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When is my name removed from the Insolvency Register?

When is my name removed from the Insolvency Register?

Your bankruptcy is completely removed from the Insolvency Register 15 months from the date you entered into bankruptcy or 3 months after discharge. The Insolvency Register (Google it) is a public record of all those persons currently involved in Debt Relief Orders, Individual Voluntary Arrangements and Bankruptcies i.e. court sanctioned arrangements.

You are automatically discharged after 12 months and in some cases people are even discharged before the end of the 12 month period.

For those that for whatever reason have entered bankruptcy either voluntarily or involuntarily and have failed to cooperate with the Insolvency Service or trustee then there is a strong chance that they will have what is known as a bankruptcy restriction order against them. This can happen sometimes for innocent reasons such as moving home and not receiving letters from the Insolvency service. Or simply because there is sensitive information that is being requested that people either really don’t wan to answer or haven’t got or don’t know how to get information that is being requested. there is also the people who are just afraid and go into their shell and cant face what needs to be dealt with. Or they simply couldn’t find someone to assist them.

These include persons whose circumstances are unlikely to change viz. pensioners, people on DLA, etc. It is important that you obtain a certificate of discharge when you have completed the 12 month period and submit copies to the three main credit reference agencies, as there can be delays before information is updated. There is a charge for the discharge certificate, but it’s worth paying.

Bankruptcy UK has been helping people with insolvency since 1998 and will guide you through the process step by step. We will avoid jargon and confirm all discussions by email within 30 minutes. Call us for a chat about your circumstances on 01425 600129.

How Do I Apply For Bankruptcy- Call

How do I apply for bankruptcy? I have around £25k debt and mortgage arrears

The former Debtors Petition and Statement of Affairs have since been replaced by an 8-part online form which you can access by entering ‘Apply for Bankruptcy’ into Google and following the prompts on the Insolvency Service’s website. You will initially be asked to provide some basic information, at which point a 12-digit security code will be emailed to you. Once you have this, you may proceed.

Care needs to be taken when completing the income and expenditure section as, if it is found that there is surplus income, you could be placed in an Income Payments Agreement (IPA) for 36 months. We were very surprised to find the Insolvency Service 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 £250pm will cost £9000 over three years, we recommend you speak to our advisors. We are very aware of the importance of the income and expenditure and know exactly what may be claimed and for what amount.

Please note that entering into bankruptcy will not directly affect your property (you mentioned arrears) but if you intend giving up the property, any shortfall will also be included in the bankruptcy. We have found cases where people are in hopeless negative equity and really struggling with high monthly payments on mortgages / secured loans – in these cases, it might be best to surrender the property and go into rented.

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.

Will the Official Receiver tell my job I’m bankrupt?

Not directly, but if you went bankrupt earlier in the year (February / March) your company would almost certainly not be aware of it. The reason for this is that your tax code would not change to NT as is usually the case in bankruptcy, as there would be no time to set up the processes.

If you went bankrupt after April 6th, the Insolvency Service would advise HMRC to instruct the company you work for to change your tax code to ‘NT’ or no tax (without providing a reason as to why). The tax you would have paid is redirected to a different source and used to offset administration costs and to distribute among the creditors. This arrangement ceases at the end of the tax year and your tax code reverts to whatever it was.

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.

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 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.

Will my creditors show up in court when I file for bankruptcy?

No they won’t, as from 6th April 2016 all bankruptcy applications are done online. Your creditors will become aware of the bankruptcy once the Insolvency Service has written to them, but by then it is too late as they will have to deal with the Official Receiver.

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 on 01425 600129 for a chat about your circumstances.

Who exactly is the Official Receiver?

When we refer to the ‘Official Receiver’ we are colloquially referring to the Insolvency Service, for whom he/she is an officer. The OR is answerable to the courts for carrying out the courts’ orders, but also acts on directions, instructions and guidance from the Service’s Inspector General or, less often, from the Secretary of State. The OR has three main responsibilities a) acting as an interim receiver or provisional liquidator b) acting as receiver, trustee or liquidator – the OR becomes receiver and manager when a court makes a bankruptcy order against an individual and c) acting as supervisor: in a fast-track voluntary arrangement proposed by a bankrupt.

In an everyday sense, the OR is the person who processes all the paperwork and investigates the circumstances surrounding a bankruptcy. The OR often gets bad press as the perceived ‘bad guy’ in bankruptcy cases, but there is little to fear if you play it straight. Our experience of the OR / Insolvency Service is generally positive, but woe betide anyone who tries to pull one over on him/her (hiding assets, not declaring bank accounts, etc). Not a good idea.

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.

Are secured loans included in bankruptcy

Yes they are, regardless of whether you intend keeping the property or not. If you are not keeping the property, any shortfall regardless of the time frame involved in selling the property, will be included in the bankruptcy. The mortgage lender will be instructed to advise the Insolvency Service of the final figures when known.

Suspended bankruptcy order

I went personally bankrupting 2006 and petitioned for my own bankruptcy. I was living in rented accommodation at the time and attended an interview at the Insolvency Service office with the official receiver. After my lease ran out on my property I wrote to the official receiver informing them of my new address. I didn’t hear anything from them and in March 2007 it appears that an order was made for my bankruptcy to be indefinitely suspended. In 2012 I thought I had been discharged as I was told by the insolvency service helpline that bankruptcy is automatically discharged after 12 months but if I wanted a certificate then I had to apply to the county court where the bankruptcy was granted and i would have to pay a fee. In 2012 I started a limited company and i have just been contacted by the Official Receiver saying that I am still bankrupt and they have sent me a whole load of forms relating to where I am financially in my life now and that statutory interest will be added at 8% since 2006 on the creditor amount in 2006 which was 380k.

What can I do?

This is quite common and sometime the officers working at the Insolvency service miss crucial communications such as changes of address. There are a number of options that you can try but first and foremost you will need to see the order that was made in 2007 and see if you can provide them with what they wanted then. Remember they will be motivated to squeeze money out of you if they can. If you have the budget then it is definitely worthwhile seeking a lawyer to fight your corner for you.

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.

 

 

Bankruptcy UK

Bankruptcy UK