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

 

Considering Bankruptcy As An Option

 

All financially active people can end up considering bankruptcy at some point in their life.

Most individuals choosing bankruptcy as an option is the last resort.

Our clients consist of professionals and ordinary people with over £25k debts. They are ordinary folk who have jobs and lives to manage and have simply ended up in financial positions that they would never have been able to foresee that they would have ever been in this position.

Who considers bankruptcy as an option

Its not just ordinary householders that consider bankruptcy as an option. Its Barristers., Doctors, Dentists, Estate Agents, Independant Financial Advisors, Builders, architects all manner of professionals as well as Tradespeople, Property Developers, Traders, Online Gambling or Forex traders.

Ordinary people living ordinary lives with ordinary financial commitments where a change has happened that influences everything.

Retired people who have tried Debt management Plans, or have entered an IVA which has failed or is failing.

Recently divorced or separated where one or the other has accumulated debts and now has monthly payment commitments where the income just isn’t sufficient so service living cost monies and minimum repayments.

People who have entered an IVA and who realise that actually they have no assets ton protect, they have agreed that the payments are to increase and subsequently cannot mange these higher payments because there are costs that weren’t foreseen or included at the time the IVA was arranged, or they have received an annual statement only to find that no monies have been paid to the creditors at all and all monies paid over have gone to pay the IVA company’s fees.

Self Employed individuals who have run into difficulty with HMRC and its usually a demand for payment or a bailiff visit or letter that triggers them to take action.

Company directors who have ended up in a position where future trading seems impossible because of something that has happened.

These reasons usually consist of.

  1. HMRC demands for payment for monies that are unavailable through the business. It may be that personal credit has already been put into the business and options are running out.
  2. Problems with an accountant who has caused the business a serious accounting problem.
  3. A dispute with a Landlord or supplier that seemingly cannot be resolved through attempts to negotiate.
  4.  Something has happened that wasn’t foreseen and the person simply doesn’t have the skill-set or knowledge to manage the situation that is ahead of them.

How can we help You:

Very importantly we are not an advice organisation. My philosophy after nearly 20 years in this industry is that anyone who asks us for help and assistance must understand that if whatever options are going to be taken are taken because the person will be asked a series of questions that they have never been asked before. The responses to these questions empowers the person with the right amount of knowledge to decide what they want to do on their own.

My experience with companies that advise is that it feels to the client that they are being sold a solution and they use words like, you must, you should.

My team are trained to ask a short series of questions that very quickly provides us with a complete snap shot of the persons circumstances, and very importantly How or what have been the contributory factors as to how they have ended up in the position that they are currently in. Its important to understand our clients needs at the very first phone call. It really doesn’t take long at all and virtually every client feels better than they did before they spoke with us. In managing services that we provide its always been so very important that a client journey is positive and that they aren’t just dealing with the problem they are dealing and finding positive solutions and new directions that will help them to move to safer ground and be in control. Our job is to empower our clients with the basic skill sets are are needed to move into the future with.

Our job is to provide the solution that works for you.

 

HMRC Homeowner Bankruptcy Avoidance

HMRC Homeowner 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 the majority of individuals bankrupt in the UK and we’ve found that most people simply don’t understand the implications of being made bankrupt.

Therefore if you are or have been made bankrupt and you are a homeowner with equity in the property or have other assets that will enable you to clear all your debts in full then you may want to consider bankruptcy avoidance.

If you have received a statutory demand and have tried to get help, but for some reason have been unable to find the answers you are looking for, we suggest you call us as the problem is not going to go away. When you are made bankrupt and you are a homeowner, a £3000 debt will escalate into a much bigger debt.

Consider this example: 

Mr F is made bankrupt in march 2015. He is a homeowner with sufficient equity to clear all of his debts. He was made bankrupt by HMRC for £10,841.39 and 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

Hence the total amount required to pay off all of the bankruptcy debts and achieve annulment is £66,083.55      

In this example, we can see how a debt of just £10,841.39 has escalated over the course of 22 months into a debt of £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.

 

Director Protection where a company is facing Liquidation or Insolvency Proceedings

Director Protection When A Company is Facing Liquidation or Insolvency Proceedings: T: 01425 600129 (local rate)

“That will never happen to me. My business and my team are far to strong and organised for that to ever happen“.

