This will depend on your current income and expenditure, and whether you have any surplus income after all your expenses. This is arguably the most important element of the service we offer, as it is important that you claim the maximum allowable limit for all expenses.
We know the limits and have an outstanding track record in helping people avoid having to pay anything after bankruptcy, known as an Income Payments Arrangement or IPA. If you are placed in an IPA it will be for 36 months and this can amount to a lot of money over the period.
The Insolvency Service has made things tough for those attempting their own bankruptcy, as all manner of non-allowable expenses have been included on the online application. For example, we were astonished to see things like tobacco, alcohol, entertainment and club subscriptions included in the form, as we know these are not allowed.
In fact, we counted around 15 of these non-allowable expenses and if you had included any of them in reducing your surplus income to zero, you would find yourself involved in an IPA. We have a few tricks of our own for avoiding excessive IPAs so call us if you need help.
Bankruptcy UK specialises in taking people through the bankruptcy process in a straightforward manner. We will assess your circumstances then submit the bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for an informal chat on 01425 600129.
I have debts of £23k with a few different creditors which I have been managing to slowly pay off, but I have recently been diagnosed with a condition which has meant I have had to reduce my working hours from full time to part time and now I’m struggling to pay anything. We live at home with my mum so our rent is low. I have a car which is not worth more than £1,500 but is needed due to my condition as I can’t walk far. We would like to buy a house in the distant future. Which do you think would be better: an IVA or Bankruptcy? Which would have more of a negative impact on our future?
Starting from the top, an IVA is specifically designed to protect assets such as properties and businesses, and are wretchedly expensive debt solutions for those in your position i.e. no assets and on low income. Besides, we doubt you would be accepted into an IVA given your earnings. The fact that you have had to reduce your hours will actually help you in bankruptcy, as it is now most unlikely you will be expected to pay anything in an Income Payments Arrangement. As for your car, we feel that in the circumstances you will be allowed to keep it despite it being slightly over the allowed limit. Regarding buying a property in the future, Mortgage Advisers are now able to arrange mortgages for those who have discharged for three years, provided a) there has been no trouble in the interim and b) you have a minimum 25% deposit.
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.