Our agents are on hand to speak to you 7 days a week.
GET IN TOUCH WITH US NOW!     01425 600129     enquiries@bankruptcy.co.uk
Bankruptcy FAQs Archives - Bankruptcy UK

OUR TEAM ARE AVAILABLE NOW TO HELP WITH COMPLEX INSOLVENCY ISSUES

 

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. 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.

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.

UNSECURED BUSINESS LOANS

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.

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

Bailiffs

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 will guide you seamlessly through the bankruptcy process as we have been doing since 1998. We will avoid jargon and confirm all discussions by email within 30 minutes. Call us for a chat about your circumstances on 01425 600129.

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

 

 

 

 

 

 

How long will my IVA stay on my credit report

All debts remain on your credit file for six years, which can be frustrating for those who have recently completed a 5 – 6 year IVA, as the ‘Footprint’ stays there for several more years. There are so many people who opt for IVAs ahead of bankruptcy, despite the fact that they have no assets such as property or businesses – the purpose of an IVA is to protect assets which might otherwise be lost in bankruptcy. This results in them being stuck in a completely unnecessary IVA for at least five years, when they could be in and out of bankruptcy in 12 months or less.

While on the subject, people should note that properties in negative equity are not lost in bankruptcy, provided mortgage payments are maintained. It should also be pointed out that if a property is involved in an IVA, it will run for six years and not five. This is because there is a so-called four year re-mortgage clause in these agreements which obliges the individual to release funds from their properties after four years. Since this will never be possible because of an impaired credit rating, the IVA remains in place for a sixth year.

It still troubles us how many ordinary people have been placed in IVAs when bankruptcy was  the correct solution. People in rented and holding down everyday jobs have no place in an IVA but this is big business for the IVA companies and they will place virtually anybody in one of these wretched arrangements.

Bankruptcy UK has been helping people with insolvency since 1998 and has the experience to get you the right result every time. We will avoid jargon and confirm all discussions by email within 30 minutes. Call us for a chat about your circumstances on 01425 600129.

 

When is my name removed from the Insolvency Register?

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 (Google it) 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.

For those that for whatever reason have entered bankruptcy either voluntarily or involuntarily and have failed to cooperate with the Insolvency Service or trustee then there is a strong chance that they will have what is known as a bankruptcy restriction order against them. This can happen sometimes for innocent reasons such as moving home and not receiving letters from the Insolvency service. Or simply because there is sensitive information that is being requested that people either really don’t wan to answer or haven’t got or don’t know how to get information that is being requested. there is also the people who are just afraid and go into their shell and cant face what needs to be dealt with. Or they simply couldn’t find someone to assist them.

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 has been helping people with insolvency 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.

Council Tax Arrears Bankruptcy-Need Help? Call

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

Council Tax arrears bankruptcy? Council tax arrears 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.

Its a fact that quite a high percentage of bankruptcy orders are granted from applications that are from local government in relation to council tax arrears bankruptcy.

People often don’t seem to realise that if they are a homeowner and they are about to be made bankrupt for a few thousand pounds worth of council tax then it is going to have a damaging and debt escalation to a level possibly never seen before that will appear unfair and will result in action to obtain an order of sale against the house

If you are a bankrupt homeowner because of a council tax debt then don’t delay ad simply call us today. If you have significant equity in your property and have been made bankrupt or are under threat of bankruptcy then you should get immediate help to save time and escalating costs.

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 has been helping people with insolvency 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.

How Do I Apply For Bankruptcy- Call

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 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 an informal chat on 01425 600129.

 

 

Bankruptcy UK

Bankruptcy UK