Homeowners Bankruptcy Avoidance
Avoiding bankruptcy when you have assets such as a home with equity or other assets that you don’t want to lose is essential.
Generally its HMRC or council tax that makes most individuals bankrupt in the UK.
We often find that people just simply don’t understand the implications of being made bankrupt.
If you are reading this and have received a statutory demand and have tried to get help but for whatever reason find that the outfit that you have been to just isn’t really speaking your language then its imperative that you don’t stop and give up looking for help. Its critical that you get it.
When you are made bankrupt and you are a homeowner or even receive an inheritance. Then you will be fooled to think that for example a £3000.00 debt will only be a £3000.00 debt after you have been made bankrupt it wont!
Look at this:
Mr F is made bankrupt in march 2015. He is a homeowner with sufficient equity to clear all his debts.
He was made bankrupt by HMRC for £10,841.39
in 22 months the costs relating to the trustees fees are broken down as follows:
Statutory interest:- £ 1639.00
Trustees costs:- £19,128.30
Estimated Additional costs:- £ 5000.00
Trustees Disbursements:- £ 886.99
Estimated additional disbursements:-£ 250.00
Legal Fees:- £ 4781.85
Estimated additional legal fees £ 1000.00
Agents fees:- £ 722.00
VAT £ 6353.87
Insolvency Service:- £ 1224.84
Petitioning Creditor costs:- £ 2297.00
Secretary of State Fees:- £11,957.53
Total amount required to pay off all bankruptcy debts and achieve annulment £66,083.55
So now you can see how a debt for £10,841.39 can escalate in 22 months to £66,083.55
If you are that homeowner facing bankruptcy but hesitating in drawing the money out of a property to pay the debt then now you can see why its worth doing whatever it takes to get a debt paid when you are a potential bankrupt homeowner seeking assistance.