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Post Bankruptcy Services now More Important than Ever

Bankruptcy UK has noticed a marked increase recently in the number of clients returning with post bankruptcy issues, following an apparent ‘tightening up’ of procedures by Official Receivers i.e. the Insolvency Service.
It appears that clients are now routinely receiving Income Payments Agreements (IPAs) despite accurate Income and Expenditure documents clearly showing that there is no surplus income. This is a worrying development and now, more than ever, the Public needs support in this critical area.
An Income Payments Agreement is an arrangement designed to return money to the creditors over a 36 month period. Therefore, even a ‘modest’ IPA of say £75 per month ends up costing £2,700 over the three year period, something that would be a burden if not warranted.
Bankruptcy UK has set up a dedicated team to resolve these issues and has achieved success in challenging and overturning the IPA decisions levied by the Official Receiver’s Office. This is unique in the Insolvency Services sector, as most companies simply produce the paperwork and ‘wave the client goodbye’.
Another area of concern is motor vehicles. The allowable limit has reduced from £2000 to £1000 and even then it is far from certain that the vehicle will be allowed. In a recent case, a married couple had a vehicle worth £800 attached on the grounds that the husband had a company car.
The fact that the husband was away on business four days a week and there were four young children to shuttle around did not impress the Official Receiver. Fortunately, Bankruptcy UK challenged the decision and had it overturned.
It appears that there has been some type of directive to Official Receivers to ‘crack down’ on bankrupts and to obtain a monthly payment at all costs. Of course, no one will admit to this, but this is quite clearly what is happening.  Professional assistance with bankruptcy is therefore now more important than ever.

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