COSTS
1. Petition Costs
The petitioner has to pay the costs of lodging the petition. These may include solicitor's fees for drawing up and presenting the petition and the court fees (the petitioner can apply for legal aid to meet the costs of lodging the petition)
A petitioning creditor only receives a preference to get these costs paid if there is a distribution of the debtor's estate. If there is any money left after the expenses of the sequestration process, he will get the costs back before a dividend is paid to any class of creditor.
2. Costs of the Sequestration Process
Unless an undertaking has been given to an insolvency practitioner nominated as interim trustee, neither petitioning creditor or debtor, nor a creditor who concurs in the petition of a debtor, incurs any liability for the costs of the sequestration process.
These costs will be met out of the realisation of the assets in the sequestrated estate. In any case where there are insufficient funds to cover these costs and where the Accountant in Bankruptcy is appointed as permanent trustee, the Accountant will meet any shortfall from public funds. Public funds are not available to meet the costs of an insolvency practitioner acting as interim or permanent trustee.