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Bankruptcy Positive Negatives

Bankruptcy Positive Negatives 


Few people start their financial lives with failure in mind. We all hope to succeed with work and business efforts, not fail. Many times people just run out of time to think their way out of certain challenging situations.


We are all built differently and our comfort zones vary considerably. For those who struggle with stress and depression, just getting through the obstacles can be a challenge. To stand strong when it’s easier to let go, brushing ourselves down and continue putting one foot in front of the other in the face of adversity; these things are not easy.


With 23 years in the industry and after helping countless people who have found themselves in a position where personal bankruptcy is a fact, there is no choice other than to go through the bankruptcy process and find out the Bankruptcy Positive Negatives.


I am the founder and driver of www.bankruptcy.co.uk that I created in 1998 because I knew that my skills can help people who find themselves in unthinkable financial situations. It would be fair to say that I can generally find all the Bankruptcy Positive Negatives in most situations.


I apply my skills to people to provide them with the confidence in knowing that we completely understand the position they are in, and how they have arrived in that position and the reasons why. This is a relatively short process, but even with the most complex cases can be resolved within 45 minutes provided the right questions are asked.


Once this information is obtained I run through options and potential outcomes that sit well with the client.


Extreme but very common cases where a person has held out against aggressive creditors, who might have engaged multiple debt collection and recovery companies, then applied the court process and followed up with Bailiffs and Sheriffs.


Then this person is likely to be cornered and trapped and will need a very fast solution if they are to take a pro active approach to managing and dealing with the situation in a way that the right outcome is achieved. It is often the case that self employed people will entrust others with important aspects of their businesses, only to find that they have been let down.


My experience and skills allow me to provide clients with an exceptionally dynamic service where we take control and direct efforts towards the most cost effective and time saving solutions.


Bankruptcy Positive Negatives


Lets start with the negatives. The reason is that if you deal effectively with the negatives the positives generally take care of themselves. There will always be heart moving and personal reasons as to why people have ended up having to consider the consequences of bankruptcy.


A divorce or a separation will invariably have a different outcome from what was originally intended. With the right mindset to move forward and with thoughtful decisions will benefit those individuals that apply it opposed that ‘don’t’, ‘can’t’ or ‘don’t know how’. The loss of a loved one, terminal illness, illness or an accident can have life changing implications.

These are really hard to sensitively verbalise. There’s no choice and not really much chance of a financial recovery, unless there is some luck involved. Thoughts and conversations regarding mortality have to be faced, and for those with legacies, it’s time to get your affairs in order.


Ordinarily, bankruptcy is looked at as the end of the line, but we know that it’s the beginning of something new. If positioned in the right way, you can up and running immediately if you choose. Bankruptcy negative positives represent the end of a distressing financial situation, where survival from the point just after is the best immediate short term outcome.


I’m fairly certain that people do not start their financial journeys with failure in mind. They start with optimism and the best intentions. They apply their core skills and engage all their knowledge to balance their businesses and take chances they believe will work.


These people generally consist of individuals that have either always worked and who have been employed that over the years have signed up to complex financial instruments such as loan and credit agreements that eventually they are unable to repay.


These people comprise the skilled labour market who decide that for their own reasons that they are entrepreneurial and who want the independence of starting their own business. To the professions such as doctors, dentists, solicitors, barristers, financial advisors, accountants and estate agents, recruitment consultants, property developers and many others.


For these people there can be a lot to lose with a bankruptcy or even an IVA (Individual Voluntary Arrangement), for that matter. It very possible today that over the past few years they might have transferred a frozen or active pension, only to find that the investment has plummeted or, worse still, has been placed into liquidation and all retirement monies are now lost.


If this is you or you know someone that this has happened to then they should call us as we are very effective with getting people their money back. Having to come to terms with going right back to the beginning and starting over after sometimes a lifetime of effort is a daunting thought.


What is important is the manner in which you react and whether you have the ability to deal with the disappointment and go again. Remember, it’s up to you how you react to things. You have the choice. Being insolvent and in a position where your liabilities outweigh your assets, you are entirely relying on your core skills to get through the situation.


It means that you have to accept that some of what you have created may not be coming with you in the future. Depending on your personality type you could end up feeling like a failure.

The consequences can be considerable, especially if you have people around you that have learned to count on your leadership and rely on you for their income.


All these are reasons why there can be such a huge difference to the outcomes. Because we all react in different ways and generally want different things. I believe what is important is the ability to detach yourself from what has happened and, where possible, take the positives from it.


Look at it like a learning curve. If given the same opportunity what would you have done differently? Of course, this is real life and not some educational project, but there’s a lot to say for looking at it like one, even if it’s your life we are talking about. For those people who still have time on their side, it might be viewed as restructuring.


Something like applying director services as a solution would essentially mean that a person with a fresh approach, an understanding of your business, a strategy to apply with immediate effect would mean that the priority is to apply damage limitation, get control, change the commands to whoever is part of the trading entity. Work towards a just and fair outcome.


