Our agents are on hand to speak to you 7 days a week.
GET IN TOUCH WITH US NOW!     01425 600129     enquiries@bankruptcy.co.uk

OUR TEAM ARE AVAILABLE NOW TO HELP WITH COMPLEX INSOLVENCY ISSUES

 

HMRC | Homeowners | Bankruptcy Avoidance

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.

 

The Sheriffs are coming … but who exactly are they?

You might have seen them on TV and marveled at how successful they at getting payments out of debtors, but just who are these people and how do they operate?

To start with, we need to readdress them as High Court Enforcement Officers (HCEOs) and they swing into action once in possession of a High Court writ of control (formerly known as a writ of Fieri Facias or Fi Fa). If you have successfully obtained a County Court Judgement for more than £600, you can apply to have it transferred up to the High Court, at which point the required Writ of Control can be obtained.

The HCEOs initially write to the debtor, but if payment is not received in full during the notice period, the HCEO attends the debtor’s premises to enforce the writ and that’s when you hear the now-familiar ‘I have been instructed by the High Court to seize goods to the value of ..’ and you see the debtors’ faces crumble. All costs are added to the Writ and the Debtors suddenly find themselves wondering why they didn’t just cough up in the first place.

You could, of course, use everyday County Court Bailiffs but they don’t quite have the same clout, fear factor or incentive. Besides, after all the hassle you’ve been through, surely it’s worth the extra effort if only to see the look on their faces as they finally have to cough up.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

Can Bailiffs force entry if I go bankrupt?

Bankruptcy in itself does not result in Bailiff activity and you certainly won’t have any furniture or personal possessions removed, but there are two other factors that might affect bailiff activity. The first is if you have ignored the terms of a County Court Judgement i.e. you haven’t honoured the monthly payments and the creditor has taken action; the second is if you have a Liability Order for non payment of council tax. Bailiffs can only ‘force entry’ for certain commercial collections, but not for household collections.

If you are considering bankruptcy, we will help you throughout the process and submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us for a chat or for bankruptcy help on 01425 600129.

 

What debts are written off in bankruptcy?

In addition to the usual credit card, loan and overdraft debts, you may include HMRC, tax credit overpayments, creditor bills, utility bills, council tax, shortfalls on property repossessions and just about any kind of debt worth mentioning. Regarding property, it’s worth mentioning that even if a repossessed property has yet to be sold it can still be included in the bankruptcy as a ‘foreseeable debt’ and you would not be liable for any shortfall after bankruptcy.

You can’t include court (speeding) fines, Child Support payments and student loans, but you can include parking fines and congestion charges, which might be useful for those living in London!

Bankruptcy UK offers bankruptcy help across the board and will submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for a chat about your circumstances.

Can Bailiffs come into my house if I go bankrupt?

 

The short answer to this is ‘No’, the bankruptcy procedure does not result in Bailiff activity – period. In the lead up to the bankruptcy, you may be under threat, particularly if you ignore County Court Judgements or have a Liability Order for non-payment of Council Tax against you.

A Bailiff cannot enter your property unless you invite them in. Once you have invited them in or if they can gain unforced entry via an open door or window for example, they can return to court to obtain an order to enter with police and a locksmith. Try contacting the council or courts to set up a payment arrangement if you are really worried.

Feel free to call us on 01425 600129 with any other questions or for bankruptcy help. Questions may also be posted on our Home Page.

Will bankruptcy stop council tax bailiffs?

If you have received a liability order from the Council it could be tricky, as any monthly payment scheme set up by the Bailiffs prior to the bankruptcy generally has to be honoured for the year you are bankrupt and the Official Receiver rarely intervenes. However, if you are lucky, the Bailiffs will back off once the advice from the Insolvency Service is received – but don’t bet on it. The reason for this is the seriousness of non-payment of Council Tax.

Call us on 01425 600129 or 07479 739139 / 07894 481175 with any further bankruptcy questions or for bankruptcy help. Our advisers are not scripted and will gladly explain everything in easy to understand terms.

Liability Orders and bankruptcy – can i still go bankrupt?

Yes you can, but if the Bailiffs pursuing the debt have already made can arrangement with you, you might be obliged to honour that arrangement e.g. £150 per month, for the 12 months that you are bankrupt. Just so our readers understand, a Liability Order occurs when the Council has given up on trying to recover council tax arrears from a tenant and approaches the court to intervene. This invariably results in vigorous Bailiff activity – the worst kind as non-payment of Council Tax is a criminal matter. If you are lucky, you might have a Bailiff who gives up once you have gone bankrupt, but don’t bet on it. The Official Receiver might not interefere with such arrangements unless there is a clear possibility of setting up an income payments agreement.

Bankruptcy UK offers bankruptcy help across the board and will submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for a chat about your circumstances.

 

Will my debts go to my husband if I go bankrupt? We are separated …

No they will not default to your husband unless they were joint debts. Joint debts are taken out ‘jointly and severally’ which means both parties are responsible for the full amount of the debt (not half each). If the debts were taken out in your name only, they will definitely not go to your husband.

Feel free to call us on 01425 600129 or 07479 739139 / 07894 481175 with any further bankruptcy questions or for bankruptcy help.

Warrant of execution – will bankruptcy stop this?

I have a warrant of execution threatening Bailiff action to remove goods from my house will bankruptcy stop it?

Yes it will, as Bailiff activity is reported on the online bankruptcy application and the Official Receiver will be aware if it. Even so, you would need to take immediate action, as there is a delay between submitting the case online and it being dealt with by the OR. A warrant of execution usually arises when a monthly payment for a County Court Judgement has been missed and County Court sheriffs visit for collection.

If the warrant was for unpaid Council Tax following the issue of a Liability order by the Council, there is some doubt as to whether even a bankruptcy would stop the action. Bailiffs collecting Council Tax arrears are often allowed to continue collecting monthly payments during the 12 month bankruptcy period. However, we will do what we can to help with this.

Bankruptcy UK offers bankruptcy help across the board and will submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for a chat about your circumstances.

 

 

Bankruptcy UK

Bankruptcy UK