For those unfamiliar with the Insolvency Service’s procedures, it is advisable to seek bankruptcy help. There are a number of areas where people can ‘trip up’ when applying for Bankruptcy, especially when completing the online Income and Expenditure.
As the submission of bankruptcies is now an online process and it is no longer required to attend court, some people view the application process as ‘watered down’ and give it a go. But a bodged Income and Expenditure can have serious knock on effects, as if certain items have been claimed as expenses and they are ‘non-allowable’, they will be added to a so-called ‘Income Payments Agreement’.
An Income Payments Agreement or IPA is imposed for 36 months to cover costs and to be distributed among the creditors, and is based on any surplus income the applicant might have. Therefore, if it is found that after your expenses have been deducted from your income there is indeed a surplus, you will be placed in an IPA.
This might not sound like Rocket Science to most of us, but what if you have included 4 – 5 items from the ‘non-allowable’ list? There are around 18 – 20 (depending on your circumstances) of these forbidden items and we’ve seen plenty of cases where an applicant was placed in an IPA for £200pm for 3 years, when it was completely avoidable.
This is just one of the many areas where the uninitiated can get it so wrong, but then there is the question of what happens to vehicles, mortgaged properties, rented accommodation and personal property to be answered. There aren’t many people who know the answers, but we certainly do.
If you need Bankruptcy Help call us on 01425 600129 and we’ll talk you through your options. We are here to help and there is no obligation to use our services.