regulations 1996 Reg. 16.07 & 16.08]. Private trustees' fees are based on an hourly rate.
In addition the Federal Court/Federal Magistrates Court filing fee is $785/374 for a person and $1881/745 for a company. These fees are to be increased annually. This fee is not payable to go bankrupt but may have to be paid if a person applies to the court for an order (for example, for a creditor's petition or for an annulment from bankruptcy).
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What does it cost to go bankrupt? : Last Revised: Thu Jul 16th 2009