There’s no company director out there who is exempt from a business failure. People build their businesses over time and often sign personal guarantees with banks, take advice from accountants and other professionals, yet still fail. This might not always be their fault: the accountants might have provided inappropriate advice and business partners default on promises. It happens all the time.

The facts are that 80% of new businesses fail in the first 2 years. Entrepreneurs that start up businesses do so on the basis that they believe that they can make a success of a product or service, and ‘set up shop’.

If you are a director who is heading for the rocks or who has hit the rocks and all kinds of new administration and litigation processes are visiting you, then you need to take action. This is what we see a majority of the time. See if you recognise any familiarities with yourself.

We are in late March 2017.  Things have changed.

Not so long ago, you had an effective team and you could reach out and get what you needed at any given moment in time. You led your business from the front.

But since that time, certain staff members have slacked off and allowed the mangers to take the lead. You might have offered your accountant a share in the business.  There might have been a sudden change in your personal life and it has become common knowledge. Suddenly, the focus of the team has shifted and there is more concern about your personal issues than keeping the team strong. The team no longer finds solutions to problems, but instead approaches you for solutions. Apathy has set in with all of its malignancies.

Remember, people are selfish. You might have thought that your team was 100% committed to you, but the only reason they are committed is that you are paying them to be. Would they walk with you if you couldn’t pay them? Definitely not is your answer.  If this is your thinking then you are deluded. The most important time for making the right decisions in your 40s and 50s, as time ‘is running out’. You would have built up considerable business experience over the years and would have a good idea of what works.

The pressure is on to get it right, so making the right choices is important. There’s no time to hide behind the people that you have employed and who are already proving themselves to be part of the problem.

The time has arrived to take positive action, if you to avoid losing the business altogether. Administration is a good way of guiding your company through troubled waters and this is generally undertaken by an Insolvency Practitioner. Provided you find a dynamic one, someone who shares your vision and who can demonstrate a strategy for the future, an administration is a proven way of recovering the company’s position.

The alternatives are:

CVA – Company Voluntary Arrangement – Providing 75% of the total amount of debt owed can agree to the proposal then this can be liberating for the company or business.

Company Liquidation – When the business has no recovery position, a Director’s liquidation should be more advantageous. The reason is that you will go through the process of shutting the company down properly. All difficult areas will be covered. This is where Director Protection is critical and will make the absolute difference between a good result with no or marginal complications or you have chosen the wrong liquidator and your world and life as you know it is going to significantly change.

Don’t be afraid of alienating people if its those very people that have contributed to the current position.  I would say that it is critical to make your own decisions. You are the one thats responsible for your company director obligations despite how much you had thought that it was sorted and under control via a 3rd party. Its you.

Here’s the important bit:

If your company is facing liquidation and you believe that you have left yourself open and exposed and may need director protection. Then delaying isn’t going to help.

The process with both involuntary and voluntary company liquidation is that reports need to be prepared and submitted to the Secretary of State.

If you lined up 10 Insolvency Practitioners and gave them the same liquidation to manage you would find that they would all have a varying way of dealing with it. Often is the case that they are afraid to speak openly.

They could help and assist you by explaining to you varying options that will help you personally but are unlikely to suggest things that will really help you because they are looking at what is in it for them most of the time.

If you are feeling browbeaten by the process then its critical that you pick yourself up, brush yourself down, figure out a plan and go through the problem areas and speak to someone that can afford the time to give you to ensure you understand everything and the implications of certain actions.

In a nutshell you need a pro active accountancy firm or Insolvency Practitioners. A face to face meeting, a contact telephone number where you can speak to them when you need to.

23rd March 2017

 

 

 

 

 

 

Bankruptcy Questions and Answers

To access the complete list of bankruptcy questions and answers on this website (210+), simply click on ‘bankruptcy questions’ at the top of the Home Page and scroll through the ten available pages. Everything, from ‘do I need to take my ID to court’ to ‘how do I go bankrupt from Ireland’ is covered and there is also a facility to ask your own questions. If you would prefer a quick chat, call us on 01425 600129 or 07894 481175.

Can I have a bank account when bankrupt?