The question is always finding that right person because more often than not you care about your business more than anyone else cares about it. Before I go too far I want to make a couple of points quite clear.


Firstly I think I’ve established that we are all different and that our values vary dramatically, the relationships that people end up having and being committed to will vary too. Although it’s nice to think that you can help everybody, we can really only help those who can help themselves.


So this post is aimed at people who lead and people who are responsible for themselves first, as opposed to those people who are in positions where other people take the risks and have been provided for by another person’s income or capital.


By allowing others to pay the bills take the risks generally results in the inability to fend and provide for oneself. This isn’t a fair and balanced position but a lot of the time people’s lives aren’t fair and balanced, and there are other elements that hold people together.


There are good examples out there of people that work well in teams, the roles are defined for fairness and interdependency, where communications are good. The original hunter gatherer and home builder. Where the home keeping roles are defined and fair and communication is good. These are ideals and it’s certainly not an ideal man made world out there and many people are on their own for their own reasons.


If freedom is a priority and not wanting to be answerable to anyone but yourself then these types of people are in control of themselves and they will stand or fall by the decisions they make for themselves. In many ways facing bankruptcy in this position could be argued as better, as it’s likely to be only you that will be affected.


But there are again could be reasons that this person could have positioned themselves out in front because they have created a position of safety for their family or loved ones and they know that by working alone they can move at a speed that suits them and they don’t have to have their speed controlled by anyone else.


Generally if you work in a team, you have to go at the speed of the slowest person. This can be frustrating because left alone to get on with things without distraction could be what is needed but can’t always be obtained because of others around them slowing them down and having inference on the decision making process.


Take the example of a business person who has had a successful start up and has then grown the business to a position where there are shareholders and an increased number of partners who all have a say on the decision making process for that business.


The original spirit that came up with the concept and put time and effort into developing a successful business strategy, then has to answer to people who have a say in where and how that business is directed. This can be totally disenchanting.


So now we are clear on the above let’s move on with what this post is all about.


The Negatives:


  • Accepting that the position you have ended up in is your doing because of the decisions that you have made that have resulted in a failing business and or financial position that is beyond recovery.
  • Accepting that because you are in this position there is a strong possibility that other people around you are going to be affected by your forthcoming demise.
  • Accepting that if you have been in denial and have carried on regardless because you truly believed that the position would recover itself  and that circumstances would or will work themselves out because they always have in the past, is possibly one of the hardest things to get to grips with.


Not only that but extreme things happen. A percentage of people lean towards suicide and often actually carry it out. Is this going to stop all of a sudden? No, of course it’s not; if anything, this generation is more prone to depression, being overweight, ill disciplined and have social media distractions, which unfortunately breeds mental illness in itself.


We are part of a want it now and get it now culture where most things are accessible from a smart device. It’s a huge risk allowing yourself or someone else you know go this far to the edge because its bitterly hard to come back from this point. Right now and tomorrow there will be people reaching this point. If we can reach these people and give them hope, then everyone can make a difference.


Examples of people generally in this instance they are those that get to a point and look at their lives and those with life insurance may consider that they are worth more dead than they are alive, and on the other spectrum those without it whose families and that have financial commitments and have to strive hard just to make ends meet cannot afford to hold that thought and may even see it as an easy way out.


Either position is a position that makes it feel like a total effort just to put one foot in front of the other just to keep going.


People need to be inspired, people need to have choices and options and very importantly they need to be able to find solutions that can be applied to their circumstances that are usually completely obvious to an outsider looking in. It takes courage to be honest and realistic with yourself.


To re evaluate your own value system in a different way that your mind has always conducted itself before is without question a hard thing to do. If you haven’t been quite honest with those around you who are being affected by the outcomes of your actions then this shift in personality is hard to achieve generally because of the fear of loss that is present when you are personally considering your options.


The Positives


As far as the positives go I think you can see that when you take into account the complexities of the above and just pause for thought for a moment. What can we see? Well, let me tell you what I see: what I have learned is that life and society allows us to react the best way we know how.


If in your life you have been a winner and come from good survivalist backgrounds then the chances are that you will make lighter work of the difficulties. You will have already learned how to defend yourself when you are in a position of weakness.


Know and understand that negotiations from a position of weakness when you are against oppressive opponent are more difficult if you haven’t received the skill set to know how to manage and control and obtain the outcome that you want because your skill set is better than your opponents.


Bankruptcy Positive Negatives

Sean M Kiani.



Secured loans and Unsecured Commercial Loans

Secured loans and Unsecured commercial loans available for bankruptcy and individuals in IVA agreements. Call 01425 600129

Here at bankruptcy.co.uk after nearly 20 years in the industry understand the importance of being able to get the money you need when you need it. If you need a secured loan or any type of bridging finance then call us today or request a call back.

