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Bankruptcy FAQs Archives - Page 2 of 38 - Bankruptcy UK

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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 specialises in guiding people through the bankruptcy process in a no-nonsense, straightforward manner. We will assess your circumstances then submit the bankruptcy application online. call us for an informal 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The former Debtors Petition and Statement of Affairs have since been replaced by an 8-part online form which you can access by entering ‘Apply for Bankruptcy’ into Google and following the prompts on the Insolvency Service’s website.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.

Accountant Bankruptcy | I am an accountant how will bankruptcy affect me?

I am an accountant how will bankruptcy affect me?

I am an accountant thinking of entering bankruptcy – 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?

You have to think very carefully about these decisions. The answers are variable depending on circumstances. For example are you at the end of your career? because if you are in the middle of your career then bankruptcy would be the last thing you would want to do.

If you have unmanageable debt and need a fresh start, bankruptcy could be the answer buy as we say..Circumstances, and if this is going to wreck your future then avoid it if you can.

If you think that bankruptcy is the option and you are a director of a company you will need to step down from directorship by resigning and informing companies house that you have ceased trading.  Likewise, there may be restrictions on practicing as a Chartered Accountant during the same period, though lesser roles might not be a problem.

 

You 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 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.

 

Bankruptcy Options | Stay in control with your options

Bankruptcy Options

Is bankruptcy really the only way out?

Ordinary people often don’t understand the language used in insolvency or bankruptcy matters. People are afraid of the letters and are put off by the fact that they don’t actually think they can do anything about it.

We are expert Insolvency problem solvers and the first task conducted by us to to ensure that the person grasps the meaning of what is exactly happening and the implications if they fail to respond properly to action that is being taken against them.

Bankruptcy options
Bankruptcy options

Here is one example of the questions we receive. Please be sure to look through our other bankruptcy questions.

My husband has divorced me from his finances. I have been dependant on him for the last 3 years as I am a live at home mother. When I met him I had a £50,000 liability to Northern Rock for a 120% mortgaged property that was repossessed and I have been repaying the shortfall for the past 4 years.  I have two other debts which are credit cards totalling £7,000.00. I am just wondering if there is any other option.

We could try a full and final settlement with Northern Rock and then obtain a payment holiday with the possibility of freezing the interest payments and reducing the payment down to £1.00 per month for a period of 6 months.

This would give you the opportunity to get yourself repositioned and placed where you have an income and can manage your debts independently without 3rd party assistance. In many instances we are able to negotiate positive solutions with lenders that people generally are not aware of.

However, this will require you coming up with some money and if this is not possible bankruptcy is without doubt the best solution, as the amounts involved are sizeable. A plus point is that you will not have to attend court as everything is processed online and over the phone.

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.

Will I have a monthly payment once bankrupt

Will I have a monthly payment once bankrupt – Income Payments Agreements

Some people are so intent with forging ahead with their bankruptcy that they fail to pay attention to the Income and Expenditure section of the bankruptcy application.

This is arguably the most important part of the service we offer, as it is important that you claim the maximum allowable limit for all expenses, to avoid surplus income. If it is found that there is surplus income, you may well be involved in an Income Payment agreement for the next 36 months. To put this into perspective, even a £50 payment equates to £1800 over three years.

We know the limits and have an outstanding track record in helping people avoid having to pay anything after bankruptcy, known as an Income Payments Arrangement or IPA. If you are placed in an IPA it will be for 36 months and this can amount to a lot of money over the period.

The Insolvency Service has made things tough for those attempting their own bankruptcy, as all manner of non-allowable expenses have been included on the online application. For example, we were astonished to see things like tobacco, alcohol, entertainment and club subscriptions included in the form, as we know these are not allowed.

In fact, we counted around 15 of these non-allowable expenses and if you had included any of them in reducing your surplus income to zero, you would find yourself involved in an Income Payments Agreement. We have a few tricks of our own for avoiding excessive IPAs so call us if you need help.

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.

Will the Official Receiver tell my job I’m bankrupt?

We are often asked the question “Will the Official Receiver tell my job I’m bankrupt? The answer is …Not directly, but if you went bankrupt earlier in the year (February / March) your company would almost certainly not be aware of it. The reason for this is that your tax code would not change to NT as is usually the case in bankruptcy, as there would be no time to set up the processes.

Its often very difficult for hard working honest people to overcome what they really consider to be a shameful personal experience such as bankruptcy. The reality is that sometimes a bankruptcy is essential in order to stabilise out of control financial circumstances. Really you shouldn’t let opinions of others stand in the way of something you need. Otherwise you are risking further personal suffering when all you are looking for is a fresh start.

