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OUR TEAM ARE AVAILABLE NOW TO HELP WITH COMPLEX INSOLVENCY ISSUES

 

Will bankruptcy stop a wage garnishment?

Yes it will as the online application asks if there are any attachment of earnings orders in force against you. A garnishment is a court order requiring your employer to withhold a certain amount of your wages and send it directly to the person or institution to whom the money is owed, until the debt is settled.

The Official Receiver will rapidly pull the plug on all such orders as preferred creditors are not allowed in bankruptcy. A more cynical point of view might be that the existence of a garnishment might threaten the OR’s ability to place you into an Income Payments Agreement (IPA).

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

What does a ‘Default’ on my credit file mean?

Accounts generally go into default once three missed payments are recorded on a credit file. If you request a copy of your credit file, you will notice a row of zeroes and ones running in a line next to the name of the creditor. Each zero means a successful monthly payment, while the ones mean a missed payment.

Needless to say, a string of ones is bad news for your credit rating and every effort should be made to make up the arrears. Fortunately, the lenders regularly update our credit files with details of payments, but it might still be an idea to get some type of acknowledgement from a lender once the arrears are made up and submit this to Experian and Equifax.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

What exactly does ‘Statute Barred Debt’ mean?

Statute Barred Debt is debt that might have become unenforceable if a creditor has not gone to court or contacted you within the time limit set out in the Limitations Act 1980 i.e. in England and Wales the time limit is six years. We need to point out, however, that while the time limit for unsecured debt is six years, it increases to 12 years for debt associated with mortgage shortfalls.

The key points for deciding whether or not unsecured debt is statute barred are:

  • You haven’t made a payment to the debt for more than six years
  • You haven’t had any contact from the creditor during this time
  • The creditor has not applied to a court for a CCJ
  • Even if you have had some contact but have not acknowledged the debt in writing, it is still statute barred
  • Please note, if the debt has been sold the clock does not reset to the date of the new acquisition, it remains the original date

However, don’t believe for a minute that this will stop debt collectors which have bought the debt from trying it on, knowing full well that few people know their rights. The best thing to do is to simply ignore the calls / letters. It is very risky challenging the debt collector in writing as you might be unwittingly acknowledging the debt. Although unlikely, if you were to receive CCJ documentation from Northampton County Court for a CCJ, it should be challenged immediately if it falls into the above criteria.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

 

Suspended bankruptcy order

I went personally bankrupting 2006 and petitioned for my own bankruptcy. I was living in rented accommodation at the time and attended an interview at the Insolvency Service office with the official receiver. After my lease ran out on my property I wrote to the official receiver informing them of my new address. I didn’t hear anything from them and in March 2007 it appears that an order was made for my bankruptcy to be indefinitely suspended. In 2012 I thought I had been discharged as I was told by the insolvency service helpline that bankruptcy is automatically discharged after 12 months but if I wanted a certificate then I had to apply to the county court where the bankruptcy was granted and i would have to pay a fee. In 2012 I started a limited company and i have just been contacted by the Official Receiver saying that I am still bankrupt and they have sent me a whole load of forms relating to where I am financially in my life now and that statutory interest will be added at 8% since 2006 on the creditor amount in 2006 which was 380k.

What can I do?

This is quite common and sometime the officers working at the Insolvency service miss crucial communications such as changes of address. There are a number of options that you can try but first and foremost you will need to see the order that was made in 2007 and see if you can provide them with what they wanted then. Remember they will be motivated to squeeze money out of you if they can. If you have the budget then it is definitely worthwhile seeking a lawyer to fight your corner for you.

Bankruptcy UK offers bankruptcy help across the board, including dealing with creditors like HMRC, completing the all-important Income and Expenditure and professional submission of the application online. Call us on 01425 600129 or 0800 5977 977 for a chat about your circumstances.

Bankruptcy Register

The Bankruptcy or Insolvency Register is a public record of all court-approved insolvency arrangements, including bankruptcy, Individual Voluntary Arrangements (IVAs) and Debt Relief Orders.

