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Bankruptcy Questions Archives - Page 2 of 24 - Bankruptcy UK

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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The former Debtors Petition and Statement of Affairs have since been replaced by an 8-part online form which you can access by entering ‘Apply for Bankruptcy’ into Google and following the prompts on the Insolvency Service’s website.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.

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.

I owe about £25000 and HMRC won’t give me two years to settle

I owe HMRC money and they will not enter in a payment plan – I also have other bills I cannot pay .. is bankruptcy the answer?

For reasons known only to HMRC, they will only allow 12 months to settle outstanding tax commitments, something which is costing them a fortune. Once someone has declared bankruptcy, all amounts owing are written off and there is no recourse.

Depending on your circumstances i.e. whether you have significant assets or not, bankruptcy may well be the answer. Most of the people we speak to are just everyday folks with a basic income and living in rented, and these are ideal candidates for bankruptcy.

In bankruptcy you may keep any car up the value of £1,000 and you won’t have to close your bank account unless you owe money to the bank concerned. In most cases there is no monthly payment after bankruptcy, but we can establish this for you in a few minutes. If you have a property with no equity it will not be lost in bankruptcy and we’ll explain more about that too.

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

Court Fines and Bankruptcy-Get Help From

Court fines and  bankruptcy

What is the situation with court fines and bankruptcy? If you are considering entering personal bankruptcy then there will almost certainly be questions you will need answering. Questions like what debts can I include in the bankruptcy.   But you cannot include court orders or child maintenance.

This is  provided they are not of a criminal nature. As we say you can include parking fines of any description, including City of London congestion charges, as well as any other civil-orientated fine, but not speeding fines. We have had cases where people have racked up £4,500 worth of City of London parking fines, but it all gets written off. For that matter, you may also include civil settlements and fines as a result of civil suits of most descriptions, in case you were wondering.

bankruptcy forms
bankruptcy forms

Our Bankruptcy UK team provides bankruptcy help and information across the board and takes clients through the bankruptcy planning process as well as the application itself. There are no longer court attendances but the detail is very important when processing these types of information.

Its critical that the application is accurate and honest and remember if you seek to do this yourself then be aware that if you think its OK to leave certain questions out because you don’t want to go into detail then this is a tell tale sign that you are not necessarily being forthcoming with the truth which could in turn lead to further restrictions and interviews until the Insolvency Service. This can be avoided by thinking the answers through and taking enough time to prepare the application.

If you do have fines and are in the process of being contacted and visited by the Sheriffs office or bailiffs then once you have your bankruptcy order then its a good idea to contact them and let them know that you have entered bankruptcy. they can then update their file notes which should avoid unnecessary visits and calls.

Feel free to call us on 01425 600129 for a non obligatory chat about your circumstances.

Do I have to complete a tax return for the year before bankruptcy?

You will not be liable for any tax owing up to and including the date of the bankruptcy. By doing the returns you will at least be able to define exactly how much is owing, but this will be established in due course anyway as the Insolvency Service will write to HMRC for these figures.

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

Why Does my IVA Company Ignore Me?

When I entered into an IVA about 9 months ago my IVA company was ever so helpful, but now I have problems it’s almost impossible to get hold of them. I have left  messages and sent emails, but nobody comes back to me. Why does my IVA company ignore me?

We come across a lot of this and it always seems to be when there’s a problem. IVA companies are notoriously slow in getting back to people, probably because they know it’s just a matter of time before the client realises they should never have entered the IVA in the first place. IVAs are designed to protect assets such as property portfolios and businesses, not for everyday people. If you are in rented and holding down a regular job like the rest of us, bankruptcy is the answer. Amazingly, people on DLA and other benefits are also placed in IVAs when there is absolutely no chance of there being a monthly payment in bankruptcy.

There are reasons for this and it comes down to money. IVA companies pocket the first two year’s contributions for themselves with only a trickle of money going to the creditors. Speaking of which, the original creditors would have long since sold the debt on to debt collectors and it is these companies that eventually receive a fraction of your monthly payment. We often hear people say ‘we entered an IVA because we wanted to repay the debt’ but this is a fallacy. IVAs are a grand illusion much the same as David Copperfield making an elephant disappear on stage.

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

 

 

Bankruptcy UK

Bankruptcy UK