Will the Official Receiver tell my job I'm bankrupt?

If you went bankrupt after April 6th, the Insolvency Service would advise HMRC to instruct the company you work for to change your tax code to ‘NT’ or no tax (without providing a reason as to why). The tax you would have paid is redirected to a different source and used to offset administration costs and to distribute among the creditors. This arrangement ceases at the end of the tax year and your tax code reverts to whatever it was.

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.

Apply bankruptcy online

Apply bankruptcy online ? So you’re thinking about doing your own bankruptcy .. read this first

With the advent of being able to apply for bankruptcy online online almost seems like fun to apply for bankruptcy online these days, but the process is fraught with hidden dangers. We won’t go as far as saying the Insolvency Service has deliberately laid traps for us all to blunder in to, but after completing around a hundred of these applications we urge caution before proceeding.

The online application comprises eight sections and it all starts off harmlessly enough, but where it becomes really tricky is the completion of the income and expenditure. Bearing in mind that this will decide whether you will be placed in an Income Payments Agreement (IPA) for the next three years or not, you’d best answer all the questions correctly.

Here, the Insolvency Service is 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 £150pm will cost £5400 over three years, we recommend you seek professional assistance. We are especially aware of the importance of the income and expenditure and know exactly what may be claimed and for what amount.

Another area where we experienced difficulty was in loading the various creditors. In one case, we wasted half an hour trying to figure out how to load ‘Intelligent Finance’ which was being repeatedly rejected. It turned out that you have to initially enter ‘Intelligent’ without the ‘Finance’ and it then gives you options – talk about obtuse!

Bankruptcy UK offers bankruptcy help for those who might be unfamiliar with the jargon and procedures involved in submitting an application online. We will take care of everything and submit your application to your best advantage.

Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for an informal chat about your circumstances.

How Can I leave My IVA | Call Today To Discuss Options

How can I leave my IVA

I’ve been given the runaround by my IVA company once too often and I want out. When I started they told me the payments would be £140 per month, but now they want to increase the payments to £220 pm and it’s just too much. I’ve still got four years to go and I can’t see any end in sight.

If you have taken the decision to leave your IVA and enter into bankruptcy, there is a sequence of events that needs to take place and we can help you through the process. Having taken almost 4,000 people through the process, there is not much that we don’t know and we are confident of the outcome.

One of the biggest advantages of leaving an IVA in favour of bankruptcy is that your income and expenditure is reassessed under the more lenient bankruptcy criteria and there is rarely a monthly payment. The other big advantage, of course, is that bankruptcy only lasts for 12 months and your credit rating rapidly repairs itself once discharged. You can now get a mortgage just 36 months after discharge.

The thing that concerns people most about leaving and entering bankruptcy is the cost ‘how will I be able to afford it?’ It’s simple,  the payments that you were making will be used to fund the cost over a number of months. You need to remember that it will take at least 5-6 months before you receive a letter of termination from the IVA company (required for bankruptcy) and it will be possible to cover all of the costs in this time.

The first thing you need to do is to stop making the IVA payments immediately. If you don’t have the confidence to do this, we will write to the company and advise that you will be exiting the IVA. There are no repercussions for stopping payments; you have the right to leave just as you had the right to enter into it in the first place. It will not result in any Bailiff or Debt Collector activity.

Once you have missed three payments you will receive a letter of default and if this is ignored, the IVA company will approach the creditors with a view to terminating the agreement 6-8 weeks later. Ironically, despite going through the process of leaving the IVA, it will continue to protect you from your creditors until such time as the IVA is terminated.

However, this will not be the case once the IVA is terminated and unless an alternate course of action is taken – such as bankruptcy – you will be contacted again by creditors and debt collectors. Bankruptcy is applied for online these days; you no longer have to attend court and feel embarrassed, so take the plunge and give us a call.

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.

Online Bankruptcy Service

Online Bankruptcy Service

At Bankruptcy UK we will quickly provide a solution for your particular circumstances. Although we do not offer direct advice, we will provide you with more than enough information to make an informed decision.

It is our view that people often make better decisions when presented with impartial information, rather than being told what to do. After all, many of us would hardly have taken financial products had we been given all the information we required upfront. The truth is many of these financial services were sold by advisers based solely on what was most profitable for the company and not what was in the best interests of the client.

Bankruptcy.co.uk will assist all parties, from private individuals to self employed sole traders and business owners. Unlike other debt solution providers, we provide assistance across the board and are not restricted to any particular part of the market.

Due to regulation changes that took place on 6th April 2016 you no longer have to attend court for bankruptcy. The bankruptcy process is now conducted online. If you are looking for help and assistance or simply want some information, call our helpline.