2016 and 2017 so far have shown the world that we should face the future expecting the unexpected.

Right now there are considerable elements that are impacting our money and our businesses just the currency conversion values are impacting balances sheets on every single trading entity.

For those people that run their own businesses successfully but for whatever reason are now in a position where they need to free up capital and assets may be UK based or in Europe or overseas then we may be able to help you with getting a secured loan to free up cash for your business.

We can provide you with access to both regulated and unregulated lending sources.

If you own property in Europe then its highly likely that the conventional banks have any appetite to lend against property even if there is significant equity available. In this instance we can access lenders that are happy to lend Partners secured loan monies against property or assets on generally a short term basis 12 months.

If you are looking for a short term bridging loan then we can introduce you to a source of funds that fit your needs and requirements.


Borrow up to £500K Business Payday Loan available
80% of turnover, CCJs OK
Cash available in 72 hours

If you are in Business and you can not get the finance you need to get to the next level then we can provide a funding solution to meet your needs with loans up to £500k. Business 2 Business commercial finance to Sole Traders and Directors seeking funding equivalent to 80% of last 12 months turnover.

Bankruptcy.co.uk is a long established provider of insolvency solutions and has the experience to solve any problem, whether this be personal or business related. We will not hesitate to approach any creditor that is harassing you, including Debt Collectors, Bailiffs and HMRC. In short, you will be protected from the minute you call us. Although most of our clients are those with personal debt, we also offer an effective business rescue service. Whatever the issue, we will listen carefully to what you have to say then provide a solution. We are not a ‘hard sell’ Bankruptcy service and will provide you with all the information you need to make an informed choice. Call now on 01425 600129 or 07479 739139 to speak to an insolvency specialist. We are available Monday – Saturday until 10pm and Sundays until 6pm.

Considering Bankruptcy As An Option


All financially active people can end up considering bankruptcy at some point in their life.

Most individuals choosing bankruptcy as an option is the last resort.

Our clients consist of professionals and ordinary people with over £25k debts. They are ordinary folk who have jobs and lives to manage and have simply ended up in financial positions that they would never have been able to foresee that they would have ever been in this position.

Who considers bankruptcy as an option

Its not just ordinary householders that consider bankruptcy as an option. Its Barristers., Doctors, Dentists, Estate Agents, Independant Financial Advisors, Builders, architects all manner of professionals as well as Tradespeople, Property Developers, Traders, Online Gambling or Forex traders.

Ordinary people living ordinary lives with ordinary financial commitments where a change has happened that influences everything.

Retired people who have tried Debt management Plans, or have entered an IVA which has failed or is failing.

Recently divorced or separated where one or the other has accumulated debts and now has monthly payment commitments where the income just isn’t sufficient so service living cost monies and minimum repayments.

People who have entered an IVA and who realise that actually they have no assets ton protect, they have agreed that the payments are to increase and subsequently cannot mange these higher payments because there are costs that weren’t foreseen or included at the time the IVA was arranged, or they have received an annual statement only to find that no monies have been paid to the creditors at all and all monies paid over have gone to pay the IVA company’s fees.

Self Employed individuals who have run into difficulty with HMRC and its usually a demand for payment or a bailiff visit or letter that triggers them to take action.

Company directors who have ended up in a position where future trading seems impossible because of something that has happened.

These reasons usually consist of.

  1. HMRC demands for payment for monies that are unavailable through the business. It may be that personal credit has already been put into the business and options are running out.
  2. Problems with an accountant who has caused the business a serious accounting problem.
  3. A dispute with a Landlord or supplier that seemingly cannot be resolved through attempts to negotiate.
  4.  Something has happened that wasn’t foreseen and the person simply doesn’t have the skill-set or knowledge to manage the situation that is ahead of them.

How can we help You:

Very importantly we are not an advice organisation. My philosophy after nearly 20 years in this industry is that anyone who asks us for help and assistance must understand that if whatever options are going to be taken are taken because the person will be asked a series of questions that they have never been asked before. The responses to these questions empowers the person with the right amount of knowledge to decide what they want to do on their own.

My experience with companies that advise is that it feels to the client that they are being sold a solution and they use words like, you must, you should.

My team are trained to ask a short series of questions that very quickly provides us with a complete snap shot of the persons circumstances, and very importantly How or what have been the contributory factors as to how they have ended up in the position that they are currently in. Its important to understand our clients needs at the very first phone call. It really doesn’t take long at all and virtually every client feels better than they did before they spoke with us. In managing services that we provide its always been so very important that a client journey is positive and that they aren’t just dealing with the problem they are dealing and finding positive solutions and new directions that will help them to move to safer ground and be in control. Our job is to empower our clients with the basic skill sets are are needed to move into the future with.

Our job is to provide the solution that works for you.


HMRC Homeowner Bankruptcy Avoidance

HMRC Homeowner Bankruptcy Avoidance

Avoiding bankruptcy when you have assets such as a home with equity or other assets that you don’t want to lose is essential.

