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Apply bankruptcy online

Apply bankruptcy online ? So you’re thinking about doing your own bankruptcy .. read this first

With the advent of being able to apply for bankruptcy online online almost seems like fun to apply for bankruptcy online these days, but the process is fraught with hidden dangers. We won’t go as far as saying the Insolvency Service has deliberately laid traps for us all to blunder in to, but after completing around a hundred of these applications we urge caution before proceeding.

The online application comprises eight sections and it all starts off harmlessly enough, but where it becomes really tricky is the completion of the income and expenditure. Bearing in mind that this will decide whether you will be placed in an Income Payments Agreement (IPA) for the next three years or not, you’d best answer all the questions correctly.

Here, the Insolvency Service is generously inviting us to claim costs for things like hairdressing, social clubs, alcohol, tobacco, entertainment, newspapers, magazines and gifts – but guess what? These things are not allowed!

We counted around 18 separate items that would definitely not be allowed and if you happened to include any of these in your income and expenditure, you would have unwittingly painted yourself into a corner. If you consider that an IPA of £150pm will cost £5400 over three years, we recommend you seek professional assistance. We are especially aware of the importance of the income and expenditure and know exactly what may be claimed and for what amount.

Another area where we experienced difficulty was in loading the various creditors. In one case, we wasted half an hour trying to figure out how to load ‘Intelligent Finance’ which was being repeatedly rejected. It turned out that you have to initially enter ‘Intelligent’ without the ‘Finance’ and it then gives you options – talk about obtuse!

Bankruptcy UK offers bankruptcy help for those who might be unfamiliar with the jargon and procedures involved in submitting an application online. We will take care of everything and submit your application to your best advantage.

Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for an informal chat about your circumstances.

Bankruptcy fees reduced from 6th April 2016

The Insolvency Service has announced that bankruptcy fees will be reduced from the current £705 to £680 from 6th April 2016 as it rolls in its new online service. The bad news is that this applies across the board and there will no longer be ‘Court Fee Remissions’ for those on lower incomes, pension or benefits.

The fee comprises two elements i.e. the Adjudicator’s Fee of £130 (which replaces the old Court Fee) and the Bankruptcy Deposit of £550, which is really the Official Receiver’s Administration Fee. Good news is that people no longer have to attend court for bankruptcy hearings.

Feel free to call us on 01425 600129 for a chat about your circumstances or for bankruptcy help.

Bankruptcy procedures have changed as of 6th April 2016

As from 6th April 2016 the courts are no longer processing bankruptcy applications and the new-style 8-part application is now submitted to the Insolvency Service online.

In what appears to be a concerted bid to streamline the process, people are no longer required to attend court and simply tick a box declaring that what has been submitted is accurate. The reduced court fee of £680 applies to everybody as fee remissions are done away with. It used to be the case that those on limited income or benefits could apply to have the court fee waivered, but this no longer applies.

Once submitted, the case is assessed by an Adjudicator who decides whether to proceed or not. Should it proceed, the bankrupt will be advised and the case is passed on to the local Official Receiver’s office, who processes the case as previously.

To some people, especially younger folks who have been weaned in an online society, this might almost sound like great fun but a word of warning: the forms are still formidable and have to be completed accurately or they will be rejected. Moreover, no allowances have been made for those who do not have home PCs, people with learning disabilities or older folks who know little about modern technology.

At Bankruptcy UK we have set up procedures to deal with all of these issues and will do everything for the client, from completing a fact find and preparing documents for sign off, to submitting everything online. In other words, we’ll make the process seamless while you go bankrupt from the comfort of your armchair.

Bankruptcy UK will help you throughout the process and 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.

Should I Go Bankrupt

bankruptcy-solicitorShould I Go Bankrupt

If you are thinking about bankruptcy but have a few doubts, why not call us for a pre-bankruptcy chat and we’ll run through everything with you.

Near the top of the list has to be the all-important income and expenditure, as this will decide whether it is right or not.

It is often the case that people overlook or under claim on certain aspects of their finances, something we will pick up on straight away. There might be other niggling doubts about cars, properties, HMRC or even Bailiff issues, but we have all the information you require to make an informed choice as to what you can do. Our advisers don’t use scripts and talk in Plain English.

Our Pre Bankruptcy consultation generally lasts between 15 and 30 minutes. We will be able to provide you with a full brief of what is discussed. We offer a very positive approach to bankruptcy.

You will have a clear understanding of how a bankruptcy will effect you and what to watch out for. We provide a full bankruptcy administration service in obtaining your bankruptcy order. You will find our staff helpful and cooperative at all times.