People who enter into the protection of bankruptcy can expect to appear on the bankruptcy register for 15 months, whereupon their name is removed. This information is in the public domain – google ‘Insolvency Register’ – which means that anybody can search for people in these court sanctioned debt arrangements, including bankruptcy.

Feel free to call us for a confidential chat about your circumstances on 01425 600129 or 0800 5977 977 and we will talk you through your options and how we can help you. We offer an a – z service, including the completion of all the forms and the all-important income and expenditure.

Bankruptcy Fraud

Bankruptcy fraud is viewed as very serious by the Official Receiver / Insolvency Service and can result in either an extended Bankruptcy Restriction or a prison sentence, or both.

The most common form of Bankruptcy fraud is where people try to hide assets, usually by not declaring foreign property interests and closing / hiding bank accounts. By signing the declaration on the bankruptcy forms, people are obliged to disclose all interests and failure to do so will result in an investigation and possible prosecution.

A Bankruptcy Restriction will result in a person not being discharged from bankruptcy for a number of years and all of the complications this brings.

Feel free to call us for a confidential chat about your circumstances on 01425 600129 or 0800 5977 977 and we will talk you through your options and how we can help you. We offer an a – z service, including the completion of all the forms and the all-important income and expenditure.

Bankruptcy Discharge

A bankrupt may be discharged (freed from obligations under the bankruptcy order) in 12 months or less from the date of the bankruptcy order. Discharge releases the bankrupt from most of the debts owed at the date of the bankruptcy order. Exceptions include debts arising from fraud, certain crimes and fines. Certain other debts such as damages or personal injury or money owed under family proceedings (such as maintenance) will be released only if the Court agrees. The good news, however, is that in 99% of cases you will be debt free in one year or less.

Release as Trustee – what does this mean?

Please can you tell me why I have received a ‘Release as Trustee’ letter, along with a “Statement showing Position of Estate at Date of Application for Release when I was discharged in December, 2012?

Without any further information, we have a feeling that you might have had a property in negative equity at the time you entered bankruptcy. The Official Receiver or Trustee reviews the situation after 27 months to establish whether there is equity in the property at that time. If there is no change to the equity issue, he releases his interest and lifts any restrictions on the title deeds.

Feel free to call us with any further questions or for bankruptcy help on 01425 600129 or 07479 739139.

I’ve been issued with a statutory demand what does this mean?

A statutory demand is a prelude to bankruptcy – a distinct shot across the bows warning you that bankruptcy will follow if you take no action. Some companies use this to ‘shake up’ people, but statutory demands from banks and (particularly) HMRC should be taken seriously.

You have 21 days to respond to a statutory demand, but if  you disagree with the terms you should contact the petitioning creditor immediately (or his agent) to see if can you reach an agreement. It might be that there was an oversight on your part and that you can pay the demand. If not, you will need to make a solid case or the bankruptcy might proceed.

If you do not want to be made bankrupt you could apply for an adjournement which could give you time to raise the required funds to discharge the debt. Be warned though, if you allow the bankruptcy to proceed by indecision, you will lose control of any assets and might find yourself paying an Income Payments Agreement for three years.

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.

Warrant of execution – will bankruptcy stop this?

I have a warrant of execution threatening Bailiff action to remove goods from my house will bankruptcy stop it?

Yes it will, as Bailiff activity is reported on the online bankruptcy application and the Official Receiver will be aware if it. Even so, you would need to take immediate action, as there is a delay between submitting the case online and it being dealt with by the OR. A warrant of execution usually arises when a monthly payment for a County Court Judgement has been missed and County Court sheriffs visit for collection.

If the warrant was for unpaid Council Tax following the issue of a Liability order by the Council, there is some doubt as to whether even a bankruptcy would stop the action. Bailiffs collecting Council Tax arrears are often allowed to continue collecting monthly payments during the 12 month bankruptcy period. However, we will do what we can to help with this.

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.

 

 

Bankruptcy UK

Bankruptcy UK