Generally, its HMRC or Council Tax that makes the majority of individuals bankrupt in the UK and we’ve found that most people simply don’t understand the implications of being made bankrupt.

Therefore if you are or have been made bankrupt and you are a homeowner with equity in the property or have other assets that will enable you to clear all your debts in full then you may want to consider bankruptcy avoidance.

If you have received a statutory demand and have tried to get help, but for some reason have been unable to find the answers you are looking for, we suggest you call us as the problem is not going to go away. When you are made bankrupt and you are a homeowner, a £3000 debt will escalate into a much bigger debt.

Consider this example: 

Mr F is made bankrupt in march 2015. He is a homeowner with sufficient equity to clear all of his debts. He was made bankrupt by HMRC for £10,841.39 and the trustees fees are broken down as follows:

Statutory interest:-                                   £ 1639.00

Trustees costs:-                                         £19,128.30

Estimated Additional costs:-                  £ 5000.00 

Trustees Disbursements:-                       £   886.99

Estimated additional disbursements:-£    250.00

Legal Fees:-                                                £ 4781.85

Estimated additional legal fees             £ 1000.00

Agents fees:-                                              £  722.00

VAT                                                             £ 6353.87

Insolvency Service:-                               £ 1224.84

Petitioning Creditor costs:-                   £ 2297.00

Secretary of State Fees:-                        £11,957.53

Hence the total amount required to pay off all of the bankruptcy debts and achieve annulment is £66,083.55      

In this example, we can see how a debt of just £10,841.39 has escalated over the course of 22 months into a debt of £66,083.55  

If you are that homeowner facing bankruptcy but hesitating in drawing the money out of a property to pay the debt then now you can see why its worth doing whatever it takes to get a debt paid when you are a potential bankrupt homeowner seeking assistance.


Director Protection where a company is facing Liquidation or Insolvency Proceedings

Director Protection When A Company is Facing Liquidation or Insolvency Proceedings: T: 01425 600129 (local rate)

“That will never happen to me. My business and my team are far to strong and organised for that to ever happen“.

There’s no company director out there who is exempt from a business failure. People build their businesses over time and often sign personal guarantees with banks, take advice from accountants and other professionals, yet still fail. This might not always be their fault: the accountants might have provided inappropriate advice and business partners default on promises. It happens all the time.

The facts are that 80% of new businesses fail in the first 2 years. Entrepreneurs that start up businesses do so on the basis that they believe that they can make a success of a product or service, and ‘set up shop’.

If you are a director who is heading for the rocks or who has hit the rocks and all kinds of new administration and litigation processes are visiting you, then you need to take action. This is what we see a majority of the time. See if you recognise any familiarities with yourself.

We are in late March 2017.  Things have changed.

Not so long ago, you had an effective team and you could reach out and get what you needed at any given moment in time. You led your business from the front.

But since that time, certain staff members have slacked off and allowed the mangers to take the lead. You might have offered your accountant a share in the business.  There might have been a sudden change in your personal life and it has become common knowledge. Suddenly, the focus of the team has shifted and there is more concern about your personal issues than keeping the team strong. The team no longer finds solutions to problems, but instead approaches you for solutions. Apathy has set in with all of its malignancies.

Remember, people are selfish. You might have thought that your team was 100% committed to you, but the only reason they are committed is that you are paying them to be. Would they walk with you if you couldn’t pay them? Definitely not is your answer.  If this is your thinking then you are deluded. The most important time for making the right decisions in your 40s and 50s, as time ‘is running out’. You would have built up considerable business experience over the years and would have a good idea of what works.

The pressure is on to get it right, so making the right choices is important. There’s no time to hide behind the people that you have employed and who are already proving themselves to be part of the problem.

The time has arrived to take positive action, if you to avoid losing the business altogether. Administration is a good way of guiding your company through troubled waters and this is generally undertaken by an Insolvency Practitioner. Provided you find a dynamic one, someone who shares your vision and who can demonstrate a strategy for the future, an administration is a proven way of recovering the company’s position.

The alternatives are:

CVA – Company Voluntary Arrangement – Providing 75% of the total amount of debt owed can agree to the proposal then this can be liberating for the company or business.

Company Liquidation – When the business has no recovery position, a Director’s liquidation should be more advantageous. The reason is that you will go through the process of shutting the company down properly. All difficult areas will be covered. This is where Director Protection is critical and will make the absolute difference between a good result with no or marginal complications or you have chosen the wrong liquidator and your world and life as you know it is going to significantly change.

Don’t be afraid of alienating people if its those very people that have contributed to the current position.  I would say that it is critical to make your own decisions. You are the one thats responsible for your company director obligations despite how much you had thought that it was sorted and under control via a 3rd party. Its you.

Here’s the important bit:

If your company is facing liquidation and you believe that you have left yourself open and exposed and may need director protection. Then delaying isn’t going to help.

