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For those considering entering bankruptcy, whether from a failed voluntary arrangement, debt management plan, or simply accepting that a debt situation is unrecoverable then we offer a Pre Bankruptcy Consultation in order that you can speak with an expert who will help you to fully understand the process and who can provide you with information that allows you to fully understand the process you are considering entering.

It is important that people know what they are doing. We see many instances where people end up in very awkward situations mainly because they have never really understood what is happening and what the consequences of the process entail.

Its no different to if you were going on a trip where you need a guide that can show you the way and make sure that the process is as easy for you as possible. Our Pre and Post Bankruptcy consultation allows you to get answers to the very important questions you will undoubtably have.

Depending on whether or not you actually have any realisable assets left at the time you enter bankruptcy or whether you have tasks to complete pre entering the bankruptcy process. We can assist in prioritising what needs to be done and experience tells us that a client who knows what they have to do and is focussed on completing outstanding tasks are the clients that we can help. Our UK office is located in Bournemouth and for any clients that feel they need a face to face consultation then we can offer a face to face consultation at our offices.

We are easy to contact. Either call us directly or request a call back request.


bankruptcy-solicitorIVA Payments


I’m thinking of abandoning my IVA. I am two and a half years into an IVA and wondering if bankruptcy might have been a better solution. My total debt is £35,000 from loans and credit cards. My only asset is a car worth about £800 and I live in rented accommodation.

My IVA payments take into account total household income despite the debts having nothing to do with my partner, I had them long before meeting him. I have to pay 50% of household expenses, but my IVA payments company says he should pay more, as he earns more. How can this be right, seeing they aren’t even his debts?

Although it’s true that total household income is taken into account when assessing affordability, it should only be what he contributes to the household that should be considered and not his entire income.

Therefore, if he earns £1200 per month but has personal expenses of £400 (loans, credit cards, etc), then only £800 should be considered. The IVA company is almost certainly aware of this, but will milk the situation for all it’s worth as this is their income – don’t believe for a minute that your payment is going to the creditors.

However, what concerns us more than anything is why you are in an IVA in the first place, as you have no assets. You will definitely keep the car and the rental isn’t under threat. IVA companies are ruthless exploiters of people’s fear of bankruptcy and rarely, if ever, fully explain both options when approached.

The first 20 payments of an IVA go directly into the IVA companies’ pockets and not a penny goes to the creditors. In fact, in most cases, the original creditors would have long since sold the debt on to third party debt collectors and these are the people who will eventually receive a trickle of money from the IVA company. Our speciality is taking people out of IVAs and into the protection of bankruptcy, so call us for a chat if you need assistance.

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.

My IVA already costs £280pm .. now they want more

I’ve been in an IVA for a year with debts of £27,000 and the IVA Costs are £280pm, which leaves me with absolutely nothing every month. Now my IVA company is saying they got the numbers wrong and want another £70pm. How can this be right?

Precisely, it’s not right. The number of people we speak to who should have been recommended bankruptcy at the outset, is staggering. If you are living in rented and holding down an everyday job like the rest of us, an IVA is of little use to you. That’s because the primary function of an IVA is to protect expensive assets such as properties with equity and businesses. If you don’t have these things you have nothing to lose and bankruptcy is the solution. IVA companies make a mint out of exploiting people’s fear of bankruptcy. Once in an IVA a regular pattern emerges: it is extremely difficult to speak to anybody, there are constant reviews, there are frequent requests for bank statements and more money, and there is no understanding if things go wrong (pay cuts, illness, etc).

Did you know that the first 20 payments of any IVA go directly to the IVA company and not a penny goes to the creditors? The original creditors would have long since sold the debt to third party debt collectors anyway and are out of the picture. So why would you choose to remain in an IVA when you’re not even repaying the people you borrowed from? Many people struggle to meet the high monthly payments of an IVA when bankruptcy should have been recommended in the first place. It is far quicker and much fairer – the courts have no interest in making money out of you.

Yes it will and faster than you think, as Mortgage Brokers have confirmed that it is now possible to arrange mortgages for discharged bankrupts within three years, provided there has been no trouble in the interim.

We guide a lot of people through bankruptcy and have heard of many cases where people are buying furniture on finance just 18 months after discharge, so there’s plenty of hope. To aid recovery, it’s important that you apply for one or two of the ‘credit repair’ credit cards (Capital One, Vanquis, Aqua, etc.) as soon as you are discharged and make regular small purchases and payments in full.