Yes, but certain banks are more approachable than others. Barclays has a basic ‘cash’ bank account which offers a chip and pin card so you can at least pay for things in a shop, while the Cooperative offers a ‘Cashminder’ current account which again has a chip and pin card, though there is a monthly charge associated with this account. It would be a good idea to get one of the ‘credit repair’ credit cards as soon as possible (Lumus / Capital One), as regular small purchases and payments will help restore your credit rating over a period of time.

Bankruptcy UK offers bankruptcy help across the board, including dealing with creditors like HMRC, completing the all-important Income and Expenditure and professional submission of the application online. Call us on 01425 600129 or 0800 5977 977 for a chat about your circumstances.

Do I still pay tax when bankrupt?

Your tax code will change to NT (No Tax) for the year you are bankrupt and the money you would have paid is redirected to cover the Insolvency Service’s administrative costs. The only exception is if the bankruptcy takes place around late February / March, as these arrangements have to complete by the end of the tax year.

You will be told how and where to pay the money. Don’t be concerned about your company knowing about the bankruptcy, as there are many reasons why a tax code might change and they will not be given a reason.

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.

Two questions about bankruptcy ….

1. If my limited company closes will it affect my personal credit rating. 2. I only own 50% of the business, could I buy myself out of 50% of debt?

A limited company is a separate legal entity to an individual and debts registered against the company do not reflect on the Directors’ credit ratings, nor are they personally responsible for the debts. The exception to this is where Personal Guarantees are signed with a bank – if the debts are defaulted on, the individual is personally liable and it will definitely affect their credit rating. Regarding the second question, this depends on whether you signed Personal Guarantees or not. If not, you do not personally owe anything to anyone.

Call us for a informal chat about your circumstances or for bankruptcy help on 0800 5977 977 or 01425 600129.

Will an informal arrangement help me avoid bankruptcy?

As a business owner is there an informal business debt management plan that I can enter into in order to contain my business debt so that I can continue to trade? I have a positive business but have been subject to staff theft and I now have debts that I need to clear up. I need some type of arrangement for 3-6 months so that I can get my affairs in order. Can you help?

Ordinarily Debt Management Companies do not offer such plans. They will suggest an IVA or a CVA (company voluntary Arrangement). The latter might sound attractive, but it’s a long term plan and we don’t think it’s suitable. All considered, it might be best if you approached your bank for some type of credit facility. The upfront cash would settle the outstanding debts and a bank will be flexible re repayment.

We would be pleased to speak to you to establish the facts and see if we can mediate an informal arrangement, but it is often the case that companies want a formal arrangement in place.

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 Business Bankruptcy affect my credit?

Not if the debts are associated with a limited company, as this is a separate legal entity and a Director is not personally responsible for those debts. However, it is often the case that banks ask Directors to sign personal guarantees in which case the Director would be personally liable in the event of default, and this would definitely affect his / her credit rating.
Business debts associated with a sole trader / Self employed are directly accountable for the individual concerned and would directly affect personal credit ratings. Call us for a chat if you need help – we have plenty of experience in this field.

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.

Self Employment Bankrupt – Can I start a business when I am bankrupt

Self Employment Bankrupt – Can I start a business when I am bankrupt

When people enter bankruptcy the process should be explained to them fully. All duties and obligations to cooperate with The Insolvency service should be stated to you. There are no restrictions placed on an undischarged bankrupt that will prohibit them from being a self employed sole trader.

If you were a self employed sole trader prior to entering bankruptcy then you will not be able to continue to trade using the same name. You will have to change the name in order that it is not similar in any way to the trading name that was used when prior to going bankrupt.

You need to establish the reasons as to why you want to consider the option of self employment and whether you can really make a financial success out of doing it. You have to face facts and be realistic because the last thing you would want to happen is to end up repeating the same mistakes again. Having a fresh srat is important. Important in many ways. as you have the ability to think about the problems that you previously encountered and make sure that you are prepared to overcome the obstacles and challenges of before.

How long is it when you can open your own business when made bankrupt? Can I be a Self Employed bankrupt

If you are referring to a Directorship, it will be possible once you have completed the 12 month bankruptcy period. However, there are no restrictions about being self employed or acting as a sole trader. There are a few provisions to note, especially about how much you can borrow, but it is otherwise commonplace.

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