The process with both involuntary and voluntary company liquidation is that reports need to be prepared and submitted to the Secretary of State.

If you lined up 10 Insolvency Practitioners and gave them the same liquidation to manage you would find that they would all have a varying way of dealing with it. Often is the case that they are afraid to speak openly.

They could help and assist you by explaining to you varying options that will help you personally but are unlikely to suggest things that will really help you because they are looking at what is in it for them most of the time.

If you are feeling browbeaten by the process then its critical that you pick yourself up, brush yourself down, figure out a plan and go through the problem areas and speak to someone that can afford the time to give you to ensure you understand everything and the implications of certain actions.

In a nutshell you need a pro active accountancy firm or Insolvency Practitioners. A face to face meeting, a contact telephone number where you can speak to them when you need to.

23rd March 2017







Bankruptcy Myths Debunked

Many of those considering bankruptcy often abandon the idea due to fear of the unknown. With doubt surrounding all manner of issues, people opt for ‘safer’ options such as Debt Management Programmes (DMPs) or Individual Voluntary Arrangements (IVAs).

Ironically, the very alternatives designed to ‘soften the blow’ often result in protracted payment plans that achieve little or nothing. Under a DMP, there is little prospect of ever repaying the capital while most IVAs are abandoned after 2 – 3 years due to the payments being unaffordable and constantly reviewed.

Indeed, 80% of our client base is made up of former DMP and IVA clients. With a maximum bankruptcy period of just 12 months and a guarantee that the debt is liquidated once and for all, smarter members of the public have seen the light. Who needs a five year debt plan when everything can be done and dusted in 12 months?

Of course, there are the usual doubts: ‘What will I lose?’, ‘Who do I see?’ and ‘Will I be embarrassed in open court?’ To put your mind at rest, here are the top eight myths and the answer to the questions:

I will have to explain myself before a Judge. This is no longer an issue as cases are now processed online and there is only one phone call involved, but no face to face interaction. Other communication will be by letter and email, but nobody comes to your house at any point during the process. You can literally enter into bankruptcy from the comfort of your armchair.

Bankruptcy will ruin my credit rating forever. Wrong. In many cases, people have good credit ratings as soon as 18 months after discharge. If active measures are taken to improve credit ratings, it is now possible to get a mortgage three years after discharge, provided there has been no trouble in between.

I won’t be able to have a bank account . It is now extremely rare for banks to close accounts unless there was debt with the bank in question. However, if you are having problems try the Barclays’ ‘Cash Account’ (which has a chip and pin card) or Cooperative Bank’s ‘Cashminder’ account. Both will welcome you with open arms.

I will lose my mortgaged property. Not necessarily. If the house is in negative equity, any decision will be deferred for 27 months pending another assessment of the equity position. Even if it was found there was some equity after two years, a forced sale is unlikely. More likely is that a charge would be placed against the property, to be redeemed when the house was sold.

Bailiffs will take everything away. Wrong. Bailiffs have got nothing to do with the bankruptcy process. Bailiffs usually only appear for one of two reasons a) non-payment of the monthly terms of a County Court Judgement or b) non-payment of Council tax following the issuing of a Liability Order. If you have neither of these you will not see a bailiff.

I will lose my job if I go bankrupt. Most unlikely. There are few professions that have restrictions and these are mostly in financial services and Solicitors, but for most everyday jobs this simply isn’t the case. We have taken countless NHS staff, teachers, Council and office workers through the procedure with no comeback.

I will have to make monthly payments for the next three years. Although it’s true that the Official Receiver will assess whether you have any surplus income with a view to placing you in a payment agreement, this is avoidable. We use the  same income calculators as the OR and know the limits of everything that can be claimed in overcoming this problem.

My Landlord will ask me to leave. If you feel that your tenancy may be under threat, you can now overcome this issue by providing a copy of your tenancy agreement to the Official Receiver upfront. Provided your landlord isn’t one of the creditors in the bankruptcy, no letter will be sent.

And there you have it, most of the issues have been debunked. There might be other factors that we haven’t covered here, but give us a call on 01425 600129 and we will gladly talk you through it.

Top 10 Bankruptcy Quick Questions

Bankruptcy Questions

For more detailed answers to the Top 10 Bankruptcy Quick Questions please visit our FAQs or Bankruptcy Questions, but for now here are our Top 10 Bankruptcy Quick Questions:

Is it true that I no longer have to attend court for bankruptcy?

Correct, everything is done online now. The case is initially referred to the Adjudicator is Bankruptcy, who then passes it on to the Official Receiver as has always been the case.

Can I get a reduction on the £680 Bankruptcy Fee if I am unemployed?

No, everyone has to pay this fee regardless of circumstances.

Will I lose my job if I go bankrupt?

No, this won’t happen unless you are employed as a Solicitor, Mortgage Broker, Financial Adviser or similar position. Every day jobs (NHS, retail and office jobs) are not affected.

