The short answer to ‘Do I see a Judge when I go to Court’ is no, as bankruptcies are now submitted online and there is no longer a need to attend court. The function of the Judge is now performed by the Adjudicator in Bankruptcy.
We have now completed several hundred of these online applications and they are every bit as formidable as completing 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 and if you do, you will find yourself saddled with an Income Payments Agreement (IPA) for the next three years.
For example, the application invites applicants to claim for everything from tobacco and alcohol – completely reasonable you might think – to magazines and sports clubs memberships. When it comes to bankruptcy, the Insolvency Service is set in its ways 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 as they help offset their costs, but they are avoidable if you know what you’re doing – and we do.
The £680 that the Insolvency Service charges for processing a bankruptcy does not cover the administrative costs despite the fact that there no more rebates for those persons out of work, or 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 an IPA.
Bankruptcy UK has been helping people with bankruptcy since 1998 and will guide you through the process step by step. We will avoid jargon and confirm all discussions by email within 30 minutes. Call us for a chat about your circumstances on 01425 600129.