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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The former Debtors Petition and Statement of Affairs have since been replaced by an 8-part online form which you can access by entering ‘Apply for Bankruptcy’ into Google and following the prompts on the Insolvency Service’s website.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 I have a monthly payment once bankrupt

Will I have a monthly payment once bankrupt – Income Payment Agreements

People generally are so intent on getting to bankruptcy that they don’t always pay sufficient attention to the costs of living and the real breakdown of the cost of living and existing.

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. These are known as Income Payment agreements or in some instances Income Payment Orders.

 

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.

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.

Redundant and Bankrupt – will I still have to pay?

I was made redundant in January and  have since been made bankrupt by HMRC. I have no disposable income; in fact, I have no income at all. If I don’t start working in the next 12 months can they still set up an IPA or would it be over?

It would be over. If you have no income there is no possibility of an Income Payments Agreement (IPA). For the benefit of other readers, an IPA is a 36 month payment agreement based on any surplus income you might have after all of your income and expenditure has been taken into account. Possibly the most important part of our job is to ensure that we have claimed the maximum amount possible for your expenses, thus avoid an IPA.

If you were to start working in the next year, you would have to report your change of circumstances and the Official Receiver would assess your income and expenditure to see if there was any surplus income, in which case there might be an IPA. However, we have an extensive knowledge of what may be claimed as expenses and for how much, and we’ll be happy to assist if required.

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. Please note, court appearances are no longer required for bankruptcy as everything is processed online.

How does my partner’s income affect my bankruptcy?

Many of the people we speak to are surprised when we ask about total household income, especially when only one party is going bankrupt. But believe us when we tell you that getting this part of your bankruptcy right is really important, as it will decide whether you end up in an Income Payments Agreement (IPA) for the next 36 months, or not.

For this reason, we need to know what your partner contributes towards household income, rather than what he or she earns. It could be, for example, that your partner takes home £1200 per month, but by the time his / her car finance, credit cards and other expenses (child support, for example) has been deducted, only £700 is available and this is the figure we are talking about – what they contribute towards the bills and food.

This would not apply in cases where both parties are going bankrupt – here we would need to know the full take home pay of both parties. It’s not all bad news, though. as now we can factor in allowances for two people instead of one and that makes a big difference. People thinking about doing their own bankruptcy would do well to seek professional advice when attempting an Income and Expenditure as a bodge job will cost you dearly. Even an IPA of £80 per month works out to just under £3000 over a 36 month period, something you could well do without.

Feel free to call us with any questions or for bankruptcy help on 01425 600129 or 07479 739139 / 07894 481175. Alternatively, post a question on our home page. Court appearances are no longer required for bankruptcy as everything is done online.

 

Do I need a solicitor to go bankrupt?

No you don’t and it will cost you even more if you get an Insolvency Practitioner involved. There is plenty of help available in the form of forums, Citizens Advice and by calling the Insolvency Service Help Line, but where you really need to be careful is in the preparation of the income and expenditure.

If you are a good earner or you have a double income, a botched I and E could see you contributing towards an Income Payment Agreement for three years, something you could well do without. Knowledge of what and how much you can claim is seriously important, as the Insolvency Service will be itching to place you in an IPA, as this is how they recover costs. Call us if you have any doubt as we are dab hands at preparing these documents.

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.

How do I get my name removed from the Bankruptcy register?

I was made bankrupt in March 2007 and received a notice discharge later in the same year. All payments to the insolvency service under an IPA were completed by October 2010. Do i have to contact anybody to get my name removed from the Bankrupt register?

If you Google ‘Insolvency Register’ and search by ‘All courts in England and Wales’, we’re willing to bet any amount of money that your name no longer appears there. Names are removed after 15 months, without fail. The only possible exception is if you are in a restriction, which you are not.

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.

PPI and bankruptcy …

I went bankrupt in 2007 and was discharged in 2008 (6 years ago). I’m thinking of claiming PPI on a loan I had before I went bankrupt – would I be still be able to claim or would my official receiver take the refund if I was entitled to one?

PPI taken on a loan before the bankruptcy is defined as a ‘bankruptcy asset’ and would go to the Official Receiver, to be distributed among the creditors included in the bankruptcy. A number of lenders make out cheque payments to ‘The Trustee of …’ which ensures that this happens, but we have heard of many cases where this prefix was not put on cheques and the recipients simply banked the cheque. Naughty, but what would you do? On a positive note, if you won the lottery the day after you were discharged from bankruptcy, you would keep the lot.

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

 

Will I have to pay anything after bankruptcy?

This is the single most important aspect of bankruptcy – will the Official Receiver ask you for a monthly contribution in an Income Payments Agreement (IPA) after bankruptcy? Many people trip up on their income and expenditure and end up paying money they could have avoided paying, if only they had sought advice.

The Official Receiver will attach any surplus income for 36 months in an IPA and for this reason it is critical that every allowable expense be claimed to the maximum. This is something we specialise in and our success rate in avoiding IPAs is impressive.

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

Bankruptcy and inheritance – do I keep the money?

There are two possibilities according to whether you received an Income Payments Agreement (IPA) or not. If you went bankrupt and did not receive an IPA i.e. a monthly payment for 36 months, you will be able to keep every penny of your inheritance once discharged after 12 months. However, if you were placed in an Income Payments Agreement, you will keep the inheritance less the outstanding amount owing under the IPA. For example, if you inherited £10,000 but still had 24 payments of £100 to pay, you would receive £10,000 – £2400 = £7,600.

Bankruptcy UK offers assistance at all levels and will also prepare and submit your bankruptcy application online. Court appearances for bankruptcy are no longer required. Feel free to call us for bankruptcy help on 01425 600129 for a chat about your circumstances.

 

 

Bankruptcy UK

Bankruptcy UK