Will I lose my car if I go bankrupt?

Cars on finance will be lost, but you are otherwise allowed to have a car valued up to £1,000 provided it is needed for work or you are a Carer.

Does anyone come to my house if I go bankrupt?

No, nobody comes to your house at any stage to assess whether you have assets. Bailiffs do not form part of the bankruptcy procedure and will not arrive on your doorstep.

Will my Landlord be informed if I go bankrupt?

Yes, but this can be avoided if you produce a tenancy agreement and advise the Official Receiver that your tenancy may be under threat if your Landlord is informed.

Can I have a bank account if I go bankrupt?

Yes, this no longer an issue, though you will definitely not be able to keep an account that formed part of the bankruptcy e.g. a loan and overdraft was included.

Will I ever be able to get a mortgage if I go bankrupt?

Yes, it is now possible to get a mortgage three years after discharge, provided there has been no trouble in the interim.

Should I use a Solicitor for bankruptcy?

No, this will be too expensive, but it’s important that you seek advice as the online application is fraught with danger. The Income and Expenditure section has been designed to trip people up.

Will I have a monthly payment after bankruptcy?

This relates to the previous question, where a bodged Income and Expenditure will see you tied up in an Income Payments Agreement for three years. Call us, we know how to make this problem go away.

Feel free to call us on 01425 600129 for clarification on any of the above or for bankruptcy help.

Bankruptcy Positive Change Solutions

The end of a negative struggle is a positive!

All things end badly or they wouldn’t end!

Bankruptcy positive change solutions = Substituting a negative set of financial problems and replacing them with a positive scenario even if that means starting all over again.

Coming to terms with and resolving or refreshing what would be described as a negative struggle is a good thing.

Removing a problem that is holding you back is a good thing. Bankruptcy itself allows an individual to rid themselves on unmanageable debt and become debt free.

Bankruptcy Positive Change Solutions

Bankruptcy represents a fresh start and a new beginning. Since the enterprise Act 2002 the actual term of bankruptcy was reduced from 3 years to 1 year.

Once the bankruptcy has started there is no reason to keep looking back. The time has then come to keep your body and your head facing forward. The options available to you will be to continue with your profession, or become self employed and start your own business as a Sole Trader.

We are all human after all. Even if certain human beings think that they are perfect and can do no wrong and who think they are always right. Those that follow directions and instructions and obey the law in every way certainly does not make them perfect. These people are generally highly stressed human beings.

Getting through life isn’t always going to be easy. There will always be a problem to solve but ultimately the more problems that we solve then the easier it is to deal with and manage problems that

Bankruptcy can be positive because it represents the end of what has become a negative struggle, something that might have been going on for five or even ten years.

Negative struggles can, and are, for most people all consuming.

The fear of the unknown, fear of loss and change are what will  stop people from making the right decision.

After nearly 20 years in this industry, providing assistance to people seeking direction and a positive solution its fair to say that making the right decision for some people is a tough one.

For the people out there who are facing difficult futures unless they do something about it, and are hesitant and resistant because they simply don’t understand the implications or aren’t used to planning or re-planning their lives in a way that they and their families can move freely forward.

The fear of change can mean so much that people just want to bob along even if they know they are heading in the wrong direction.

People get used to negativity.

They get so used to negativity and not having anything much positive going on that the thought of a future with less problems and things to complain about is a daunting thought.

bankruptcy positive change solutions

Or it may be that the person who is facing the difficulty is actually surrounded by negative people or people that don’t want that person to find a solution because it may be that its the position of fear and the unknown that is actually holding them together. We all know that there are a lot of people in controlling relationships or friendships and this means that one has the upper or ruling hand over the other.

A typical example would be a man or woman age group 30’s plus, married, or living together with children or without, paying a mortgage after saving up or securing the deposit monies and acquisition costs of buying a home, doing what they feel is right and correct such as making children and raising a family.

Or they are living in rented accommodation living day to day but in a way that over a period of time often years their living costs are greater than their incomes so invariably they spend more than they earn and aren’t able to play catch up with the payments.  therefore at some point they will reach the end of the line.

During this negative period there could very well be a mental breakdown or deterioration of they happy state where actually they start feeling depressed and end up going to their doctor for help and assistance that they will find a magic tablet that will somehow make everything better. Of course this doesn’t work because all that happens is the real problems are masked over and not really cured or solved.

As long as they bring in enough money weekly or monthly to maintain costs and be able to pay for the not only essential needs but the perceived needs of the family unit, then its probably as good as it gets. But there are dangers with this outlook in modern day living because they are doing their best or what they feel is their best in what is perceived as a way of getting through an impossible situation.

Emotional reactions and love or what is perceived as love can often be a barrier for making the right decisions.

