Can I complete my own Online Bankruptcy Application

The short answer to this is yes provided you are fully acquainted with Insolvency regulation and have a solid Income and Expenditure. The Insolvency Service has budgetary constraints like every other Government Department and will seek to place you in a payment programme (IPA) if at all possible. Part of this payment is used to compensate the creditors, while a portion is retained to offset their own costs.

We have now completed several hundred of these online applications and they are every bit as formidable as the former Statement of Affairs. The really tricky part is the income and expenditure, which invites people to claim all manner of non-allowable expenses as being perfectly reasonable. But if you fall into any of these traps, you will find yourself saddled with an Income Payments Agreement (IPA) for the next three years.

For example, the online application now invites applicants to claim expenses for everything from tobacco and alcohol – completely reasonable you might think – to magazines, top of the range TV packages and sports clubs memberships. Believe us, when it comes to bankruptcy, the Insolvency Service is almost Victorian in its outlook and anything fanciful or excessive is soon reigned in.

You might think it perfectly reasonable to include an element of entertainment into your income and expenditure, but this is exactly what they want you to do, as it ensures an IPA for the next 36 months. These IPAs are necessary for the Insolvency Service to offset their costs, but they are avoidable if you know what to look for and we do.

The £680 that the Insolvency Service charges for processing a bankruptcy does not cover all of the administrative costs despite the fact that there are no more rebates for people out of work, on pension or disability. By making this an online process and adding this ‘user friendly’ slant to the application, people soon drop their guards and find themselves in trouble.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application on your behalf. Please note, court appearances are no longer required as everything is done online. Call us for a for a chat about your circumstances on 01425 600129, we are here to help.

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