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UK Archives - Bankruptcy UK

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IVA | Increased IVA Costs | What are my options

My IVA company wants more money – Can You Help

Increased IVA Costs, What are my options? People are generally so fixed on getting relief from creditor phone calls and letters and the sheer pressure of being in debt that they don’t look properly at whether or not the IVA agreement they are entering is actually going to work in the long run. There is usually hope attached to circumstances improving and that when the time comes they will be able to manage the increased payment.

Hi. I’ve been living in the UK for 3 years now. I left some unpaid debts in Poland, which i tried to resolve by entering into an IVA in the UK. Unfortunately, they have increased IVA costs by 60% for the second year and I can’t afford it. Can you help me leave the IVA and go bankrupt?

Yes we can, but we need a bit more information about your circumstances so please call us on 01425 600129 when possible. You mentioned that they are looking for higher payments after the first year. You might be surprised at how often this happens and it is the very reason why so many people abandon their IVAs in favour of bankruptcy. What starts off as a payment of £90 quickly escalates to £170, leaving people in difficulty.

IVA

We will quickly determine whether you will be asked for a monthly payment in bankruptcy and start the process for leaving the IVA. It is often the case that there is no payment at all, or at the very worst, a greatly reduced one. We will also prepare a letter for you to send to the IVA company and prepare everything for the online bankruptcy application (you don’t have to attend court these days).

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.

If I’m married does my wife need to go bankrupt as well?

No she doesn’t, but you need to take into account that if the debts were taken jointly, she will also be liable for the full amount outstanding and not half, as some people think.

The reason for this is that loans in the UK are taken ‘jointly and severally’ and that means you both owe the full amount. If, on the other hand, this is not the case and she only owes a few thousand compared with your £15,000+ debts, she might well be advised to go a different route.

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.

White House ‘Looking closely’ at including student debt in bankruptcy

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.

Insolvencies on the decline … but only just

The Insolvency Service has reported that the number of insolvencies has decreased by 4.6% compared with the same time last year, yet there were still a whopping 24,840 insolvencies throughout the UK.

The number of bankruptcies had eased somewhat due mainly to the introduction of Debt Relief Orders, which is a type of ‘mini bankruptcy’ for those on very low income with less than £15,000 of debt. However, bankruptcies may well increase again as continued disillusionment with IVAs results in people abandoning these in favour of bankruptcy.

Another factor which might lead to an increase in the number of court sanctioned insolvencies is a growing awareness of the futility of Debt Management Programmes. Most people realise that the capital is never paid off and that promises of interest rate freezes are only temporary.

To be fair, Debt Management Programmes do keep creditors at arm’s length, but they don’t solve the problem which is getting rid of the debt.

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 Information UK

Bankruptcy Information UK

Welcome to www.bankruptcy.co.uk Established 1998 We have been helping people with complex personal and commercial debt problems. We believe that we are different to other debt solution businesses as we offer a firm but understanding approach to the most complex of circumstances opposed to other organisations whose primary focus is to sell you into a debt management plan or IVA Individual voluntary arrangement.

Our experience tells us that when we receive a call from someone looking for more help or assistance, then we have to firstly get a snap shot of what is going on in the background in order that we can quickly obtain an accurate view of who you are and what it is that is creating the problem. We know and understand only too well the way that debt problems can make a person feel and we will seek to get onto the same page as you within the first few minutes of an initial conversation. Ultimately you need to know and understand that we can provide you with the level of assistance required. It is also crucial that you feel that your circumstances are understood by whoever you are speaking to.

After we have confirmed your contact details then the initial primary focus is to understand:

1. What you have got going on around you
2. Examine the options that are feasibly available to you
3. Identify the trigger points as to how you have ended up in the position that you are in.
4. See if there is any chances or claiming any monies back from creditors or loan providers where you may have a legitimate claim for mis sold mortgage or PPI that may have been applied to any loans or credit facilities that yo have ever taken out on the past.

2013 has been a year of speaking to people that have absolutely no idea that there was/is monies available to claim back. These monies are often substantial and make the bottom line look very different. Although it is not always possible for a claim to be looked at as a solution. It is certainly an option that has to be considered.

The options are as follows:

Do Nothing- Wait and see what happens, knowing that if you take this option the situation may simply go away, or something could happen to change the landscape of your debt situation, such as a windfall or additional household income.

Personal Bankruptcy- This option should be considered first of all in our opinion with higher debt values. If you have no assets to speak of, and you have a job or career that will not be affected by a bankruptcy order, and you cannot see any opportunities coming up that are likely to enable you to manage your debts, then a bankruptcy could be a good option for you. Especially for all those people that have struggled with a debt management plan or individual voluntary arrangement.

IVA (individual Voluntary Arrangement) These are much better than they used to be. The reality is today that if you have a minimum debt level of £7k plus and a disposable income of £80 a month then you are able to apply for an IVA. An IVA is a legal agreement between you and your creditors, put together by a licensed Insolvency Practitioner or Chartered Accountant that practices in insolvency. Your creditors are made an offer which is based on your income abilities to repay an amount of money over a 5 year period. Providing 75% of the total amount of debt agrees to the proposal being made then the remaining 25% are committed to agree to the arrangement. These arrangements usually run over a 5 year period. It is fair to say that you can look at an IVA like an interest free loan payable monthly over 5 years. The only problem is that if your income increases or you have any changes to your circumstances then you will have to pay more into the arrangement. We often find that an IVA can be used to get creditors under control and all standing in line. Once this has taken place it is quite feasible for a debtor to make an offer to creditors which is equivalent in fiscal value by a 3rd party who will make a one off payment to clear the IVA.