If you cannot afford the bankruptcy fees, we can provide you with access to 48 charities and businesses that could provide you with financial assistance.

Our online bankruptcy service will relieve you of the pressure of having to tackle the online application, which in many cases is designed to trick the applicant. Remember, one of the objectives of the Official Receiver is to place you in an Income Payments Agreement and mistakes made on the application – and particularly the income and expenditure – could cost you dearly.

Bankruptcy UK offers bankruptcy help across the board and will submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for a chat about your circumstances.

Help with Bankruptcy Fees

At Bankruptcy UK we do our best to help those people who are looking for a solution to their debt problems. We can provide you with links to 48 debt help charities which in many cases will help with these costs.

Many people delay calling us for help as they can’t find the £680 bankruptcy fee. We have found that most individuals have been conditioned to being in some kind of debt solution. It may be that the first step was a debt management plan, followed by an IVA, but at bankruptcy.co.uk we see through it all.

The Insolvency Industry has seen many regulation changes over the last 10-15 years following the Insolvency Act 1986 when the industry first became regulated. But the bottom line is that there has been an abuse of process that has been applied by many companies engaged in dealing with peoples debts. Knowing who you can trust in this sector can be hit and miss.

Only you, the client, can make a decision based on whether you feel an adviser has been ‘upfront’ with you and provided enough impartial information to make an informed decision.

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Our services consist of:

1. Pre Bankruptcy Consultation. This is a series of questions and answers designed to help us understand your circumstances and whether bankruptcy or some other debt solution is the way forward.
2. Fully detailed Income Expenditure and history and background, which provides us with a detailed account of who you are and how you have ended up in your present position.
3. You will be provided with access to all the private organisations that provide the fees to enable a person to enter bankruptcy but who simply can’t afford the fees.

If you are looking for help with bankruptcy fees then call our information helpline 7 days a week to speak with a specialist debt consultant.

Bank Workers Charity – www.bwcharity.org.uk.
British Boxing Board of Control charitable Trust – www.bbbofc.com.
Ben – www.ben.org.uk.
British Gas – https://bget.app.charisgrants.com.
Boots Benevolent Fund – opencharities.org/charities/1046559.
Bordan Charity – www.blhcharity.co.uk.
Charis – www.charisgrants.com.
Charity for Civil Servants – www.foryoubyyou.org.uk.
Chesham Sick Poor Fund – www.charitychoice.co.uk/chesham-sick-poor-fund-
166223.
Dibs charitable trust – Fax: 0148 471 8647.
Eaton fund – www.eaton-fund.co.uk.
East Surrey Domestic Abuse Services – www.esdas.org.uk.
EDF Energy Trust Fund – www.edfenergytrust.org.uk.
Electrical Industries Charity – www.electricalcharity.org.
Elizabeth Finn – www.turn2us.org.uk/default.aspx.
Griffin Club – www.charitychoice.co.uk/the-griffin-club-55607.
Grocery Aid – www.groceryaid.org.uk.
Hair and Beauty Benevolent Fund – www.habb.org.
Hospitality Action – www.hospitalityaction.org.uk.
Iver Heath Sick Poor Fund –
www.turn2us.org.uk/charities/i/the_iver_heath_sick_poor_fund.aspx.
Joseph Rowntree Foundation – www.jrf.org.uk.
Lions Clubs – lionsclubs.co.
Lighthouse Benevolent Fund (construction industry and related trades) –
www.lighthouseclub.org/p/benevolent-fund.
Matthew Trust (mental health) – www.matthewtrust.org/master.htm.
Miners Benevolent Fund – ciswo.org.
Perennial (Horticulture) – www.perennial.org.uk.
Railway Benefit fund – railwaybenefitfund.org.uk.
Rainy Day Trust – www.rainydaytrust.org.uk.
Retail Trust – www.retailtrust.org.uk.
Roland Hill Fund – www.rowlandhillfund.org.
Rope Trust – www.rope.org.uk.
Royal British Legion (and SSAFA) – www.britishlegion.org.uk.
Sail – sailine.org.uk.
Society for the assistance of Ladies in Reduced circumstances –
www.salrc.org.uk.
Southern Water – www.southernwater.co.uk.
Thames Water – www.thameswater.co.uk.
Unison – www.unison.org.uk/.
United Utilities – www.unitedutilities.com.
Vicar’s Relief Fund – charity.stmartin-in-the-fields.org/grants.
Watford Health Trust (residents of Borough of Watford) –
www.turn2us.org.uk/charities/w/the_watford_health_trust.aspx.
Hospitality Action – www.hospitalityaction.org.uk.

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.

 

 

 

Bankruptcy UK

Bankruptcy UK