Whether we are talking about a single mother raising her children the best she can without the support mechanism of the man. Or the other way around where the man is a single and the woman has left and he is left raiding and caring for his family. We must try to see how and  why bankruptcy can be positive – make a positive change




Is an IVA better than a bankruptcy?

The only way to truly answer to Is an IVA better than a bankruptcy? would be to look at the failure rates of IVAs after the first 18 months.

They sound great at the outset but a significant number fail in the first two years. More importantly, the IVA companies that arrange these debt solutions are motivated to sell IVAs ahead of anything else as there is more profit involved, and this biases their presentation accordingly.

Individual Voluntary Arrangements and bankruptcy are both legally contracted debt solutions, yet are essentially very different. The prime function of an IVA is to protect assets such as properties and businesses, which might otherwise be lost in bankruptcy. Bankruptcy, on the other hand, is ideal for those who do not have significant assets, are living in rented and holding down everyday jobs like the rest of us. They both harm your credit rating, but it is a fact that discharged bankrupts can now get mortgages within three years (other forms of credit within 18 months), whereas there is no chance of this happening for those tied into IVAs for 5 – 7 years (many IVAs extend well beyond 60 months).

The big selling point for IVAs is that part of the debt will be written off ‘using Government legislation’ based on affordability, yet any apparent savings are soon eroded by the fee structures.

We speak to  dissatisfied IVA holders who all complain about the same things : once the IVA is set up it is almost impossible to speak to anybody from the company; there are frequent ‘reviews’ and requests for more money, and there is very little understanding if anything goes wrong with your finances (illness, redundancies, etc.).

Another complaint is that nothing appears to be paid off the debt for the first two years. The reason for this is that you are paying off the set up fees during this period and not a penny goes to the creditors. Is an IVA better than bankruptcy is a question often asked. The answer each and every time will be determined by……..”What have you got to lose’.

We could talk considerably about the injustices of IVA companies that have set up arrangements for those who should have been recommended bankruptcy at the outset, but what it all really comes down to is whether you have any assets or not. And if you don’t, you certainly wouldn’t want to be tied into an IVA for five years.

Feel free to call us with any questions or for bankruptcy help on 01425 600129, we are here to help. Most of our staff are from the financial services sector and have the experience to get you best result every time.

Is My Partner’s Income Taken into Account in Bankruptcy

Many of the people we speak to are surprised when we ask about total household income. 'Is my partner's income taken into account in bankruptcy ? ' is often a question asked. Especially when only one party is going bankrupt. But believe us when we tell you that getting the Income and Expenditure right is really important, as this will decide whether you end up in an Income Payments Agreement (IPA) for the next 36 months, or not.

It's what your partner contributes and not what they earn that is the key issue
For this reason, you need to know we need to know what your partner contributes towards household income, rather than what he or she earns. It could be, for example, that your partner takes home £1200 per month, but by the time his / her car finance, credit cards and other expenses (child support, for example) has been deducted, only £700 is available and this is the figure we are talking about - what they contribute towards the bills and food.

This would not apply in cases where both parties are going bankrupt - here we would need to know the full take home pay of both parties. It's not all bad news, though as now we can factor in allowances for two people instead of one and that makes a big difference.

Is my partner's income taken into account in bankruptcy

People thinking about doing their own bankruptcy would do well to seek advice when attempting the Income and Expenditure as a bodge job could cost you dearly. Even an IPA of £80 per month works out to just under £3000 over a 36 month period, something you could well do without. Our experts know all the allowances and will guide you through this.

Feel free to call us with any questions relating to Is my partner's income taken into account in bankruptcy  or for bankruptcy help on 01425 600129, we are here to help. Alternatively, post a question on our home page and we'll help you that way. Please note, Court appearances are no longer required for bankruptcy and Bailiffs do not form part of the process.

When is My Name removed from the Insolvency Register?

We are often asked ‘When is my name removed from the Insolvency Register?’

Your bankruptcy is completely removed from the Insolvency Register 15 months from the date you entered into bankruptcy, or 3 months after discharge.

The Insolvency Register can be found using a google search and is a public record of all those persons currently involved in Debt Relief Orders, Individual Voluntary Arrangements and Bankruptcies i.e. court sanctioned arrangements.

You are automatically discharged after 12 months and in some cases people are even discharged before the end of the 12 month period.

When is My Name Removed Insolvency Register

These include persons whose circumstances are unlikely to change viz. pensioners, people on DLA, etc. It is important that you obtain a certificate of discharge when you have completed the 12 month period and submit copies to the three main credit reference agencies, as there can be delays before information is updated. There is a charge for the discharge certificate, but it’s worth paying.

Bankruptcy UK specialises in taking people through the bankruptcy process in a straightforward manner. We will assess your circumstances then submit the bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for a chat about your circumstances on 01425 600129.

Will I still have to pay Council Tax arrears if Bankrupt?