Debt management Plans- These are very effective in signalling to your creditors that you are in difficulty. The Debt Management provider will contact all of your creditors requesting that interest is frozen on the accounts and for our creditors to be made aware that something has happened but you have taken action to do your best to manage your debts. The debt management plan is not recorded anywhere. Unlike an IVA which is a legal agreement, stamped by the court and recorded on the insolvency register. This last for 5 years. In our modest opinion we would say that a Debt Management Plan is a good short term solution which doesn’t affect any assets that you have such as a car of finance or a property that you own. It is a good way of managing creditors until you are in a position to apply something a little more solid. A lot of homeowners choose a Debt Management plan over an IVA purely because they will not be restricted from selling a property, unlike a bankruptcy or IVA where you will need authority from their legal department to sell.

So these are the options apart from specialist negotiation which is often required when the trust has been breached between creditor and debtor. Sometimes a creditor can apply hostile approaches towards a debtor simply because they are fed up with trying to deal with them.
We can assist in matters like this but costs will apply and you will need to complete the 3rd Party authority in which you will be enabling an officer of www.bankruptcy.co.uk to speak on your behalf.

Is overseas debt included in a UK bankruptcy?

Would a bankruptcy declared in the UK include an overseas mortgage (Cyprus) on a property with title deeds still not in my name. Would this be considered unsecured?

First of all, you would need to include your interest in any property worldwide, as the Official Receiver needs to know about all of your assets. We’re not clear about what you were saying about the title deeds, but if you owned a property in Cyprus which were to be repossessed and sold at a loss, you would be able to include this is in a UK Bankruptcy. In fact, this applies to properties across the Eurozone. For properties outside the Eurozone, you could include the property but the bank concerned would not be obliged to act on the bankruptcy i.e, you might still be liable.

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

 

 

Setting up a business after Bankruptcy …

I was declared bankrupt in Nov 2010 and given a 5 year restriction order. What would be the best way of investing in other companies? I would ideally like to set up a holding company and invest in various start up ventures.

First of all, you are still bankrupt which means that if you borrow more than £500 off any bank / person / organisation you have to declare that you are bankrupt. Secondly, you can’t be a Director or be seen to be influencing the running of a company in any way. However, there’s nothing to stop you from acting as a sole trader in the UK or being a director overseas. Problems can exist with restriction orders depending on what kind of agreement that you have signed. It would be helpful to know what your plans are in order to establish a clear route ahead.

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

Will a bankruptcy in the UK be valid in Norway?

If you were to declare bankruptcy in England or Wales with Norwegian debt, it will not be recognised in that country as there are no cross border agreements in place. Provided you remained in England or Wales after the bankruptcy, your Norwegian creditors would not be able to pursue you. However, if you were to return to Norway, they might choose to recover the debt as it still exists in their eyes.

Bankruptcy UK offers assistance at all levels and will also prepare and submit your bankruptcy application online. Court appearances for bankruptcy are no longer required. Feel free to call us for bankruptcy help on 01425 600129 for a chat about your circumstances.

Joint mortgage and my ex is going bankrupt ..

I am separated from my husband but unfortunately we still have a joint mortgage. This is the only thing I still have with him and he says he is filing for bankruptcy. How will this affect me as it could affect my job as I work for UK Border Agency.

First of all your job is not under threat, as it is your ex and not you who is going bankrupt. Quite frankly, we doubt your job would have been under threat even if it was you who went bankrupt, as only certain professions are affected. As to whether you keep the property, this will all come down to whether there is equity in the property or not.

If there is no equity, no immediate action will be taken, but the Insolvency Service will place a note on the land registry that restricts selling or re-mortgaging without their permission. A review of the equity situation will be made 27 months later, at which point they will give up their interest in the property if the situation is unchanged. We need to point out that you will need to maintain mortgage payments throughout the process.

Bankruptcy UK offers assistance at all levels and will also prepare and submit your bankruptcy application online. Court appearances for bankruptcy are no longer required. Feel free to call us for bankruptcy help on 01425 600129 for a chat about your circumstances.

Partners Income and Bankruptcy – Questions

Partners Income and Bankruptcy

Are my partner’s wages taken into account in bankruptcy payment orders

The short answer is yes, but only what they contribute to the household. A lot will also depend on whether your partner is also going bankrupt, as she might have her own expenses. Let’s take, for example, John who is going bankrupt but Janet is not and she earns £1000 per month. Janet might have personal expenses of £600 (loans, car payments, etc) and is therefore only able to contribute £400 to the household and it is this lower figure which is declared. The other point is that although her income is included, the expenses also double up and it’s often the case that there is no surplus income.

Compiling an accurate income and expenditure statement is the single most important part of preparing the bankruptcy paperwork as, if you get it wrong, you could end up contributing in an Income Payments Agreement for the next three years. We know what may claimed when it comes to preparing an income and expenditure, and we’ll gladly talk you through it.

Call us on 01425 600129 or 07479 739139 / 07894 481175 with any further bankruptcy questions or for bankruptcy help.

 

 

 

 

Bankruptcy UK

Bankruptcy UK