You will find that once you know what is involved we can then work to a time scale that will help you to focus on a date in the future where the order will be made. There are lots of things you can do to help yourself. Especially an Experian Credit Expert membership that will provide you with a full snap shot of your credit file.

Do I include the debt from my limited company in my bankruptcy?

No you don’t as a limited company is a separate legal entity. The only exception to this is if you have signed Personal Guarantees for company loans, something the banks do more and more often these days. Please note, you will also need to stand down as a Director of any limited companies during the term of the bankruptcy. If you call us we will email these forms to you.

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.

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.

Bankrupts can now get Mortgages provided …

It seems the bad times are finally behind us, as lenders are now offering mortgages for those with poor credit histories, including former bankrupts. Yorkshire, Chelsea and the West Brom will allow up to 65% loan to value (LTV), while plenty of other banks and building societies will do 60% LTV. Chelsea even has a 75% LTV option for some poor credit borrowers, but we were unable to confirm whether this included former bankrupts.

Mortgage Brokers are telling us that the rule of thumb for former bankrupts is three years of clean credit, but warn that banks are asking hard questions about affordability. Unlike the formulas of years gone by, where it was simply a case of 4 x joint income, banks are now grilling people to find out exactly what their outgoings are and how much it is costing them on a monthly basis. It might sound like hard work, but at least banks are finally taking responsibility, unlike the pre-recession days when anybody with a heartbeat could get a mortgage.

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.

Should I use my pension to pay off my debts?

With the change in the pension rules, suddenly those over the age of 55 will be eligible to draw down larger sums e.g. £20,000 which could be used to settle debts. Those with long standing debts might view this as a salvation, but what are the side effects of drawing everything down and what else needs to be taken into account?

* The first thing that needs to be considered is the debt itself. How old is it and is it still enforceable? Any debt over six years old might be ‘Statute Barred’ under the Limitations Act 1980 – covered elsewhere on this website – and this needs to be investigated, perhaps by a visit to your local CAB.

* You will have to pay tax on the money you take out of your pension as though it is extra income and this might push you into a higher tax rate – again, this needs to be investigated. Although the first 25% is tax free, you will still be ‘burning away’ a good chunk of your pension in tax and we query the wisdom of doing this.

* You might be exchanging a short term problem for long term deprivation – some people are retired for three decades or more before passing away and loss of income could have a terrible effect in years to come.

* Taking a lump sum might affect your eligibility to certain benefits, especially Housing Benefit under something called ‘Deprivation of Capital’ – we recommend you investigate this thoroughly, as again, it could affect you for many years to come.

Suffice it to say, it is worth taking visiting your local CAB and taking advice before rushing headlong into something that might affect you for the rest of your life.

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.

Pay Day Loans the ‘Kiss of Death’ for Mortgage Applications

Mortgage Brokers have reported that in the past 12 months 85% of mortgage applications involving previous Pay Day Loans, were rejected outright. And of the 85%, a staggering 57% had otherwise perfect credit histories.

Prior to 2012, it was impossible to distinguish between Pay Day Loans and other credit applications, but both Experian and Equifax now list these separately. Unlike other sources of credit which might actually aid a mortgage application, High Street lenders view Pay Day Loans as a financial cry for help and react accordingly. The message is simple: avoid Pay Day Loans at all costs, as even a satisfied one is the ‘Kiss of Death’ in the financial world.

Mortgage Brokers are not saying it is impossible to get a mortgage with a recent Pay Day Loan application on your credit file, but that they would have to ‘shop around’ for a willing lender and that the applicant would almost certainly end up paying a higher rate.

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.

White House ‘Looking closely’ at including student debt in bankruptcy

March 2015 – President Barack Obama has asked administrators to table proposals for including certain types of student debt, especially that loaned by private companies, in bankruptcy. Federal law currently prohibits any student debt, whether from private companies or the US Government from being liquidated in bankruptcy.

Private loans currently make up about 10% of all student loans, with the remaining 90% made by the federal government thus opening the door for student debt made by private lenders to be treated on par with credit card debt and mortgages.

The concern, it seems, is that an increasing number of post graduates are falling behind in payments, while others have defaulted altogether. If the initiative proceeds, private lenders would face stricter federal oversight and rules designed to make them more proactive in reaching out to distressed borrowers and offering better repayment terms.

As it stands, it is not possible to include student debt in a UK bankruptcy.

 

 

Bankruptcy UK

Bankruptcy UK