Council Tax may generally be included in a bankruptcy, but there might be complications if a Liability Order has already been issued and an arrangement with Bailiffs has been made e.g. £150 x 6 payments. Under these circumstances, you might be obliged to complete the arrangement despite having gone bankrupt and the Official Receiver might not intervene.

It is therefore very important that you make an arrangement with your Council before they issue a Liability Order. A Liability Order is the seventh and final stage a Council will take to recover outstanding council tax. You would have had plenty of notice that trouble is coming and it can be avoided by simply offering a low, affordable amount.

Bankruptcy UK specialises in taking people through the bankruptcy process in a straightforward manner. We will assess your circumstances then submit the bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for a chat about your circumstances on 01425 600129.

How do I apply for bankruptcy? I have around £25k debt and mortgage arrears

The former Debtors Petition and Statement of Affairs have since been replaced by an 8-part online form which you can access by entering ‘Apply for Bankruptcy’ into Google and following the prompts on the Insolvency Service’s website. You will initially be asked to provide some basic information, at which point a 12-digit security code will be emailed to you. Once you have this, you may proceed.

Care needs to be taken when completing the income and expenditure section as, if it is found that there is surplus income, you could be placed in an Income Payments Agreement (IPA) for 36 months. We were very surprised to find the Insolvency Service generously inviting us to claim costs for things like hairdressing, social clubs, alcohol, tobacco, entertainment, newspapers, magazines and gifts – but guess what? These things are not allowed!

We counted around 18 separate items that would definitely not be allowed and if you happened to include any of these in your income and expenditure, you would have unwittingly painted yourself into a corner. If you consider that an IPA of £250pm will cost £9000 over three years, we recommend you speak to our advisors. We are very aware of the importance of the income and expenditure and know exactly what may be claimed and for what amount.

Please note that entering into bankruptcy will not directly affect your property (you mentioned arrears) but if you intend giving up the property, any shortfall will also be included in the bankruptcy. We have found cases where people are in hopeless negative equity and really struggling with high monthly payments on mortgages / secured loans – in these cases, it might be best to surrender the property and go into rented.

Bankruptcy UK will assess your circumstances, prepare the necessary paperwork, then submit the bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129.

If I am an accountant how will bankruptcy affect me?

I am an accountant thinking of going bankrupt – how will it affect me? I have personal guarantees that I cannot meet. I am a partner of a licensed practice and looking for help with this debt. What should I do?

If you have unmanageable debt and need a fresh start, bankruptcy could be the answer. You didn’t mention whether you are a Director of the company; if you are, you will need to step down from that role, but can reapply after 12 months. Likewise, there may be restrictions on practicing as a Chartered Accountant during the same period, though lesser roles might not be a problem.

We would also need to establish what assets you have and whether these might be under threat. For example, if you owned a property with negligible equity it wouldn’t be under any immediate threat. You could argue, however, that even if there was, say, £30,000 equity and the personal guarantees totalled £150,000, it might still be in your best interests to proceed. Until we have a complete picture we can’t say for certain and we therefore ask you to call in when you have time.

Bankruptcy UK specialises in taking people through the bankruptcy process and submitting bankruptcy applications online. Court appearances are no longer required for bankruptcy. Call us for an informal chat about your circumstances on 01425 600129.

Bailiffs | Will Bailiffs remove my furniture if I go bankrupt?


We are often asked the question ‘Will Bailiffs remove my furniture if I go bankrupt?’ The answer is generally ‘no’ but people’s circumstances can vary enormously. However, if you have high value items such as vehicles, antiques and other assets which are known to your creditors then there is a risk that some of these items might be attached.

We often hear people saying that they’ve received conflicting information about two specific things in bankruptcy: cars and household goods. There is an official stance on this as laid out in the Insolvency Service’s Technical Manual and this decides whether the value of cars that may be kept and whether household goods are safe in bankruptcy.

At the risk of sounding bookish, paragraph 30.145 on the Insolvency Service’s Technical Manual (you can find this online) clearly states that the prescribed limit for cars is £1000, provided they are needed for work or for care work. However, this figure is not set in stone and is often stretched according to circumstances. For example, a Senior Manager or company rep might need a slightly better car in terms of company policy and the Insolvency Service can’t make any decision that might result in the loss of a job.

Regarding household goods, these are safe in bankruptcy. paragraph 31.10.11 on the Insolvency Service’s Technical Manual says, and we quote: Such clothing, bedding, furniture or household equipment and provisions as are necessary for satisfying the basic domestic needs of the bankrupt and his/her family do not form part of the bankrupt’s estate. Amazingly, we’ve heard about Debt Advisers saying that household goods are attached in bankruptcy, but nobody comes to the house at any point in bankruptcy.

Bankruptcy UK has been helping people with bankruptcy since 1998 and will guide you through the process step by step. We will avoid jargon and confirm all discussions by email within 30 minutes. Call us for a chat about your circumstances on 01425 600129.

Bankruptcy UK

Bankruptcy UK