As from 6th April 2016, The bankruptcy process has changed. There are no more court appearances and bankruptcy applications are completed online. However, that does not necessarily make things any easier as the original Statement of Affairs (Form 6.28) and Debtor’s Petition (Form 6.27) are now merged into one long, complicated online submission.
For this reason, we have chosen to continue completing the original Statement of Affairs to send to our clients for approval and sign off, and as a means of keeping a record of what was said and done.
Perhaps the most important part of the bankruptcy application is the income and expenditure. This is because the Official Receiver will seek to attach any surplus income in what is known as an Income Payments Agreement (IPA). This is where you might be expected to pay an amount each month for 3 years. This money goes towards repaying your creditors if the Official Receiver believes you can afford it. Note:Although your listed expenditure is considered, it might not be accepted, as there are strict guidelines which the Insolvency Service adheres to and we know what these are.
For those proceeding alone, the bankruptcy process might be described as follows:
- Seek advice on whether bankruptcy is in your best interests.
- Complete the online application and submit
The bankruptcy process is straightforward if you are transparent with your dealings. The bankruptcy process is a lot more difficult if you have been or trying to hide assets from the Official Receiver or Trustee. The bankruptcy process can in some instances be over very quickly and there have been some instances where it has only lasted 4 months and then the individual is discharged.
For those receiving professional assistance i.e. if you were using our services, the bankruptcy process is somewhat more straightforward:
- We would do a complete fact find over the telephone
- We would complete a thorough income and expenditure, using our knowledge of what can and can’t be claimed, and the limits
- We would arrange to have the application submitted online
The bankruptcy process affects people in different ways. Although this is a bold statement after 16 years in the industry we have seen first hand how the bankruptcy process can affect the lives of some people. In many instances, the people that go through the process on their own struggle the most; it’s almost as if they want to move forward but are, in fact, facing backwards. If this is you then you need to talk to us.
Feel free to call us for a confidential chat about your circumstances on 01425 600129 and we will talk you through your options.