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Max Lowry
Max Lowry, Advocate
Category: Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
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Bankruptcy petition and cost question

Customer Question

Bankruptcy petition and cost question
Submitted: 2 years ago.
Category: Law
Expert:  Max Lowry replied 2 years ago.
Hi, welcome to the site. My name is ***** ***** I will help you with your question. Could you please tell me are you asking whether 1) you should pay the costs and 2) whether the £1500 costs is reasonable?
Customer: replied 2 years ago.

both really I have the petitioning amount but not there fees which they have only just told me there costs are excessive but they are refusing to dismiss the petition without there fees even though I can pay the petition amount

Expert:  Max Lowry replied 2 years ago.
Thanks for the clarification. First of all, the petitioning creditor is entitled to have its costs paid by you. The solicitors are correct, they can refuse to withdraw the petition unless the costs are also paid. The costs they are claiming are not unreasonable considering that all steps have been done and all that is left is the hearing of the petition. The level of fees being claimed is about the right figure. Even though this is correct there is no harm in making them an offer to get the matter resolved. You could suggest that if they disagree with your offer then you see no option but to let the matter proceed to court and let the judge decide whether the costs are reasonable. At least if they agree a figure with you they have certainty about their fees.
I hope this helps.
Customer: replied 2 years ago.

Ok but can I be bankrupted at the hearing if we have been unable to agree there fees or would the judge look at there fees and give me time to pay those costs.

Its just that they have only given me there costs today the hearing is on Thursday and it doesn't give me a lot of time to find the money.

And although they have a right to there fees surely I cant be bankrupted for not paying them within 48 hours or is that me being a simpleton?

Expert:  Max Lowry replied 2 years ago.
Hiya, you cannot be bankrupted at the hearing for the fees. As long as you pay the petition debt or secure it then the judge will not make a bankruptcy order. Unless the court assesses the fees at the hearing (considers whether they are reasonable or not) the hearing will be adjourned and re-listed for another day to deal with costs. I expect the petition will be dismissed or that's what you should be asking the court to do. You can ask the court for time to pay the costs over a period of time.
You are better attempting to negotiate a deal with the solicitors and ask for time to pay. Make the request in writing. If they disagree with the request to pay over time you can produce the correspondence in the court to show the judge you have tried to be reasonable and deal with the issue. This should give you some sympathy with the judge.