The reason for this is that payments record as a ‘O’ on your credit file i.e. a successful payment and a string of zeroes next to any financial transaction racks up the points on your credit score. Likewise, internet providers such as Virginmedia and BT also have contracts in place which record zeroes for successful payments.

People think that banks will never take a chance on former bankrupts, but we beg to differ. Former bankrupts are completely debt free and are the customers of the future, something the banks are readily embracing.

‘Will my credit rating ever recover if I go bankrupt?’ is just one of the dozens of questions we answer every week here at Bankruptcy UK, but we’ll gladly talk to you in person if you call us on 01425 600125.  We look forward to talking to you.

No you don’t as a limited company is a separate legal entity. The only exception to this is if you have signed Personal Guarantees for company loans, something the banks do more and more often these days. Please note, you will also need to stand down as a Director of any limited companies during the term of the bankruptcy. If you call us we will email these forms to you.

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.

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 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.

With the change in the pension rules, suddenly those over the age of 55 will be eligible to draw down larger sums e.g. £20,000 which could be used to settle debts. Those with long standing debts might view this as a salvation, but what are the side effects of drawing everything down and what else needs to be taken into account?

* The first thing that needs to be considered is the debt itself. How old is it and is it still enforceable? Any debt over six years old might be ‘Statute Barred’ under the Limitations Act 1980 – covered elsewhere on this website – and this needs to be investigated, perhaps by a visit to your local CAB.

* You will have to pay tax on the money you take out of your pension as though it is extra income and this might push you into a higher tax rate – again, this needs to be investigated. Although the first 25% is tax free, you will still be ‘burning away’ a good chunk of your pension in tax and we query the wisdom of doing this.

* You might be exchanging a short term problem for long term deprivation – some people are retired for three decades or more before passing away and loss of income could have a terrible effect in years to come.

* Taking a lump sum might affect your eligibility to certain benefits, especially Housing Benefit under something called ‘Deprivation of Capital’ – we recommend you investigate this thoroughly, as again, it could affect you for many years to come.

Suffice it to say, it is worth taking visiting your local CAB and taking advice before rushing headlong into something that might affect you for the rest of your life.

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.

March 2015 – President Barack Obama has asked administrators to table proposals for including certain types of student debt, especially that loaned by private companies, in bankruptcy. Federal law currently prohibits any student debt, whether from private companies or the US Government from being liquidated in bankruptcy.

Private loans currently make up about 10% of all student loans, with the remaining 90% made by the federal government thus opening the door for student debt made by private lenders to be treated on par with credit card debt and mortgages.

The concern, it seems, is that an increasing number of post graduates are falling behind in payments, while others have defaulted altogether. If the initiative proceeds, private lenders would face stricter federal oversight and rules designed to make them more proactive in reaching out to distressed borrowers and offering better repayment terms.

As it stands, it is not possible to include student debt in a UK bankruptcy.

If you have been in a Debt management Plan for more than 12 months then we can provide you with a full review which will provide you with alternative options to consider. We specialise in bankruptcy solutions. If you have no assets to lose and live in rented accommodation and have struggled with debt that you simply cannot pay back, then we are able to provide assistance with bankruptcy which offers a fresh start and a new beginning.

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 choice should you make when considering an insolvency solution to clear outstanding and unmanageable debts? Making the right decision is critical. IVA companies will encourage you to take out an IVA as this makes them plenty of money, but beware the implications. Do I Clear Debts with an IVA or Bankruptcy?

IVAs can be an sound choice in some circumstances. If, for example, you wished to continue practicing as a Director or you have significant assets, then of course an IVA is suitable. However, a report released by the Insolvency Service indicated that of all the people who had entered into an IVA, less than 29% were given information about the benefits of bankruptcy and whether it might be a more appropriate solution.

IVA companies have now reduced the amount of debt required to qualify for an IVA from £15,000 to just £7,000 in a bid to attract more clientele. This is ridiculous when considering the long term damage this will have on your credit file. An IVA lasts for a minimum of 5 years. Your income is capped and if you earn any more money you are obliged to pay any surplus income to your creditors. This will leave most people on the breadline for years after they took out the arrangement.

Bankruptcy Restriction Order
Bankruptcy Restriction Order

There are always things people can do when looking for help and assistance. It is hard to get these answers when looking for free help and advice, as the reality is that free advice is often the most expensive information you can receive.

Look into the small print of these agreements carefully before you committing. If in doubt get a professional to look at it and have it explained to you.

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.





Bankruptcy UK-Debt Solution Bankruptcy Experts

Bankruptcy UK-Debt Solution Bankruptcy Experts